Laos received close to $4 billion in foreign investment this year

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Vientiane street view © Arno Maierbrugger

Lao Prime Minister Thongloun Sisoulith recently told the ongoing National Assembly meeting that there has been good progress in investments in Laos, with 4,118 enterprises being registered and approved for investment between January and June 2, Vientiane Times reported on June 17.

The enterprises registered have invested a total value of about 30.34 trillion kip ($3.72 billion), Sisoulith said. The registrations include investments in and development of more than 20 big projects under memorandums of understanding. These projects include twelve power plants, seven mining units and six tourism and expressway study plans.

It is understood that many of the investing companies are from China, an important partner in trade and development for Laos.

An official of the Ministry of Planning and Investment’s investment promotion department said the value of investments made during first five months of this year was much higher than the investments during the same period last year.

The Prime Minister said the government will continue to remove obstacles and difficulties hampering business operations and investments by increasing the efficiency of one-stop services and management mechanisms at the central and local levels, “particularly removing some investment approval procedures and increasing speed and transparency in business operation approval.”

Laos is one of the fastest growing nations in Asia. Strong exports and a burgeoning service sector helped its economy surge by 6.8 per cent in 2016. The Asian Development Bank predicts even faster GDP growth of more than seven per cent annually going forward.

Laos is also one beneficiary of China’s One Belt One Road initiative, or New Silk Road. The fact that Laos borders five other nations, including China, makes it a prime target to become a transport hub for the ASEAN region. A prime example is the high speed rail line being financed by China. It will run through Laos and further into Southeast Asia, leading to even more trade.

Laos also points out political stability. high safety. low risk from natural disasters and low labour costs.

However, foreign investors have complained about several difficulties of doing business in Laos, namely the amount of red tape to navigate, the fact that factory land cannot be owned, lack of skilled human resources and rampant corruption.

 

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Reading Time: 2 minutes

Vientiane street view © Arno Maierbrugger

Lao Prime Minister Thongloun Sisoulith recently told the ongoing National Assembly meeting that there has been good progress in investments in Laos, with 4,118 enterprises being registered and approved for investment between January and June 2, Vientiane Times reported on June 17.

Reading Time: 2 minutes

Vientiane street view © Arno Maierbrugger

Lao Prime Minister Thongloun Sisoulith recently told the ongoing National Assembly meeting that there has been good progress in investments in Laos, with 4,118 enterprises being registered and approved for investment between January and June 2, Vientiane Times reported on June 17.

The enterprises registered have invested a total value of about 30.34 trillion kip ($3.72 billion), Sisoulith said. The registrations include investments in and development of more than 20 big projects under memorandums of understanding. These projects include twelve power plants, seven mining units and six tourism and expressway study plans.

It is understood that many of the investing companies are from China, an important partner in trade and development for Laos.

An official of the Ministry of Planning and Investment’s investment promotion department said the value of investments made during first five months of this year was much higher than the investments during the same period last year.

The Prime Minister said the government will continue to remove obstacles and difficulties hampering business operations and investments by increasing the efficiency of one-stop services and management mechanisms at the central and local levels, “particularly removing some investment approval procedures and increasing speed and transparency in business operation approval.”

Laos is one of the fastest growing nations in Asia. Strong exports and a burgeoning service sector helped its economy surge by 6.8 per cent in 2016. The Asian Development Bank predicts even faster GDP growth of more than seven per cent annually going forward.

Laos is also one beneficiary of China’s One Belt One Road initiative, or New Silk Road. The fact that Laos borders five other nations, including China, makes it a prime target to become a transport hub for the ASEAN region. A prime example is the high speed rail line being financed by China. It will run through Laos and further into Southeast Asia, leading to even more trade.

Laos also points out political stability. high safety. low risk from natural disasters and low labour costs.

However, foreign investors have complained about several difficulties of doing business in Laos, namely the amount of red tape to navigate, the fact that factory land cannot be owned, lack of skilled human resources and rampant corruption.

 

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