China is likely to become the largest foreign investor in Laos in the near future thanks to its increasing flow of investment into the Southeast Asia nation.
The Lao government is now mulling over granting licences for 58 more projects proposed by China and once approved, they will certainly help China overtake Thailand, the current No. 1 investor in Laos, the Lao Ministry of Planning and Investment said recently.
According to the ministry, over the first ten months of the 2008-2009 fiscal year, 20 Chinese projects, worth 247 million USD, were licensed by the government.
As many as 318 licences for projects from China and joint-venture projects between the business communities of both countries have been granted so far. The total investment capital of the projects is 3.57 billion USD, of which 2.67 billion USD is Chinese direct investment, the ministry added.
During a recent visit to China by Lao President Choummaly Sayasone, the two leaders agreed to establish a comprehensive strategic partnership. This will help create a good environment for the continued increase of investment from China./.