China top investor in Phongsaly
China top investor in Phongsaly
China is the largest foreign investor in Phongsaly province followed by Malaysia then Vietnam.
Since Laos opened its doors to investment from overseas in 1999 to date the province has experienced 60 domestic and foreign investment projects at a total cost of US$80 million, of which 38 projects, worth US$64.2 million are investments by Chinese companies.
About 50-60 percent of the project funding has been implemented, the provincial Planning and Investment Department Director, Mr Thongsy Xausouriphom, told Vientiane Times recently.
Last year, the provincial authorities approved only one Chinese investment in the province, worth about US$967,000, while this year they have agreed to four more at a combined value of US$11.2 million, according to the department.
Most of the Chinese investments are in agriculture, such as bananas, rubber and tea plantations, and the mining sector.
The provincial authorities believe that investment by Chinese companies will increase next year, especially in electricity generation.
Commercial products in the northern provinces are being exported to China as the border is very close and many restaurants and hotels there belong to Chinese people.
Some projects do not go according to plan or as per the agreement, however, so the provincial authorities must adjust their regulations and amend parts of the agreement, said Mr Thongsy.
The provincial economy is currently growing by about 8.2 percent and the plan is to expand that to 10 percent by 2015.
To reach this target, the province needs funds of about 1,800 billion kip per year for investment, he explained.
In fiscal 2012-2013 the government approved expenditure of 66 billion kip for infrastructure development, village restructuring and agricultural promotion.
Investment by the government and private sectors in the past has helped to improve local people's living conditions and increased their income through selling their products to the various projects, Mr Thongsy said.
To further improve livelihoods and expand the provincial economy, the authorities there are continuing to encourage domestic and foreign investment into improving the infrastructure and developing agriculture, he said.
China is the overall top investor in Laos this year, with US$1,337 million invested, followed by Lao companies at US$530 million and Thailand at US$416 million, according to the Ministry of Planning and Investment.
In the first eleven months of 2012-2013, the country received private investment in 52 domestic and foreign inspired projects, worth about US$3 billion, approved by the ministry.
This figure is an increase of 5.1 percent over last year with the investments mainly split between electricity generation and delivery at US$1,656 million, mining at US$1,099 million and US$110 million going on restaurants and hotels.
vientiane times
