Vietnam Increases Investment in Laos

A Vietnamese company receives a concession of a plot of land of over 500 ha located in Vientiane by the Mekong River for 50 years to build an international-standard hotel complex and a golf course. The project will cost approximately US$1 billion and to be completed by 2010, as a way to prepare for the celebration of the 450 th anniversary of the establishment of Vientiane.

This concession has been provided due chiefly to the long and special friendship relation between Laos and Vietnam. In other words, it can be considered as way that Laos shows gratitude towards Vietnam’s assistance. As recognized by Mr. Thongmy Phomvixay, Vice Minister of Ministry of Planning and Investment, Vietnam has helped Laos in many aspects, especially in agricultural and irrigation development in Vientiane Prefecture.

This new investment project will contribute to accelerating the already rapid increase of Vietnamese foreign direct investment in Laos, which is projected to exceed that of Thailand and chasing close to Chinese investment in the near future.

Meanwhile, the Chinese companies are unhappy because the Government of Laos (GOL) fails to provide the full amount of land of 1,600 ha to build Chinese’s City and Economic Center Development Project at Thatlouang Marsh as an exchange for the new stadium that Chinese companies are building for Laos to host the Southeast Asian Games (SEAGAME), which will take place at the end of next year, 2009.

Listen to Songrit's report for more details in Lao.