Japan paves way for regional investment

Japan has allocated a grant of US$20 million to help improve transportation in Laos , Cambodia , Myanmar and Vietnam , according to a senior official

The Lao Ministry of Foreign Affairs' Senior Official Leader Sayakane Sisouvong said the grant came from the Japan-Asean Integration Fund.

“At the Asean Summit in Singapore in November 2007, Japan made a commitment to help the new Asean member countries to narrow the development gap and help them reach the same level of development as other Asean nations,” he told Vientiane Times yesterday.

Mr Sayakane, who is also Ambassador at Large to the Ministry of Foreign Affairs, presided over the first Mekong-Japan Senior Officials Meeting in Vientiane .

He said the grant would be used for two projects worth US$10 million each.

The first project aims to improve the logistic systems of Laos , Cambodia and Vietnam . The funding will be divided equally between the three countries.

“We are discussing whether to use the funds to improve logistic systems at the Savannakhet-Mukdahane border checkpoint or the Lao-Vietnamese border. We will decide where to spend the money,” Mr Sayakane said.

The second project focuses on development of the East-West Economic Corridor, which links nations in the Mekong region. Myanmar will receive a share of this grant in addition to Laos , Cambodia and Vietnam .

The Lao government will use the funding to develop infrastructure and policies to promote investment, tourism and socio-economic development on Road No 9.

Mr Sayakane said Japan provided assistance to countries in the Mekong region because it wanted to protect peace and develop basic infrastructure in the region. The improved policies and infrastructures will attract foreign investment from countries including Japan .

A number of senior officials from Laos , Japan , Cambodia , Myanmar , Vietnam and Thailand attended the event.

According to a press release from the Ministry of Foreign Affairs, the purpose of the meeting was to encourage officials to discuss ways to implement the suggestions of the first Mekong-Japan Ministerial Meeting, held in Tokyo , Japan , earlier this year.

The meeting reviewed the recent progress of Mekong-Japan cooperation in the East-West and North-South corridors, with the aim of expanding opportunities for trade, investment and tourism.

By Vientiane Times
(Latest Update May 14, 2008)