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Laos in top ten Chinese new investment destinations
Laos is among China's top ten new foreign investment destinations, according to a report on the website of the Ministry of Commerce of China.
From January to May this year the value of China's newly signed foreign contract projects reached US$55.98 billion, up by 23.2 percent year on year.
The top ten countries and regions in terms of value of newly signed contracts with China were India, Hong Kong, Laos, Pakistan, Kazakhstan, Bahamas, Malaysia, Angola, Nigeria and Algeria, with a total contract value of US$29.13 billion, accounting for 52.1 percent of the overall value of newly signed contracts, the report said.
With its high potential for energy development, mining and hydropower have been the most attractive sectors for Chinese investment in Laos.
“Mining and hydropower development are the most attractive sectors for Chinese investors and have drawn the most inquiries through our office,” said Minister Counsellor in charge of economic and commercial affairs at the Lao Embassy to China Mr Khampanh Sengthongkham.
Infrastructure development is seen as another emerging sector with potential for Chinese investment, with a high-speed rail project to link the Chinese border to Vientiane currently in the process of being finalised.
Greater engagement in the Lao mining sector in recent years by Chinese companies has helped the registered value of Lao exports to China reach more than US$246 million in the first quarter of this year, double the figure recorded in the same period last year.
Last financial year the top three items exported by Laos in terms of value were copper ore, copper and electricity, worth more than US$475 million, US$376 million, and US$288 million respectively.
Hydropower development has been growing rapidly in Laos. In 2006 the country had only 10 power plants with a total capacity of 700MW. Now it has 14 plants with a total capacity of 2,540MW and has the capacity to develop to about 26,000MW in total.
The Lao government has announced its ambitious plan to make the nation the ‘battery of Asean' and feed the energy-hungry region.
Laos, one of the poorest countries in Asia, hopes to overcome poverty by using revenues generated by the electricity and mining sectors to fund development projects that will ensure poverty eradication by 2015 and removal from the UN list of least developed nations by 2020.
vientiane times
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