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Future Direction of ASEAN–Japan and Laos–Japan Cooperation
H. E.
Mr. Takeshi Hikihara, Ambassador of Japan to the Lao PDR
27 January 2017 (Friday)
1. Introduction
Sabaidee Pi Mai, a Happy New Year. Following the international new year, we will
have a Chinese or Vietnamese new year tomorrow. I have found many wonderful things in
Laos since I arrived here a year ago. Among them, one of the best is that we can enjoy “new
year” many times in a year.
I have had quite a hectic time since I was appointed as Ambassador in Laos a year
ago, not only because of joining each of these new year parties, but also the last year has
been a very important year for Laos, for Lao–Japan bilateral relations, and for ASEAN–
Japan relations. I feel so lucky to be here to witness these historical moments.
Through the 10th Party Congress in January and the formation of a new cabinet in
April, a new leadership of the Lao PDR was established. The 8th Five–Year National
Socio-Economic Development Plan was approved by the National Assembly and the
endeavor to bring the country out of least developed status by 2020 has started. Moreover,
Laos has successfully fulfilled its historic role as the first-ever ASEAN chair after the
establishment of the ASEAN community in 2015. I would like to express sincere
congratulations for all those great successes.
The integrity, stability, and prosperity of ASEAN are essential for the peace and
prosperity of Japan as well as the Asia–Pacific region. From that viewpoint, the Japanese
government has been fully supporting the efforts to establish the ASEAN community through
various frameworks, such as ODA, the Japan–ASEAN Integration Fund (JAIF), Japan–
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Mekong and Japan–ASEAN cooperation, and other forms of bilateral and multilateral
cooperation.
This year already, Japan further continues its effort to strengthen its diplomatic ties
with ASEAN member countries. Prime Minister Abe visited the Philippines, Indonesia,
Australia, and Vietnam from 12th to 17th January, aiming at enhancing the bilateral and
regional relationship with those countries. He also shared the idea that ensuring the unity
and centrality of ASEAN is essential to strengthen the role of ASEAN as a main player in the
region. On the occasion of the 50th anniversary of establishment of ASEAN this year, Japan
will fully support ASEAN to consolidate its unity and centrality in various fields such as
political, security, and economic. Today, I would like to talk about the progress of up to now
and future prospects for Japan-ASEAN and Japan-Laos relations.
2. Development of ASEAN–Japan Relations
Japan and the South-East Asian region have long been connected through maritime
trade routes. From the 16th to the 17th century, Japan carried out foreign trade by licensed
trading ships under the authority called “Shuin-sen”. At that time, a Japan-town flourished in
Ayutthaya, Thailand. Mr. Nagamasa Yamada, who lived in the Ayutthaya Japan-town and
played an active role under the Ayutthaya dynasty, is well known by Japanese people today
as his name appears in every Japanese textbook. There were other Japan-towns also in
Vietnam, Cambodia, and the Philippines.
There also has been a trade relationship between Laos and Japan at that time. In
Japan, bamboo parts which connect the fire bowls and mouthpieces of tobacco pipes are
called “Lao,”, which is said to be named after “a bamboo from Laos.”
Japan and the continental part of ASEAN, including Laos, have been closely related
not only through commercial activities but also through the Buddhism which we have in
common even to this day. We have some Buddhist words in common, such as “Tak-Baht
(alms giving)” and “Na-Lok (hell)” in Lao, which have the same pronunciations and meanings
in Japanese. We can observe the trails of the Buddhist monks across the ocean through
those common words.
Personally, I was born in Nara, which was once a Japanese capital in the eighth
century and has many old temples since that time. Vientiane with its many temples
throughout the city feels familiar to me. I have never before seen a country whose people
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practice so naturally the ethics of Buddhism on a daily basis. I am so impressed and
refreshed whenever see the “Tak Baht” in the early morning.
Turning our eyes to the present, ASEAN was established fifty years ago (1967)
under the philosophy that the South-East Asian countries could contribute to peace and
stability of the region by clarifying their regional identity as a community and tackling
challenges on their own. In the late 1990s, Vietnam, Laos, Myanmar, and Cambodia joined
ASEAN and the “ASEAN 10” was started with its unique diversity of political systems,
cultures, and religious backgrounds.
