Vientiane province sees slump in private investment
Vientiane province sees slump in private investment
Investment by the domestic and foreign private sector fell by 69 percent in Vientiane province this year after commercial agriculture projects were transferred to the industry and commerce sector for approval.
A prime ministerial directive calling for the suspension of land concessions for mining, rubber and eucalyptus projects until 2015 is believed to be responsible for the dramatic decline.
This year, provincial authorities, notably the Planning and Investment Department, aimed for 24 percent of all investment in Vientiane province to come from private domestic companies and 7 percent to come from private foreign companies, Investment Section Head Ms Khammouy Xayasouk told local media recently.
In fiscal year 2012-2013, domestic and foreign companies proposed investing in 34 projects in the province, worth almost 80 billion kip (more than US$23 million), she said.
The provincial authorities approved 19 of these projects, with the total investment cost amounting to almost 60 billion kip (about US$3 million). Sixteen of the projects were financed by private domestic companies at a cost of about 58 billion kip, Ms Khammouy said.
Of these 16 projects, 10 with total investment of more than 20 billion kip were in the energy and mines sector, two worth 12 billion kip were in agriculture, three worth 3.42 billion kip were in tourism, and one worth 24 billion kip was in the industry and commerce sector.
Private foreign companies invested in one project in the industry and commerce sector worth US$2.50 million, one in the energy sector worth US$0.26 million, and one in the agriculture sector worth US$0.23 million.
Next year the province is looking for 25 domestic and foreign private companies to propose investment projects worth at least 125 billion kip (more than US$12 million).
Provincial investment officials hope investment in the energy and mines sector will top the list, followed by tourism, agriculture and industry.
vientiane times
