Minister Counsellor (Commercial) of the Royal Thai Embassy to Laos has predicted the information and technology (IT) and logistics sectors will form the main trade and service investments in Laos in coming years.

"I see investment in the banking sector has boomed since last year. However it may not be so next year because it is mostly full now," said Mr Chalaempon Pongchabubnapa in a recent interview.

In 2006, investment was mainly in agriculture. In 2007 it was followed by a boom in energy and mines and recently the banking sector was the main growth area.

Mr Chalaempon predicts that logistics and IT will be the next growth industry because currently Laos is training staff in these sectors. "Already some Thai businesses have been attracted to these sectors," he said. Logistics will become increasingly important in virtually all aspects of business, especially budget management.

Currently Laos is upgrading roads and bridges nationwide and linking with neighbouring countries. These logistical developments will help establish Laos as a land-linked country.

" Laos will be a goods distribution centre supplying neighbouring countries, including China and Vietnam ," he said.

Laos has a local company that is a large supply and distribution centre for construction materials imported from Thailand .

"Another centre that is needed and may be set up soon is IT," Mr Chalaempon said.

Currently IT service and supply in Laos is limited to mostly hardware. Laos should have an IT centre with consultants and provide services in both software and hardware, systems installation and an information service similar to Google.

" Laos does not have a comprehensive IT service industry but business and particularly government services are growing and will need such an industry in the future," he said.

Tourism and service investments will also grow in Laos due to the SEA Games as many people from abroad have now seen the level of development in Laos .

Other commercial opportunities include food services, vehicle servicing and hospitals.

ANN