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Vietnam takes top foreign investment position in Laos
Vietnam expects to remain as the largest foreign investor in Laos after the government finalised arrangements for Vietnamese firms to sink US$1.4 billion into projects in Laos.
The Ministry of Planning and Investment announced last week that the government had given the green light for Vietnamese companies to invest in 11 mega projects in Laos over the first six months of this fiscal year with total investment value of US$1.4 billion.
The approved projects will secure Vietnam's position as the largest foreign investor in Laos amid widespread speculation that China was on track to take the top ranking.
Lao National Chamber of Commerce and Industry Secretary General, Mr Khanthavong Dalavong, had said earlier that China was set to become the largest foreign investor in Laos due to the growing number of Chinese-run projects.
The latest data from the government gives a clearer indication that Vietnam will remain as the top investor for now. The government is encouraging Vietnamese firms to invest in central and southern Laos to boost bilateral cooperation.
According to the Ministry of Planning and Investment, in the first six months of this fiscal year, Lao enterprises received permission to invest US$261 million in 57 projects, while Korean enterprises were given permission to invest US$136 million in five projects.
There are now a total of 90 privately operated investment projects in Laos, with a proposed value of about US$2 billion.
In the first six months of this fiscal year, the mining sector attracted most investment, with 18 projects approved for a total investment value of US$1.4 billion. Hydropower ranked second with four projects costing US$298 million, while agriculture was in third place with 33 projects costing US$67 million.
Foreign investment from October to March amounted to US$2.5 billion, of which US$1.9 billion was in the form of equipment and machinery and US$560 million was in the form of cash.
The ministry says the increasing inflow of foreign investment reflects the fact that businesses are now setting up operations after getting the green light from the government.
The government is now operating a ‘one stop service' that makes it easier for foreign investors to do business in Laos. It has also set up a website that provides information for potential investors and outlines areas of development in which it encourages the private sector to invest.
The investment climate in Laos has improved since the government decided to eliminate a number of barriers to economic and business operations in Laos.
vientiane times
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