The Hindu : Laos PM woos Indian investors

Online edition of India's National Newspaper
Tuesday, Jun 17, 2003

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Laos PM woos Indian investors

By Our Special Correspondent

Photo: Anu Pushkarna

The Prime Minister, Atal Behari Vajpayee, receiving his counterpart from the Laos People's Democratic Republic, Bounnkang Vorachith, at the Rashtrapati Bhavan in New Delhi on Monday.

NEW DELHI JUNE 16. The visiting Laotian Prime Minister, Bounnhang Vorachith, today said that his country was on the threshold of an economic revolution following path-breaking initiatives taken to woo foreign investments.

Addressing a meeting organised jointly by the CII and FICCI here, Mr. Vorachith said Laos had tremendous potential in agriculture, forestry, garments, finished leather and hydro-power transmission. There was also ample scope for investors in tourism and infrastructure development.

The visiting Prime Minister said Laos had a stable political situation, which would work to the advantage of investors. It had decided to exempt import tax and lower taxes. Foreign investors need to pay only one per cent tax on materials required for business in Laos. Further, they are required to pay only 10-15 per cent tax on benefits enjoyed form investing there.

Appreciating India's assistance to his country, he said that India's investment in Laos had gone up considerably. Four companies had made investments worth $ 870 millions. The Kirloskar group of companies had conducted surveys on power transmission projects on a $ 10 million loan by India.

Y.K. Modi, senior vice-president, FICCI, welcoming the Prime Minister, said that since Laos became the member of the ASEAN in 1997, it had opened the eyes of many an investor. India and Laos enjoyed warm cultural ties and it was time to tap the mutual goodwill for establishing a sustainable and rewarding economic relationship between the two nations.

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