VIENTIANE: The government is seeking investment in data centres, artificial intelligence and other digital industries as it looks to diversify the economy and attract higher-value projects.
The investment plan for 2026-2030 identifies the digital and technology sector, data centres, artificial intelligence (AI), information technology and financial technology (FinTech) as areas with investment potential.
The new focus is part of the government’s plan to attract more quality investment and reduce reliance on development projects based mainly on natural resources.
Deputy Minister of Finance and Vice Chair and Standing Member of the Investment Promotion and Management Committee, Phonevanh Outhavong, outlined this agenda in a report on past and future investment strategies, when speaking at an investment promotion and management conference.
Under the new direction, the government aims to attract investment that will introduce modern technology, create skilled jobs, and connect Lao businesses with regional and international production chains.
Data centres could be among the most promising areas as demand for digital services, cloud computing and data storage continues to grow worldwide.
Laos has an important advantage for this type of investment through its potential for renewable electricity generation.
To contextualise the scale of this opportunity, the United Nations Trade and Development (UNCTAD) Global Investment Trends Monitor reported that announced global investments in data centres exceeded US$270 billion in 2025.
Driven primarily by the surging demand for AI infrastructure and proprietary digital networks, this sector alone accounted for more than 20 percent of the entire global greenfield project value for the year.
The government’s investment plan identifies renewable energy, including solar and wind power, alongside digital technology as priority areas.
This creates an opportunity to link Laos’ energy resources with new technology industries.
Reliable and competitively priced electricity is essential for data centres because they require large and continuous power supplies.
Laos’ hydropower resources, together with growing investment in solar and wind power, could help support the development of energy-intensive digital infrastructure.
The government also aims to attract investment in clean energy, clean agriculture, eco-tourism and the circular economy as part of its wider drive for green and sustainable growth.
The move into digital industries comes as the government seeks to build a more self-reliant economy by bolstering domestic production and value addition.
The report says future investment should help reduce imports, increase foreign exchange earnings, and create stronger links between foreign investment and Lao businesses.
The report also points to the need for greater technology transfer and skills development.
This means investment in technology is expected to bring more than capital, with investors encouraged to help develop Lao workers and build domestic production capacity.
To further support the need for a tech-ready workforce, international educational partnerships are underway, exemplified by a recent agreement with China to establish dedicated vocational training centres.
Formalised during President Thongloun Sisoulith’s June 2026 state visit to China, this collaboration moves beyond traditional academics to focus on practical skills development, ensuring the Lao workforce is well prepared for the digital era, according to a report in the Lao news agency KPL.
The government plans to improve the investment environment by making the approval process faster, more modern and more transparent.
At the same time, it will be more selective in choosing investors. The government will consider tougher conditions when selecting investors, with emphasis on adequate capital, technical capacity and experience.
The new approach comes as investment activity has picked up. In the first seven months of 2026, the government approved 34 projects in concession and controlled activities worth US$8.5 billion, an increase of 68 percent from the same period in 2025. Actual capital inflows rose to US$1.06 billion.
For 2026-2030, the government needs 636,178 billion kip in total investment to support its development plan. Private domestic and foreign investment is expected to account for 409,470 billion kip, or 64.4 percent of the total.
The goal is not simply to attract more projects, but to bring investment that creates lasting value, develops a skilled workforce, and helps build a more diversified and resilient economy. - Vientiane Times/ANN
