‘Laos eager to learn from Korea’

Laotian PM Thongsing Thammavong

Laos, a Southeast Asian country landlocked by five other nations including China, is eyeing Korea as a key partner for foreign investment, according to the Laotian prime minister.

The head of the Laos government, Thongsing Thammavong made a rare two-day visit to Seoul through Thursday to enhance bilateral economic ties with Korea.

“Laos government is stressing the importance of foreign investment (for the nation’s economic development),” said the prime minister during an interview with The Korea Times, Thursday. “Laos will let Korean firms invest more in the homeland of Laos and also wish they can have a deeper understanding of Laos’ economic condition and policies.”

In terms of the total amount of foreign investment in Laos since 2006, Korea ranks fourth after Vietnam, China and Thailand. Korean automobiles also have 37 percent of the market share there, according to the Korea Trade-Investment Promotion Agency (KOTRA).

“It is true that Laos is still a poor country,” said Thammavong. “We need to acquire advanced technology and learn the experience of Korea’s development.”

Following the collapse of the Soviet Union over 20 years ago, the official Communist state has exerted efforts to attract foreign businesses to boost the domestic market and increase exports.

Laos is to become a member of the World Trade Organization (WTO) this year after 15 years of waiting and is scheduled to host the Asia-Europe Meeting (ASEM) in November.

“Moreover modernizing our agricultural sector is essential,” said Thammavong.

Agriculture accounts for nearly half of the country’s gross domestic product (GDP) and provides approximately 80 percent of employment. The prime minister added that the development of the manufacturing sector is important for the nation’s exports, as is exploiting technology for mineral and water resources.

KOTRA, a state-run trade agency which hosted an investment session on Laos Thursday attended by the prime minster, offered the analysis that Laos’ reach out to Korea is part of its strategy to balance China’s heavy investment in the country.

In 2011, China’s investment in Laos amounted to $546 million, twice the size of Vietnam which ranked No. 2.

China, in 2009, has requested the Laos government to provide land in the capital city of Vientiane on which to build a Chinatown that can accommodate over 50,000 residents in exchange for economic incentives.

Laos has a population of 6.5 million with around 10 percent living in Vientiane.

Meanwhile, the Laos prime minister met with President Lee Myung-bak on Wednesday asking for more investment and tourists to visit from Korea. <The Korea Times/Chung Min-uck>

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