Service businesses best choice for local SMEs
Service businesses best choice for local SMEs
Service businesses are a good choice for local small and medium-d enterprises (SMEs) to invest in with tourism being the country's fastest growing industry, a Thai business operator in Laos has advised.
Tourism development has brought with it extensive foreign investment and many visitors to Laos, Krungsri Head of Commercial Banking, Mr Pornsanong Tuchinda told Vientiane Times last week.
But he warned that investors should be ethical and ensure that projects were mutually beneficial to all, including the government and local people.
Mr Pornsanong also said that tourism sector expansion would be an opportunity for foreign investors to eye new potential opportunities in Laos.
Official figures appear to back up his remarks.
The service sector currently contributes a combined 47.70 percent of Gross Domestic Product (GDP), while industry accounts for 27.50 percent and agriculture 24.80 percent, the Investment Promotion Department of the Ministry of Planning and Investment noted.
The number of hotels, resorts, restaurants and entertainment venues in Laos has increased every year with investment coming from both domestic and foreign entrepreneurs.
In 2014, there were 3,859 hotels, resorts, restaurants and entertainment venues around the country which increased to 4,277 in 2015, according to the Tourism Development Department of the Ministry of Information, Culture and Tourism.
The number of visitor arrivals also increased from 3.3 million people in 2012 to 3.7 million people in 2013, 4.1 million people in 2014, and 4.6 million people last year.
The department predicted visitor arrivals would increase to 5 million people this year and to 5.49 million people next year.
Most visitors come from Asia and the Pacific as well as Europe and the Americas.
Thailand is a large investor in the tourism sector, especially hotels and restaurants, and is also a major source of foreign visitors.
The numbers of Thai tourists arriving in Laos in 2014 climbed to about 2 million and increased to 2.3 million in 2015, accounting for almost 50 percent of foreign visitors.
Vientiane, Luang Prabang, Champassak and Savannakhet provinces are the most popular places for visitors and many provinces are developing facilities to attract visitors and create job opportunities for local people and community development.
Meanwhile the government has given the green light to many investors and is trying to improve regulations to facilitate entrepreneurial activity.