Today, ASEAN is situated in the heart of Asia and straddling the Pacific and Indian
Oceans. It is now a large center of production and consumption, containing a total
population of 630 million and 2.5 trillion dollars of GDP. We can describe the region as a
driving force of the world economy. Its importance is not only in the economic area. ASEAN
also plays a core role in peace and prosperity in the Asian region as the main driver of East
Asian regional political systems such as the East Asia Summit (EAS) and the ASEAN
Regional Forum (ARF). This economic and political significance makes the partnership with
ASEAN especially relevant and vital for Japan.
Soon after World War II, Japan started support for the national building efforts of the
South-East Asian countries. Japanese overseas economic cooperation was initiated with
grant aid to these countries in the mid-1950s. Immediately after the establishment of ASEAN,
Japan started its economic relationship with ASEAN by launching the “ASEAN–Japan
Forum on Synthetic Rubber.” in 1973.
In 1977, Prime Minister Takeo Fukuda attended the Japan–ASEAN Summit
Meeting in Kuala Lumpur, Malaysia, which was the first summit meeting between ASEAN
leaders and the leader of a non-member country. Prime Minister Fukuda made a historic
announcement of the so-called “Fukuda Doctrine,” in order to clarify Japan's diplomatic
principles for ASEAN as follows: (1) Japan rejects the role of a military power; (2) Japan will
do its best to consolidate the relationship of mutual confidence and trust based on
“heart-to-heart”; and (3) Japan will be an equal partner of ASEAN. In the following year,
1978, the Japan–ASEAN Foreign Ministers' Meeting was held.
Since then, Japan, as ASEAN's first dialogue partner, has developed together with
ASEAN for more than 40 years, as an essential partner in economic cooperation, trade, and
investment. The new member countries of ASEAN, including Laos, which suffered from the
severe aftereffects of civil war for decades, have a development gap with the founding
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member countries. Japan has been providing assistance to these new member countries to
narrow the gap between the member countries and to encourage ASEAN integration.
In 2013, the ASEAN–Japan relationship marked its 40th anniversary. In that
commemorative year, Japan's Prime Minister Shinzo Abe announced the Five Principles of
Japan's ASEAN Diplomacy and visited all the 10 member countries of ASEAN. His purpose
was to contribute to ensuring regional peace and prosperity amid a rapidly changing
strategic environment in the Asia–Pacific region. The Five Principles are as follows:
(1) Protect and promote together with ASEAN member states universal values, such as
freedom, democracy, and basic human rights;
(2) Ensure in cooperation with ASEAN member states that the free and open seas, which
are the most vital common asset, are governed by laws and rules and not by force, and
welcome the United States' rebalancing to the Asia–Pacific region;
(3) Further promote trade and investment, including flows of goods, money, people and
services, through various economic partnership networks, for Japan’s economic
revitalization and the prosperity of both Japan and ASEAN member states;
(4)
Protect and nurture Asia's diverse cultural heritages and traditions; and
(5) Promote exchanges among the younger generations to further foster mutual
understanding.
In the end of the same year, the Japan–ASEAN Commemorative Summit was held
in Tokyo. At that summit meeting, the ASEAN and Japan leaders announced greater
cooperation as equal strategic partners, focusing on four key areas of the partnership:
(1) Partners of Peace and Stability, (2) Partners for Prosperity, (3) Partners for Quality of Life,
and (4) Heart-to-Heart Partners. Japan pledged 2 trillion yen (approximately 17.6 billion
dollars) of economic assistance over five years, to support the establishment of the ASEAN
Community. Japan also disbursed 100 million dollars to the Japan–ASEAN Integration Fund
(JAIF) 2.0 to support ASEAN integration.
Since then, ASEAN–Japan relations have been developing in many areas. ASEAN
has been the largest Asian destination for the foreign investment of Japanese companies
since 2013. The number of tourists from ASEAN to Japan has doubled in the past two years,
reaching 2.1 million in 2015.
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3. Recent Progress and Future Vision of ASEAN–Japan Cooperation
The year 2016, when Laos took responsibility as a chair of ASEAN, was the first
year to launch of the ASEAN Community. Japan welcomes that ASEAN integration has
steadily progressed and entered into the new crucial phase. We are determined to
strengthen our cooperation along with the Five Principles of Japan's ASEAN Diplomacy as I
mentioned.
