Laos becomes Vietnam’s top outbound investment destination
Laos has become the top destination for outbound investment from Vietnam as a result of the enhanced special solidarity and comprehensive cooperation between the two countries.
Director General of Laos’ Ministry of Planning and Investment’s Investment Promotion Department, Mr. Manothong Vongsay, that investment from Vietnam in Laos had recently diversified into more sectors.
Previously, Vietnamese entrepreneurs would pump their investment capital into the resource sector, such as mining, hydropower and agriculture, as well as construction. Hoang Anh Gia Lai (HAGL) has invested in rubber tree and oil palm plantations in Laos but many of its projects have been sold to other businesses.
Other large-scale projects undertaken by Vietnamese firms are the Xekaman1 and Xekaman3 hydro plants, power transmission lines from Xekaman to Vietnam, and a US$522 million potassium chloride salt project.
As of March last year, Vietnamese businesses had invested in 270 projects with the value of investment amounting to over US$5.12 billion. However, an official in charge at the Lao Ministry of Planning and Investment told the total value of Vietnamese investment in Laos stood at US$3.7 billion. The official assumed that the rest was also destined for investment in Laos.
The majority of Vietnamese investment has gone into agro-forestry-fishery, telecommunications, mining, and healthcare services. Vietnam is the third largest foreign investor in Laos after China and Thailand. Economists say the close proximity of Laos is one of the main reasons for Vietnamese investors wanting to do business here. Vietnamese investment has contributed to the growth of the Lao economy and has been generating job opportunities in the country in recent decades.