Vietnamese enterprises attracted by Laos' market
Vietnamese enterprises have reaped successes in Laos thanks to sound business opportunities, market scale and operation quality in the neighboring country.
Laos has licensed 423 projects invested by Vietnamese firms worth more than 5 billion USD, mostly in hydropower, mining, transport, industrial tree plantation and services, according to the Ministry of Planning and Investment.Viettel Global Investment JSC, a subsidiary of the military-run telecom Viettel Group, earned revenue of 13 trillion VND (571.9 million USD) in the first nine months of 2017, up 19 percent from the same period last year.
The Unitel network of Star Telecom, a joint venture between Viettel Global and Lao Asia Telecom. Photo: baodautu.vn
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Also, Hoang Anh Gia Lai Group has invested in rubber tree and oil palm plantation in Laos. It also put Attapeu airport into operation in 2015 and has splashed out 80 million USD on the construction of Nong Khang Airport in Houaphanh province.
Other large-scale projects developed by Vietnamese businesses are Xekaman 1 and 3 hydropower plant projects, power transmission lines from Xekaman to Vietnam’s Pleiku province and a 522 million USD potassium chloride salt project.
The projects have played an important role in the development of both countries. The investments are expected to bring 350-400 million USD to the Lao budget and create 40,000 jobs. Agriculture, hydropower plant and telecommunications are typical Vietnamese investments in Laos. However, this is changing.
Laos has welcomed an increasing capital amount from Vietnamese companies in hospitality. BIM Group is one example. It opened the first five-star hotel in Laos, the Crowne Plaza Vientiane, in April 2017. The 20,000 square metre hotel has 200 rooms and is located inside the Royal Square building.
The visit to Vietnam made by General Secretary of the Lao People’s Revolutionary Party and President of Laos Bounnhang Vorachith from December 19-21 will give a momentum for Vietnam-Laos ties in both diplomatic and economic affairs, opening new opportunities for Vietnamese investment in this market.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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