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VN investment potential in Laos untapped
Although trade between Viet Nam and Laos has increased significantly in recent years, investment remains at a low level despite the large potential that exists, according to the Viet Nam Economic and Cultural Office in Laos.
As of May, Viet Nam ranked third in terms of foreign direct investment in Laos after China and Thailand, with total registered capital of US$2.4 billion and 216 licensed projects.
Vietnamese investment in 16 of the total 17 provinces of Laos focuses on the industry, agro-forestry, services, tourism, banking, power, mining, and insurance sectors.
Projects that have proceeded smoothly include the Sekaman 3 hydroelectric plant and rubber plantations.
Although these have been successful, many Vietnamese investors have encountered difficulties when doing business in Laos because of unclear laws, poor infrastructure and relatively low skill levels of labourers.
Bui Trong Dang, Deputy Director general of the Viet Nam National Coal, Mineral Industries Group's branch in Laos, said it was carrying out three mining projects in the country.
He said he needed about 2,000 workers for its steel project in Xiangkhoang Province and another 2,000 for a salt production project in Savanakhet Province. But the local workforce cannot meet the demand.
In addition, the global economic crisis last year and equitisation of State-owned enterprises have caused construction schedules to fall behind, said Hoang Cung Tho Nhan, Chairman of the Viet Nam Business Association for Co-operation and Investment in Laos.
Despite the potential, bilateral trade between Viet Nam and Laos is not expected to reach $1 billion this year, since the figure was only $212 million in the first half, according to the association.
Laotian authorities must clarify basic procedures to promote further investment of Vietnamese enterprises, Vietnamese investors in Laos have suggested.
Duong Dinh Bang from the Viet Phuong Investment Group said Vietnamese investors in trade centres in Laos should speed up their construction so that more Vietnamese goods can be sold in the Laos market.
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