Vientiane to receive an international business centre
Vientiane to receive an international business centre
Laos plans to maintain strong economic growth of at least eight percent over the next few years and this will create huge potential and opportunities for business expansion in the country.
CAMCE Investment Laos, a joint venture between the Chinese state-owned enterprise CAMC Engineering (CAMCE) and Lao Krittaphong Group see increasing GDP growth as a great opportunity and plan to build a business centre where local and international companies doing business in Laos can locate their headquarters.
The business centre will be located on the Mekong riverfront at Don Chan; part of the US$600 million Vientiane New World Project, which the joint venture expects to complete over the next six to eight years. The project also includes an international residence centre and shopping and entertainment centr e.
The project area is located only a short distance from the city centre and various government offices, which will make it easier for prospective tenants to communicate with business partners and government officials. The business centre will be located next to the international residences and shopping centre, where business people will be able to enjoy international food and entertainment close to their offices.
Strong investment flows in Laos justify Chinese real estate investment
According to a report from the Ministry of Planning and Investment, in order to secure annual economic growth of 8 percent, Laos requires 127,000 billion kip (about US$15.9 billion) in investment from 2011 to 2012.
About 50 to 60 percent of the funds will come from foreign direct investment and 10 to 12 percent from private bank loans. Another ten to 12 percent will come from the government budget, and 24 to 26 percent from official development assistance.
Over the first quarter of this fiscal year, the government approved 98 domestic and foreign investment projects with a total investment value of US$2 billion, 31 percent higher than originally forecast.
The government had expected to approve only US$1.5 billion worth of investment projects this fiscal year, but after six months the approved investment value was already above the target figure. The increase was attributed to the improved business environment for foreign investors in Laos.
The ruling Lao People's Revolutionary Party has vowed to abolish barriers for investment, business operation and trade in the country, creating favourable conditions for the private sector to take part in the development of the country.
From 2000 to 2010, Laos approved a large number of foreign investment projects with Vietnam the largest foreign investor with an investment value of US$2.77 billion, while China was in second place with an investment value of US$2.71 billion. Thailand ranked third with a total investment value of US$2.68 billion.
Chinese interests are expected to become the number one investors in Laos as the two countries strengthen economic and trade cooperation.
CAMCE management is confident there is a bright business future in Laos
CAMCE Investment Laos Co Ltd Managing Director, Mr Yao Jian admitted that the ongoing economic growth in the country has made the company feel more confidence to invest in Laos, adding that consultants also recommended that the future of the Lao real estate business is also bright.
Laos is located in centre of the Mekong region and aims to become a land bridge connecting mainland Southeast Asia, in order to attract foreign investment in logistics businesses. It also aims to boost investment in the agricultural processing industry as the country has plenty of fertile land on which crops can be grown.
The ecotourism industry is also growing, creating potential opportunities for new hotel and restaurant businesses in Laos.
According to a survey conducted by the World Bank, the number of enterprises and businesses in the country have increased rapidly over the past several years, and there are now more than 120,000 enterprises registered in Laos.
Despite the real estate boom in Laos, particularly in the capital Vientiane, there is still a dearth of suitably appointed business premises business offices and CAMCE aims to help satisfy that demand.
Foreign diplomats and business people welcome the investment project
At the ceremony to unveil the Vientiane New World Project concept plan, a number of foreign diplomats and business people in Laos welcomed the real estate development project, while some of them said they would consider relocating their offices there once the project is completed.
vietiane times
