Vietnam becomes biggest foreign investor in Laos

Vietnam topped foreign investment in Laos with 429 projects totalling USD4.9 billion, said the Lao Ministry of Planning and Investment.

Vietnam topped foreign investment in Laos with 429 projects totalling USD4.9 billion, according to the Lao Ministry of Planning and Investment.

The signing ceremony of Vietnamese-invested hydropower project in Lao

Thailand stands in the second position with 742 projects capitalised at USD4 billion, followed by China with 801 projects worth a combined USD3.9 billion.

South Korea with USD748 million, France USD490 million, Malaysia USD430 million, Japan USD428 million, the US USD150 million, Singapore USD134 million and India USD61 million followed.

Mining was the most popular sector for foreign investors, accounting for 27% of total investment, followed by electricity generation, comprising 25%, said the ministry.

Other attractive sectors for foreign investors included agriculture, services, processing, hotels and restaurants, construction and banking.

The Lao government has implemented policies to reduce and exempt taxes for foreign companies to invest in rural areas.

In the 2011-2015 period the Lao government intends to attract USD15 billion in foreign investments to help maintain GDP growth of at least 8% per year.