Vietnam leads investment in Laos

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Mining Laos
Worker at a sapphire mine in Laos.

Vietnam has been recognised as the top source of foreign direct investment to the small landlocked nation of Laos, with mining being the most popular sector, according to the Lao government.

Yet a four-year moratorium issued by Laos for new mining projects in mid-2012 due to environmental and social concerns over the expropriation of agricultural land could have negative effects on future investment inflows.

In the period starting in 1989, when Laos adopted their foreign investment law, and ending with 2012, Vietnamese investors funded 429 projects totaling $4.9 billion.

Following up Vietnam during the same period, Thailand actually funded more projects, totaling 742, but only accounted for $4 billion in investments.

China funded the most projects in Laos at 801 projects, with a combined value of $3.9 billion. Other leading investors included South Korea, France, Malaysia, Japan, India, Singapore and the US.

The mining industry absorbed 27 per cent of total investment, followed by electricity generation with 25 per cent.

The moratorium effective for mining operations also is applicable for rubber plantations, a highly supported measure implemented to save agricultural land for Lao people, who mostly live in rural areas and have a per capita GDP of just $1,320.

Laos strives to attract $15 billion of foreign investment – despite the block on agricultural land – and maintain a GDP growth rate of at least 8 per cent per year in the 2011-2015 period.

 

 

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Reading Time: 1 minute

Worker at a sapphire mine in Laos.

Vietnam has been recognised as the top source of foreign direct investment to the small landlocked nation of Laos, with mining being the most popular sector, according to the Lao government.

Reading Time: 1 minute

Mining Laos
Worker at a sapphire mine in Laos.

Vietnam has been recognised as the top source of foreign direct investment to the small landlocked nation of Laos, with mining being the most popular sector, according to the Lao government.

Yet a four-year moratorium issued by Laos for new mining projects in mid-2012 due to environmental and social concerns over the expropriation of agricultural land could have negative effects on future investment inflows.

In the period starting in 1989, when Laos adopted their foreign investment law, and ending with 2012, Vietnamese investors funded 429 projects totaling $4.9 billion.

Following up Vietnam during the same period, Thailand actually funded more projects, totaling 742, but only accounted for $4 billion in investments.

China funded the most projects in Laos at 801 projects, with a combined value of $3.9 billion. Other leading investors included South Korea, France, Malaysia, Japan, India, Singapore and the US.

The mining industry absorbed 27 per cent of total investment, followed by electricity generation with 25 per cent.

The moratorium effective for mining operations also is applicable for rubber plantations, a highly supported measure implemented to save agricultural land for Lao people, who mostly live in rural areas and have a per capita GDP of just $1,320.

Laos strives to attract $15 billion of foreign investment – despite the block on agricultural land – and maintain a GDP growth rate of at least 8 per cent per year in the 2011-2015 period.

 

 

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