Lao deputy PM pitches strategic partnership to Indian businesses

Deputy Prime Minister Thongsavan Phomvihane highlighted Laos' strategic location, policy reforms and incentives as he sought greater Indian investment and business partnerships

 

Deputy Prime Minister of Laos Thongsavan Phomvihane on Wednesday invited Indian business entities to explore the "immense competitive advantages” that his country offers.

 

He said Laos is looking not just for investors, but “strategic partners.”

 

Phomvihane, who also holds the foreign ministry portfolio, is on a three-day official visit to India. On Wednesday, the concluding day of his visit, the Laos Deputy PM addressed the India-Laos Business Forum hosted by the Indian Chamber of Commerce (ICC).

 

Situated at the heart of the Mekong Region, and sharing borders with China, Vietnam and Thailand, Laos is positioning itself as a land-linked hub, rather than a land-locked economy, bolstered by “ growing connectivity through the Laos-China Railway,” Phomvihane said.

 

 

While noting the humbling current numbers of the $82 million bilateral trade, Phomvihane invited more investments across agriculture, renewable energy, tourism, and manufacturing. He pointed to a maturing of the investment climate through reforms to the Law on Investment Promotion and a new decree on industrial parks.

 

He underlined that Laos is one of the most politically-stable countries in the region.

 

Pitching for more investments in Laos from India, additional secretary (South) in the Ministry of External Affairs Prashant Agrawal said the Indian market offered zero tariffs for goods and produce from Laos as part of the Duty Free Tariff Programme.

 

He said that companies operating in Laos’s special economic zones can readily serve the neighbouring Asean market at minimal duty.

 

Sectors such as mining, rare earths, renewable energy, manufacturing, automobiles, information technology, and services also offer significant opportunities for collaboration, India’s Ambassador to Laos Yogeshwar Sangwan said.

 

The Asean–India Trade in Goods Agreement (AITIGA) is under review and sustained high-level engagement between our two countries are creating stronger foundations for business and investment, Sangwan said.

 

At a time when energy security, food security, and resilient supply chains are becoming increasingly important, there is substantial scope to deepen cooperation in agro-processing, pharmaceuticals, medical equipment, automotive components, mining, and tourism, speakers at the event asserted.

 

Officials from Laos, at a presentation during the event, highlighted investment opportunities in their country, and elaborated on profit tax holidays to be extended to companies operating in sectors including clean agriculture, agro-processing, industries, educational and skill development, tourism, and public infrastructure.

 

They also talked of exemptions on Customs duties, land concessions/rental fees, and a fixed 5 per cent personal income tax rate for specialists.

 

Phomvihane, on his maiden visit to India on the occasion of the 70th anniversary of India-Laos bilateral relations, had also spoken of greater cooperation with India in dismantling transnational internet scam centres.

 

Phomvihane also called on President Droupadi Murmu, who noted that while bilateral trade and investment has improved, there remains considerable scope for further increase.

---

The writer is a Business Standard Rahul Khullar intern.