Laos seeks ways to attract more investment

VIENTIANE (Xinhua): Lao government is holding talks with businesses about the challenges being encountered and possible solutions, aiming to attract more domestic and foreign investors.

The government is also seeking to improve regulations and mechanisms to make investment management more effective, especially through the Law on Investment Promotion, Lao National TV on Thursday (June 29) quoted Lao Minister of Planning and Investment Khamjane Vongphosy (pic) as saying at the fifth ordinary session of the National Assembly (Ninth Legislature) of Laos.

The government hopes to improve the business environment by introducing faster and more transparent services. It also plans to boost investment by attracting more projects under the Belt and Road Initiative and creating more projects in different provinces, according to the TV report.

In the first five months of 2023, the planning and investment, and industry and commerce sectors, together with Special Economic Zones (SEZs), have approved 8,673 projects with a total value of about 155 trillion kip (some US$8 billion).

Laos is facing both liquidity and solvency challenges due to inflation, a high debt service burden, poor revenue collection, limited financing options, and low foreign currency reserves. However, the government expects economic growth of 4.9 per cent in the second quarter of 2023, said the report.

The government will also continue to improve the investment climate and ensure faster approval of proposed development projects while pushing for continued progress in ongoing mega projects to boost growth.