In this context, I would like to emphasize two important issues for Japanese
cooperation; these are “respect for diversity” and “rule of law.”
As we all know, prosperity in any region will not be achieved without maintaining
peace and stability. The ASEAN and dialogue partners, including Japan, have to deal with
many challenges in the region such as terrorism, extremism, and maritime security. We have
to make a collective effort to address those challenges and to maintain a secure regional
environment.
Japan shares universal values such as freedom, democracy, and basic human
rights with the ASEAN member countries. At the same time, Japan also respects the
“diversity” of the ASEAN member countries such as religion, ethnicity, and ideologies.
Recently, ASEAN is facing a growing threat from terrorism, as we saw in the terrorist attack
in Jakarta early last year. In taking counter-terrorism measures, fostering moderation with
tolerance and understanding of others is the key. With this viewpoint, Japan is currently
conducting projects to prevent violent extremism through the Japan–ASEAN Integration
Fund (JAIF).
What ensures “diversity” is the “rule of law.” For the co-existence and co-prosperity
of a group of countries with diverse social-economic systems, a common rule should be
established and all the member states should respect the rule. The "ASEAN Community
Vision 2025” adopted at the ASEAN Summit in November 2015 also emphasizes that the
ASEAN Political–Security Community should be a rule-based community with common
values and norms. That vision firmly maintains the ASEAN basic principles, common values,
and the norms and principles of international law.
Nowadays, the “rule of law” is being severely tested in the area of maritime security.
Japan advocates the “Three Principles of the Rule of Law at Sea”:
(1) States should make and clarify their claims based on international law;
(2) States should not use force or coercion in trying to drive their claims; and
(3) States should seek to settle disputes by peaceful means.
The importance of maintaining maritime order in accordance with the principles of
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international law was also reaffirmed at the G7 Summit and its Foreign Ministers’ Meeting
hosted by Japan last year. At these meetings, the participating countries voiced strong
objections to unilateral attempts to change the status quo in the South China Sea, or claims
and actions not based on international law there. We have to work together to establish a
regional order where the principles of the “rule of law” will be fully respected and
implemented.
To ensure the “rule of law,” the EAS will play a key role. In the EAS Summit hosted
by Laos last year, almost all the leaders of the participating countries stressed the
importance of the rule of law. The EAS Chairman’s Statement also mentioned the
importance of the rule of law in international relations, the importance of resolving disputes
by peaceful means in accordance with universally recognized principles of international law,
and the importance of non-militarization. I highly appreciate the effort of Laos as a Chair to
make those phrases a reality. To achieve this, it is essential to enhance the role of the EAS
as a premier forum of the region, and the further promotion of integrated regional
cooperation centered on ASEAN will be needed. Japan will provide full support to enhance
the role of the EAS.
In accordance with “the ASEAN Community Vision 2025,” “the Blueprint 2025” of
three Communities — Political–Security, Economic, and Socio-Cultural Communities — was
adopted in November 2015. Japan provides comprehensive support to realize the blueprints
of those communities. Examples of the recent Japanese cooperation are as follows:
(1) Political–Security Community
- Maritime Security:
Providing human resource development assistance for maritime
security capacity building of 1,000 officials over three years (2016).
- Counter Terrorism: Adopting “The ASEAN–Japan Joint Declaration For Cooperation to
Combat Terrorism and Transnational Crime” (2014),
providing approximately 45 billion
yen over three years for Asia as comprehensive counter-terrorism measures, and support
developing 2,000 personnel for counter-terrorism over three years (2016).
- Defense Cooperation:
Holding the Second ASEAN–Japan Informal Defense Ministers
Meeting and announcing “Vientiane Vision,” a Japanese initiative to strengthen ASEAN–
Japan defense cooperation (2016).
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(2) Economic Community
- Providing 200 billion dollars in five years to promote the development of infrastructure, both
qualitatively and quantitatively, under the "Expanded Partnership for Quality Infrastructure"
initiative, based on the principles agreed to at the G7 Ise-Shima Summit (2016).
- Developing industrial human resources under the ''Industrial Human Resource
Development Cooperation Initiative',' which will provide assistance for 40,000 people over
three years (2015)
- Promoting high-level human resource development under "Innovative Asia," in which we
will receive 1,000 foreign students in five years and provide them with the opportunity to
work at Japanese companies (2016).
