Vietnam invests $3.76 billion in CLV development triangle

February 29, 2024 | 10:32
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The 13th Joint Coordination Committee Conference of the Cambodia-Laos-Vietnam (CLV) Development Triangle Area, alongside its associated Trade, Investment and Tourism Promotion Conference, underscored the burgeoning synergy among these Southeast Asian neighbours during a gathering held from February 26 to March 1 in Attapeu province, Laos.
Vietnam invests $3.76 billion in CLV development triangle

According to Baodautu, the assembly served as a conduit for the latest policy and regulatory updates, while providing an opportunity for direct dialogue and potential partnerships among businesses from the trio of nations, with a sharp focus on exploring and expanding new avenues in investment, commerce, and tourism.

The Ministry of Planning and Investment's (MPI) assessment shed light on the tangible progression made in cross-border economic cooperation within the triangle.

Vietnam, in particular, has been at the forefront, channelling a substantial $5.44 billion into 248 projects in Laos and an additional $2.91 billion into 206 ventures in Cambodia.

A significant portion of this capital - $3.76 billion across 110 projects - has been concentrated in the development triangle, marking a strategic move that highlights the area's growing appeal as an investment hotspot.

This capital infusion, predominantly allocated towards industrial plantations and the construction, mining and hydropower sectors, has bolstered local economies through job creation and tax contributions, and played a critical role in enhancing local infrastructure, from roads to healthcare facilities.

The investment landscape within Vietnam's segment of the development triangle is equally robust, drawing in 521 foreign- invested projects from 30 countries, totalling over $6 billion. This includes a discernible footprint from Cambodian enterprises, further reinforcing the interlinked economic destinies of these nations.

Despite these strides, the MPI points to a mismatch between the achieved outcomes and the latent potential that beckons. Key sectors ripe for development, such as clean energy and tourism, remain underleveraged, suggesting a reservoir of opportunity yet to be tapped. The ministry identified several hurdles in this context, including infrastructural deficits, opaque investment incentives, and cumbersome administrative procedures, which collectively hamper the region's full economic potential.

"To overcome these obstacles, we envision a strategic roadmap that focuses on crafting bespoke policies to attract investment to the CLV Development Triangle, unlocking the region's combined economic potential," said Vu Van Chung, deputy director of the Foreign Investment Agency. "Our strategy includes optimising the mobilisation of official development assistance and foreign investment, and pushing for a harmonised approach to regional development planning that is in tune with the strategic goals of Vietnam, Laos and Cambodia."

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