A Japanese tourist takes pictures of her family in front of the Victory Monument, locally known as Patouxay, in Vientiane, Laos. LAURENT FIEVET/AFP
Laos has raised its trade value targets, including imports and exports, with Japan this year after an increase in the annual trade value of both countries.
Last year, the trade target for both was $150.7 million, of which $61.8 million comprised exports and $88.9 million was imports. But the figure achieved was only $206 million, including $86.4 million worth of exports and $119.6 million worth of imports, according to Laos’ Ministry of Industry and Commerce.
The trade value on both sides reached $162.2 million in 2017, of which $70.6 million was exports and $91.6 million was imports.
This year, Laos has set a target of $193.4 million, of which $82.2 million will be exports and $11.2 million is imports.
However, Laos is experiencing a trade deficit with Japan as the value of exports is lower than for imports.
Goods exported to Japan include clothes, footwear, electrical and electronic equipment, white charcoal, furniture, machinery materials, textiles, essential oils, perfumes, cosmetics, toiletries, raw coffee and tea.
Imports include spare parts, machinery materials, electrical and electronic goods, cables and electrical lines, plastic products, cotton, iron and rubber, medical supplies and construction equipment.
Strong cooperation between the Lao and Japanese governments has helped promote trade and investment in both countries even as the number of Japanese visitors to Laos has dropped.
The number of Japanese visitors fell from 43,826 people in 2015 to 38,985 people last year, according to the Tourism Development Department of the Ministry of Information, Culture and Tourism.
While the trade value achieved by both sides was $124.7 million in 2015, it rose to $159.6 million in 2016, the ministry noted.
In 2016, the number of Japanese companies in Laos had climbed to over 130, which is double the figure recorded in 2012, according to the Japanese Embassy.
Currently, there are 146 Japanese companies investing in Laos and more are expected to do so in the future, Japanese Ambassador to Laos Takeshi Hikihara said in February at the ground-breaking ceremony for Hoya Laos Company Limited in the Saysettha Development Zone in Vientiane.
However, the value of Japanese investments has more than halved, from $38.49 million in 2014 to $17.37 million in 2015.
The Japanese Embassy to Laos and the Japanese International Cooperation Agency (Jica) are trying to encourage more Japanese companies to invest in Laos, the ambassador said. VIENTIANE TIMES/ANN