- Launching the "Japan–ASEAN Women Empowerment Fund" of around USD 100 million
which will support small-scale businesses run by women through micro finance (2016).
(3) Socio-Cultural Community
- Supporting human resource development in the health sector under the "ASEAN–Japan
Health Initiative," which will provide assistance to 8,000 people for five years in order to
promote health, prevent illness, and enhance the level of medical care (2014).
- Launching “JENESYS 2016” to promote people-to-people exchanges, targeting around
3,700 young people to be invited to Japan in one year (2016).
Japan hopes to be an essential partner for ASEAN to fully realise its potential by
respecting “diversity” and enhancing “connectivity.” We are determined to cooperate with
ASEAN so that it will continue to be a main player in the region by enhancing integrity and
centrality, and developing a transparent and fair society under the rule of law.
4. Direction of Laos’ Development and Japan–Laos Cooperation
Laos is granted with abundant land and natural resources, a stable political system,
and honest people. Its development potential is very high.
Laos is a land-locked country,
but you can also say that Laos occupies a very strategic position where it is surrounded by 5
neighboring countries.
In this sense, improving connectivity is truly the key to its
development.
"Strengthening connectivity" is also regarded as the most important issue in the
context of ASEAN community building.
"Connectivity" doesn't simply mean building
infrastructure. It will not be beneficial to local people if the following three elements are not
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well organized: "physical connectivity" such as transportation, information communication,
and energy networks; "institutional connectivity" such as facilitation of trade, investment and
services; and "connectivity of people to people" through tourism, education and culture.
In this regard, Japan submitted a master plan to strengthen connectivity consisting
of these three elements at the 17th ASEAN Summit in October 2010. Based on the idea that
"Making ASEAN into a regional cooperation hub, ensuring the stability and prosperity of is
vital not only for Japan and ASEAN, but East Asia as a whole,” Japan fully supports ASEAN
efforts to strengthen its connectivity.
In terms of ASEAN's connectivity, Laos is located at a very crucial point where it
links with many neighboring countries.
Japan has been trying to strengthen Laos'
connectivity in order to turn its development potential into reality by providing a wide range of
supports for the benefit of local people.
In 2006, the second Mekong International Bridge
linking Laos and Eastern Thailand was opened with Japan’s support.
It used to take more
than 2 weeks by sea transportation between Bangkok and Hanoi, but it is now shortened to
3 days by land.
Last year, Japan pledged support for bridge renovation on Road No. 9
(2.53 billion yen) and construction of the Wattay International Airport expansion has also
started.
If the ASEAN community building is fully completed and connectivity is strengthened,
the flow of goods and services will be encouraged and economic activity will be further
revitalized; at the same time, however, domestic companies will be exposed to more intense
competition with foreign companies. In this regard, strengthening industrial competitiveness
becomes an urgent issue for Laos.
For many years, Japan has been providing support for
primary and secondary education, especially in science and mathematics, business
development through the Laos–Japan Center (LJI) at the National University, various
scholarships and training programs etc.; all of them for the sake of human resource
development and strengthened competitiveness.
In addition to the above, Japan has been providing support in various sectors, such
as improving the education and health sectors to reduce the gap within ASEAN, upgrading
water supply, supporting agricultural development, electric power development, and UXO
clearance in both technological and financial aspects.
Last year, Japan announced
financial support for 4 new projects, with approximately 1 trillion KIP, including expansion of
the water supply in Vientiane and the renovation of Road No. 9 bridges as mentioned earlier.
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And last year, we have made a new significant step forward. Prime Minister Abe and
Prime Minister Thongloun announced the "Japan–Lao PDR Joint Development Cooperation
Plan" after their bilateral summit meeting in September.
Laos has set a national goal of
graduation from Least Developed Country Status by 2020 through the implementation of the
new Five-Year National Socio-Economic Development Plan VIII (2016–2020) (8th NSEDP).
Our plan is the first joint attempt by both countries to cooperate in the medium term for
achieving the development goal. The joint plan aims at
(1) Achieving greater hard and soft connectivity with neighboring countries;
(2) Raising competitiveness through industry diversification and training the industrial
workforce; and
(3) Rectifying disparities through balanced regional and urban development taking
environmental and cultural preservation duly into account.
