Vietnam to double investment in Laos
Vietnam to double investment in Laos
Vietnam plans to double the value of its investments in Laos as part of efforts to increase economic cooperation with its neighbour.
The Vietnamese Ministry of Industry and Commerce announced at the Viet-Lao Business Forum in Vientiane recently that the Vietnamese government would encourage more firms to invest in and expand their operations in Laos, hoping to double the value of investments to US$7 billion in 2015.
The forum drew more than 200 participants representing Vietnamese firms in Laos.
At present, Vietnam has over 200 investment projects with total capital of around US$3.5 billion. Most of these projects are in the areas of hydropower, mining, industrial tree farms, and banking and financial services.
Vietnam is one of the top three foreign investors in Laos. The other main investors in Laos are China, Thailand, the Republic of Korea and Australia.
Vietnamese enterprises that have a strong presence in Laos are the Laos-Vietnam Bank, Saigon Bank and the Golf Long Thanh Group.
The Lao and Vietnamese gov ernments have committed to increase investment cooperation as part of continuing special relations between the two countries. The two governments have offered a number of investment incentives such as import and export tariff exemptions, hoping to boost the value of bilateral trade to US$2 billion in 2015 .
The two way trade value of the two countries stood at US$900 million in 2012. Most of the goods Laos imports from Vietnam are machinery, oil, and construction materials, while most of the goods Laos exports to Vietnam are agricultural products and minerals.
The Lao and Vietnamese governments have also committed to encourage more businesspeople to invest in the two countries. One of the major Lao companies investing in Vietnam is the Phonsack Group, which announced its intention to build a wood processing plant last year.
Many Vietnamese businesses consider Laos to be an attractive investment destination. They believe that Laos is not just a growing market in the Asean region but also an important land bridge to markets in northeast Thailand.
Thailand is not only one of the largest investors in Laos but is also a major source of tourists, so Vietnam sees Laos as a potential market for Thai consumers.
The Lao government actively encourages foreign direct investment, hoping it will boost GDP growth so Laos can leave the UN's list of least-developed countries by 2020. The country is an attractive destination for investment because it has plenty of natural resources, cheap labour, and WTO membership.
Political stability also gives investors the confidence to invest in Laos.
vientiane times
