Optimistic shopping mall development on the rise in Vientiane

Optimistic shopping mall development on the rise in Vientiane

The rapid development projects of shopping malls in Vientiane seems to increase annually despite the lack of interest from local vendors however investors seem confident they can secure tenants in the years ahead.

The trade sector has forecast it may be because the investors foresee a large number of tenants and shoppers in the years ahead.

“The construction of shopping malls has increased in the city centre of Vientiane because investors optimistically wish to cater to future merchants and buyers,” the Director General of the Domestic Trade Department Mr Leuam Yongvongsitthi said.

He explained that the department has no decision on whether the developments go ahead or not but those shopping centres which do will have to be controlled by the department.

Many shopping mall developments are underway in various areas of Vientiane, especially at the Nong Chan marsh, That Luang market, Lao-ITECC and several other loc ations.

“As Laos is preparing to integrate with the Asean Economic Community (AEC) by 2015, the trade activities will be operated independently. Therefore more investors are participating in the construction of shopping centres as can be seen at various sites,” Mr Leuam said. Members of the public are curious as to the increasing numbers of shopping centres and also raised their concerns over the limited numbers of vendors and buyers wishing to take up tenancies due to the low purchasing power of local shoppers. The trade officials said the free movement of skilled labourers and increasing investment and trade, which will come with the onset of the AEC, may see more tenancies being taken up at the shopping malls in question.

Currently the residents of Vientiane can also go shopping at Talat Sao Shopping Mall, Lao-ITECC and other small- shopping malls.

Nongchan marsh in Vientiane is set to be developed as an economic and trade hub over the years to come. The project will comprise a shopping centre, office buildings, apartments, conference facilities, restaurants and pedestrian areas.

A Lao-Chinese joint venture project worth more than US$90 million, the Nongchan marsh development is a joint investment by China's Yunnan Construction Engineering Group Company Limited and Krittaphong Group Company Limited.

“The Lao government already has a clear policy on investment promotion for both domestic and foreign investors and the trade sector also has to control the movement of trade activities,” Mr Leuam said.

vientiane times