In addition, in order to ensure the steady implementation of these three pillars, we will also
work together to improve the mechanism to stabilize the macro economy, to support
stronger financial planning, to ensure the consistency of development plans and budget
formation, to strengthen governance, etc.
These efforts will contribute to the 8 areas that Laos prioritized as the Chair of
ASEAN 2016, especially for reducing the gap, promoting tourism, strengthening connectivity,
facilitating small and medium enterprises, and creating more jobs.
In addition to the efforts made by the government sector, the role played by the
private sector is becoming increasingly important as the Lao economy develops.
The
number of Japanese companies operating in Laos has doubled in three years, now counting
135 companies.
There are top Japanese brands such as Nikon and Toyota Boshoku.
Aderance is another top brand, which produces hair wigs and employs 1500 local people,
while JALUX produces high-grade vegetables in the Bolaven Plateau and exports them to
Japan.
A company called Andou has adapted and expanded traditional Japanese textile
technology in Laos and produces Japanese kimonos-related products.
Various large and
small Japanese companies are leveraging the advantages of Laos and flexing their
economic muscles in Laos.
These Japanese companies make 'high-quality investments' and contribute to Laos’
sustainable development through job creation for local citizens and transfer of Japanese
technology and know-how. Japan has been also contributing to Laos’ sustainable
development and green growth by taking environmental preservation duly into account.
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Japan, both public and private sectors together, will contribute to achieve Laos’ national goal
of graduating from LDC status.
5. Japan–Mekong Cooperation
The Mekong region is located at the center of Asia's transportation routes both by
land and sea, bordering with China in the north, connecting to the South China Sea in the
east and south, and with the west leading to the Indian Ocean through India.
It is a
significantly strategic region and Laos is located at its heart.
Mekong region consists primarily of newer ASEAN member states. And its
development is indispensable in order to reduce the gap within ASEAN and to make the
ASEAN community a reality. Meanwhile, the growth rate of this region maintains the highest
level in Asia.
Development of the region is vital to ensure the prosperity of ASEAN and can
be a driving force for the further development of Asia as a whole.
For Japanese companies,
the Mekong region is a major investment destination. It has also become more important as
a destination for Japanese tourists. Our mutual beneficial relationship is getting stronger.
The clear recognition of the importance of the region led to the establishment of the
Japan–Mekong Cooperation Framework in 2009. At the 7th Japan–Mekong Summit in 2015,
members adopted the "New Tokyo Strategy 2015" and the "Japan–Mekong Action Plan".
Based upon this strategy, Japan provides 750 billion yen (about 7 billion dollars) in support
of the region over the next 3 years. During the first year of this plan, from April to September
this year, Japan has already implemented more than one-third of the pledged amount. This
shows our firm commitment to the Mekong region, and also indicates that Japan is a country
that always keeps its promises.
In addition, important initiatives to facilitate ASEAN integration were adopted in this
context last year, such as the "Japan–Mekong Connectivity Initiative" at the Mekong Foreign
Ministers' Meeting and the "Mekong Industrial Development Vision”" at the Japan–Mekong
Economic Ministers Meeting respectively.
While promoting industrial development of the region, the "Green Mekong Forum" is
held every year aiming at the sustainable development of the region. Participants are
actively involved in discussions on issues such as natural disaster prevention, food security,
climate change, cooperation in the electric power sector, water shortages, and agricultural
development.
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By making multilevel and multilateral efforts, Japan will support the development of
Laos and the Mekong region in order to further strengthen ASEAN connectivity and to
reduce the gap within ASEAN.
6. Conclusion
This year marks the 50th anniversary of the foundation of ASEAN. To make building
the ASEAN Community more fruitful and beneficial, it is necessary to improve people’s
livelihoods, develop human resources, strengthen connectivity while reducing the gap and
deepen economic integration through transformation and advancement of industrial
structure.
Japan is committed to strongly support these efforts. We will continue to cooperate
with member countries for their sustainable growth and economic integration. We will
encourage Japan–ASEAN cooperation in a form open to external participation. We will
consistently aim to benefit all the people in ASEAN.
Japan strongly expects that ASEAN will deepen its integration as an indispensable
partner who shares the common values such as rule of law and democracy. We expect that
ASEAN will cope confidently with various regional and international challenges as the core
player of this region, and will lead the way to the enduring stability and prosperity of the
region.