A growing attraction

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Indian investors have been attracted to the booming economies and untapped natural resources of the Mekong region, says Vinay Ahuja at DFDL

Indian investment in the emerging economies of the Mekong region has been rising since 2000, influenced by recent policy changes in Cambodia, Laos, Myanmar, Thailand and Vietnam. The existence of untapped natural resources and improving investor confidence in these countries has contributed to the upward trend.

Vinay Ahuja
Vinay Ahuja

Indian entrepreneurs and the government of India (GoI) have invested in several joint ventures and wholly owned subsidiaries, through debt and equity transactions. The GoI has also provided financial support to promote exports including projects from India.

The Mekong-Ganga Commission, established in November 2000 in Vientiane, Laos, has strengthened India’s relations with the Mekong region. The commission comprises six countries – India, Cambodia, Laos, Myanmar, Thailand and Vietnam – and emphasizes four areas of cooperation: tourism, culture, education, and transportation linkage.

Small sisters: Cambodia, Laos, Myanmar

Cambodia: 60% of Indian investment goes into the pharmaceutical sector with the remainder going to the fast moving consumer goods and food and beverage sectors. Recently Indian investors have started venturing into agriculture and mining.

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Vinay Ahuja is a senior adviser in the regional M&A practice group and the head of the India desk at DFDL. He can be contacted at vinay.ahuja@dfdl.com. DFDL specializes in emerging markets and has 11 offices across eight countries: Bangladesh, Cambodia, Indonesia, Myanmar, Laos, Singapore, Thailand and Vietnam.

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