Laos eyes more FDI from South Korea
Laos eyes more FDI from South Korea
The government has turned its eyes towards South Korea as a new source of Foreign Direct Investment (FDI) as relations between the two countries continually improve.
President Choummaly Sayasone met with representatives of the Korean business community in Seoul last weekend where he urged them to invest in Laos, one of the most resource rich and politically stable countries in the region, which is also enjoying the fastest economic growth.
South Korea is now the fourth largest foreign investor in Laos after Vietnam, China and Thailand.
There are now 256 Korean investment projects in Laos with a total investment value of about US$889 million. Most Korean investment projects are in hydropower and mining. The Lao agriculture and industry sectors also attract Korean investment.
Speaking at the meeting, President Choummaly said Laos has imposed policies to boost FDI since 1988 and has been continuing to improve legal documents to meet the realities of Laos and demand from foreign investors as part of efforts to boost FDI and ensure the sustainability of the national economy.
In 2009, Laos imposed a revised law on investment promotion, offering local and foreign investors more investment incentives, including tax holidays. The law also offers foreign investors the right to own residential land if they invest US$500,000 in Laos.
One of the most attractive things about investment in Laos is that the government offers longer tax breaks and lower taxes for investors who want to invest in rural parts of Laos.
The new policy aims to generate jobs and income for local people so as they can better their living conditions.
The revised Investment Promotion Law also improves capacity building among the sectors concerned to make it easier for foreign investors to do business in Laos. A number of procedural steps and investment barriers have been eliminated in the process.
President Choummaly said Laos had become a member of the World Trade Organisation (WTO) after improving its legal framework to meet the requirements of the international organisation.
The accession of Laos to the WT O marked a historical milestone for the land-locked country in its road to implement its opening up and renovation policy. The move also reflected the confidence of trading partners in Lao economic policy and its political system.
He said a survey financed by the World Bank Group and the International Finance Corporation shows doing business was easier thanks to the government's efforts to eliminate investment barriers and attract more local and foreign investment
President Choummaly also said the government had a policy to maintain strong economic growth of at least 8 percent annually from 2011 to 2015, creating conditions for Laos to leave the list of least developed nations by 2020.
Laos needs estimated investment funds of around US$15 billion to maintain its targeted economic growth from 2011 to 2015.
The private sector will become one of the main driving forces of investment and economic growth.
vientiane times
