Lao govt, Chinese business leaders discuss investment
Lao govt, Chinese business leaders discuss investment
Several hundred Chinese business operators working in Laos met with Lao government officials in Vientiane on December 29 to assess China's private investment contribution to Laos.
The meeting, held at the Don Chan Palace hotel, was hosted by the Ministry of Planning and Investment, Chinese Embassy to Laos and the Chinese Chamber of Commerce in Laos.
It was attended by the Minister of Planning and Investment, Mr Somdy Duangdy, and the Chinese Ambassador to Laos, Mr Quan Hua Bing.
Mr Somdy said the meeting was an important platform for the Lao government and Chinese business operators to discuss and resolve any problems so that business could be improved.
Chinese private investment in Laos was highly valued, he said, as it played a crucial role in the development of Laos' economy and the well-being of the population.
“To achieve Laos' socio-economic development goals, especially those listed in the seventh five-year National Socio-economic Development Plan for 2011-2015, we need to maintain economic growth at 7.5-8 percent annually,” Mr Somdy said.
According to the plan, total investment in Laos should account for 32 percent of GDP, or US$15 billion. Investment from private sources in Laos and overseas should contribute 56 percent of this amount.
“In this five-year period, Laos must work harder to source private investment of US$1.7 billion each year, or US$8.5 billion over the whole five years,” Mr Somdy noted. “This is vital for the continued development of our country.”
Mr Somdy said this figure was a small amount for China as it was a huge and rapidly developing country. But it represented a massive contribution for Laos and would enable the government to spur development in a way that would protect the natural environment.
“We must actively seek good quality investment to help us resolve our problems and alleviate poverty,” he said.
The government places great importance on managing the economy and investment by improving legislation. It is also making procedures easier for investors, especially by allowing private companies to register their operations more quickly and streamlining the whole process.
“I see that investment in Laos is increasing every year, especially from China,” Mr Somdy added.
“We extend a warm welcome to Chinese investors. Our two countries not only share a border but we have the same ideological outlook, traditions and culture and our respective parties and governments enjoy close relations.”
Also speaking at the meeting, a Lao government representative said that after allowing foreign investment in Laos for the past 26 years, more and more private companies from overseas were investing in the country.
From 1998 until the present, more than US$25 billion had been invested in more than 450 projects.
Private companies in Laos have contributed more than US$6 billion of the total of US$11.6 billion from private sources. Investors come from 53 countries, with most investment in mining and hydroelectricity, he added.
China is the largest provider of investment out of these 53 countries. From 1988 until the present, China has invested more than US$5.1 billion in more than 756 projects.
