Laos the promised land for investors

>> Investors urged to raise Vietnam’s image in Cambodia

>> Vietinbank opens branch in Vientiane

>> SHB increases investment in Cambodia

Most recently, on February 10, 2012 representatives from Laotian and Vietnamese governments joined a meeting in Lao province Champasak promoting investment between Vietnam and Lao central and southern regions.

The representatives also took part in a ceremony to kick-off construction of a $30 million international airport in Attapeu province. The project will benefit from a loan package provided by Vietnam’s big multi-sector player Hoang Anh Gia Lai Group.

Once up and running, the airport would provide a shake-up to Attapeu development through helping it lure more foreign investment. By that time, it will take only one hour to fly from Ho Chi Minh City to Attapeu.

Some big Vietnamese investment projects in Laos would come online in 2012’s late months. This includes a 250 megawatt hydropower plant Sekaman 3 project, a Hoang Anh Gia Lai project on planting 10,000 hectare rubber fields and a project on growing 10,000ha rubber fields by Dak Lak Rubber Company.

According to Ministry of Planning and Investment (MPI) statistics, Vietnam has 206 valid projects in Laos worth more than $3.3 billion in total registered capital. Of this, investment into southern Laos accounts for 55 per cent of total.

Laos presently takes the lead among 55 countries and territories with Vietnamese outbound investments, while Vietnam is in a third place among 52 countries and territories with direct foreign investment in Laos.

In 2011, Vietnam honoured licences to 15 investment projects in Laos with a total committed capital of $478.4 million, ranking second among 19 countries and territories with Vietnamese outbound investments.

Investment in Laos is mainly concentrated on energy with $1.06 billion making up 31.6 per cent of Vietnam’s total investment capital in Laos, proceeding services, arts and entertainment with over $1 billion investment representing 29.9 per cent of total investment.

Agriculture-forestry-fisheries comes third with $534 million grabbing 15.9 per cent. Mining is in fourth position with $376 million holding 11.2 per cent while manufacture and processing industry in the firth place with $152.5 million making up 4.5 per cent.

Disbursed capital has thus far come to $500 million and accrued revenue of Vietnamese firms in Laos mounted to $216.9 million.

To boost investment into this neighbouring country, the Association of Vietnamese Investors in Laos chaired by BIDV chairman Tran Bac Ha came into being in 2011.

“We will expedite a dialogue mechanism with the two governments to hike efficiency of investment projects in Laos and help firms disentangle,” said Ha.