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Mekong Center: Asia's new hub
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Other Japanese trading corporations led by the trading companies saw natural transport routes, and their persistence allowed companies to trust the placement of assembly plants. That is the key to the birth and sustenance of what can be called Mekong Central or the Mekong Center.

Because Laos is the least economically developed of the three countries, it has the most relative upside and the most to gain in real economic terms. The country's insufficient development and its geographical proximity to Vietnam and Thailand cause many Japanese corporations to believe training Laotian workers is the key to unlocking the region's full potential.

To enhance their opportunities, there are certain acute areas firms should focus on direct investment. Competition is heating up for the economic benefits the Mekong Center has to offer.

There are two key sectors with great opportunity for direct investment:

1. Hydroelectric power in Laos.

This is the one sector ripe for direct investment. Laos is often forgotten but can be a key destination for investment because it has the most upside compared to Vietnam and Thailand.

The powerful Mekong River, with its terrain of hills and high varying vertical grades, make it a particularly great source of hydropower. In fact, both Thailand and Vietnam import hydroelectricity from Laos.

The Vietnam-Laos Power Joint Stock Co (VLCP) was founded recently for the single purpose of building hydroelectric plants in Laos, China and Vietnam. The projected need for continued and expanding electrical power over the next 25 years is daunting in the Mekong Center and neighboring countries alone.

It is in this sector that Japanese private companies should seize on the opportunity and aggressively.

An example of competitive hydroenergy development that illustrates the opportunities in the field is in Laos the Nam Theun 2 hydropower plant. This plant is a $1.2 billion joint venture between various foreign companies and the Laos firm is about 80 percent near completion. More projects are in the early planning stages for Laos.
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