Laos Remains Largest Destination for Vietnamese Investors

Vietnamese companies have to date injected some US$600 million into Laos, making it continue to be their largest investment destination, according to a recent report from the Lao Planning and Investment Ministry.

 

Agriculture, industry and handicraft, garment, trade, banking, hotel-restaurant business, energy and mining are the most attractive areas for Vietnamese investors.

 

The hydropower sector topped among these with two projects worth US$270 million, followed by the agro-forestry industry with 25 projects worth US$117 million and the mining sector with 15 projects of US$33 million.

 

The commerce and services sectors attracted 13 and 15 projects capitalized at US$13 million and US$11 million respectively.

 

However, the Vietnamese Ministry of Planning and Investment (MPI) said that Vietnam’s investment inflow into Laos has been on the fall. In 2005, Vietnam ranked top among foreign investors in Laos, but it dropped to the second after China in 2006 and to the third this year behind China and Thailand.

 

According to the MPI, Vietnamese companied poured US$391.2 million into 64 projects in 18 countries and territories in 2007, up from the figure of US$347 million of 2006.

 

The ministry also forecast that Vietnamese businesses will invest around US$500 million abroad this year, adding that Laos will continue to be the most attractive destination for local firms in the coming time. (Vietnam & World Economy)