Vietnam remains Laos third largest investor with US$4.22 billion to date

Vietnamese enterprises remain Laos’ third largest investor with 413 projects worth US$4.22 billion to date, according to Prime Minister Nguyen Xuan Phuc.

Overview of the meeting. Source: VGP.

Major Vietnamese projects with positive results in the neighboring country include telco joint-ventures of Vietnam’s largest telecommunication group Viettel, rubber projects covering thousands of hectares from Vietnam Rubber Group, Muong Thanh hotel, Crown Plaza Hotel, Laos – Vietnam bank, Xekaman 1 hydropower plant, among others, said Phuc in a government meeting on December 7.

The Vietnamese government plans to purchase 1,200 megawatts of electricity from Laos in 2020, exceeding the original plan of 1,000 megawatts, and 5,000 megawatts until 2030, in turn supporting Lao socio-economic development, Phuc said.

Additionally, Vietnam provided non-refundable aid of VND3.25 trillion (US$139.76 million) in the 2016 – 2020 period, and VND707 billion (US$30.4 million) in 2019, up 18.4% year-on-year, mainly in infrastructure development projects, social welfare and human resource training.  

Over 1,000 Laos students have received scholarship for studying in Vietnam, while the latter continues sending teachers to teach Vietnamese in Laos.

According to Phuc, the progress of major projects such as the construction of Laos' new National Assembly building and the Nong Khang airport is on schedule.

Phuc, however, noted there remains projects with delay in disbursement and construction process, including Luang Prabang hydropower plant, potassium mining project, Xekaman 3 hydropower plant, among others.

In the first 10 months of 2019, bilateral trade turnover reached US$940 million, and is on track to hit US$1.1 – 1.2 billion this year, up 12.6% year-on-year and exceeding the target of US$1 billion. Of the total, Laos is projected to export goods worth US$400 million to Vietnam, up 16% year-on-year, Phuc said.