Investment value in Vientiane nearly meets expectations
Investment value in Vientiane nearly meets expectations
The Vientiane Planning and Investment Department has reported that the value of local and foreign investment in Vientiane in the nine months of this fiscal year, 2014-15, has almost met the annual plan expected.
The department reported yesterday that it had approved investments of more than 9.92 trillion kip for some 523 projects over the nine month period.
“That is about 82.6 percent of the plan,” the report noted. The figure of 9.72 trillion kip almost fulfills the department's investment target for the year of 12 trillion kip..
The 514 projects consist of general investment projects worth around 9.7 trillion kip, while others involve land concessions on some 257 hectares worth 218.5 billion kip.
The general investment projects are in the fields of trade and services, while the land concessions were awarded for real estate development and shopping centres.
One of the most recent property developments is the Vientiane Center at Nongchanh in Sisattanak district, which opened in March with an investment of about 600 billion kip (US$75 million).
The shopping centre is a three-phase joint development project owned by the Yunnan Construction Engineering Group Company Limited and Krittaphong Group Company Limited.
They have a concession period of 50 years and the option to extend for a further 20 years.
Another major development is That Luang Square, which opened last April in Xaysettha district. It cost more than 98.4 billion kip (US$12.3 million) and was backed by local investors.
A new additional property development project is a trade centre, offices, apartments and car park space that has an investment of about 481.17 billion kip (US$58.68 million). The project, located in Sisattanak is now about 22 percent complete.
Other developments are also in the pipeline now that the Planning and Investment Department has approved land concessions for both local and foreign investors to build golf courses, five star hotels, shopping centres, urban precincts, commercial centres, offices, apartments and car parks.
Some investors have signed a Memorandum of Understanding and are now carrying out project feasibility studies.
Investors are also buying into real estate, property, mining, construction, telecommunications and energy distribution.
The department also reported that banks have disbursed loans worth more than 13 trillion kip in the 11 months of this year, which exceeded the expectation of 1.86 trillion kip.
The loans were mainly for road and bridge construction, production, service and agricultural purposes, including livestock breeding.
The department reported that Vientiane's socio-economic development plan is set to have an investment value of about 14.7 trillion kip this year, including government investments of about 134 billion kip.
Local and foreign investment will be around 12 trillion kip, grants and loans from international organisations will contribute about 700 billion kip and bank loans will account for about 1.86 trillion kip.
Vientiane is the largest centre of economic growth in Laos, thanks to its status as the capital of the country.
