Lao gov’t promotes investment in potential projects
VIENTIANE, March 5 (Xinhua) — The Lao government has compiled a list of potential development projects to attract domestic and foreign investment, local state-run daily Vientiane Times reported on Monday.
According to the list, local and foreign investors are invited with 27 projects in six provinces out of the country’s 18 provinces or cities. The Lao government will provide tax breaks and non-tax incentives as part of efforts to attract private investment in these projects, said the daily.
Projects or activities invited “have been studied and formulated by concerned sectors and local authorities based on their importance for national economy and having natural resource potentials; these projects and activities have been officially approved by the government or provincial authorities, but require capital for their development,” said a notice posted on the website of Lao ministry for planning and investment since the end of February.
The Lao government is eyeing total investment of about 164 million U.S.dollars by the private sector to undertake these projects and business activities.
The Lao government initiated the concept of compiling potential investment projects as part of efforts to attract investment in projects and business activities that are essential for local development.
The Lao government is actively encouraging the private sector to invest in priority development projects as it is facing a shortage of revenue. The scheme also eases the government’s work as it attempts to turn rural settlements into modern towns, said the daily.
The Lao government hopes the provision of relevant information to business people will help to diversify the country’s economic base. Most business operators in Laos are interested in mining and hydropower as the country has plenty of these natural resources.
According to data from the ministry, most investment is ploughed into electricity generation and mining. From 2011 to 2015, accumulated investment funding in the energy and mining sectors was about 3 billion U.S. dollars and 2.5 billion U.S. dollars respectively.