Lao Prime Minister Thongsing Thammavong on Thursday asked Japanese firms to invest more in his country and help enhance growth, boasting its appeal as a base for manufacturers.

"I ask you all and your friends to choose Laos when considering (setting up) a production base" in Southeast Asia, Thongsing said in a speech at a seminar in Tokyo during his four-day trip to Japan that started Wednesday.

"I also call on Japanese investors, who are thinking about their 'China plus one' or 'Thailand plus one' strategy, to consider investing in Laos," he said, referring to a business model to diversify potential risks from having a production base in just one country. Some Japanese manufacturers including Toyota Motor Corp. were hard hit by massive flooding in recent years in Thailand.

But Thailand's government also has pushed hard for Japanese investment, with Prime Minister Prayut Chan-o-cha making a nearly identical plea to Japanese government and business leaders during his trip there last month.

Japan is the top provider of official development assistance to Laos. Thongsing's visit came as the two countries are commemorating the 60th anniversary of diplomatic ties.

"Cooperative relations between Laos and Japan are significantly growing and entering a new stage," the prime minister said.

"More and more Japanese investors are showing their interest" in Laos, he added, noting the efforts made by the government of Prime Minister Shinzo Abe to push Japanese firms to expand businesses overseas.

Toyota Boshoku Corp, a supplier for the world's biggest carmaker, and camera maker Nikon Corp are among such investors.

Government data showed that the number of Japanese firms operating in Laos has doubled to more than 120 in November from 2012, with the developing country marking real economic growth of around 8% in recent years.

Representatives from Japanese companies operating in Laos told the seminar that they value Laos for being rich in minerals and other resources as well as its geographical closeness to other rapidly growing economies such as Thailand, Cambodia, Vietnam, Myanmar and China.

Last April, the government-backed Japan External Trade Organization opened an office in Vientiane to collect and provide more business information to Japanese firms investing or considering investing in Laos.

"With the growing number of firms and visitors to the office (in Vientiane), I feel that a certain kind of 'Laos boom' has begun," Hiroyuki Ishige, chairman of Jetro, told the forum, adding half of the enquiries the office receives are related to electronics, auto parts and other manufacturing businesses.

Somdy Douangdy, minister of planning and investment for Laos, gave an assurance that the government is taking steps to improve infrastructure and create a better investment environment.

"We will provide our full support to companies investing in Laos," the minister said.

By KYODO NEWS - bangkokpost.com

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