| 14th July 2010 - French investment boosts Lao economic growth |
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French investment has made a significant contribution to the development of the Lao economy over the past decade, according to a report from the Ministry of Planning and Investment.
Electricité de France holds a 35 percent share worth US$1.4 billion in the Nam Theun 2 hydropower project. Nam Theun 2 is the biggest hydropower project in Laos, and has significantly boosted the Lao economy.
The latest report on foreign investment in Laos shows that French businesspeople invested about US$454 million in 68 projects from 2001-2009, becoming the fourth largest foreign investor in the landlocked nation after Thailand, China and Vietnam.
French investment was valued at US$500,000 in 2008, US$11 million in 2009 and US$210,000 so far in 2010, the report shows.
Lao economic growth has been above 7.5 percent over the past five years thanks largely to private investment, which covers about 30 percent of GDP. Investment in the mining, hydropower and agriculture sectors is currently booming.
Most French investments are in hotels, travel agents, restaurants, import-export businesses, consultancy firms, insurance companies and the banking, agriculture and hydropower sectors.
Electricité de France holds a 35 percent share worth US$1.4 billion in the Nam Theun 2 hydropower project in the central province of Khammuan. The project will provide about US$80 million a year in revenue for the Lao government over the 25 years of the project concession agreement.
Secretary General of the French Chamber of Industry and Commerce in Laos, Mr Germain Thomas said yesterday that there were more than 100 French companies operating in Laos, adding that more French enterprises are expected to come in the near future. A group of French businesspeople visited Laos in May this year to seek investment opportunities and investigate high potential areas such as airport development, mining projects, and traditional medicines.
The group was led by president of the General Confederation of Employers of Small and Medium Enterprises (CPGME) of Rhone-Alpes, Mr Francois Turcas.
According to Mr Thomas, French businesspeople have found Laos one of the most attractive countries in Asia for investment as its national economy is emerging while its market is enlarging and infrastructure is better developed.
This has provided good investment opportunities for foreign businesspeople, including those from France, he said, adding that the small number of foreign investors in the country also makes French businesspeople happy to invest as they do not have to face strong competition.
“Everyone likes to be the first one to invest,” he said, adding that this would give them the advantage to compete with new investors.
One of the main attractions which makes French businesspeople invest in Laos is that many of them fall in love with the Lao lifestyle, Mr Thomas said. French people particularly like living in Luang Prabang, one of two World Heritage sites in Laos, he added.
Laos was a colony of France from the late 19th century until 1953. French buildings in Vientiane, Luang Prabang and other major cities in Laos are the best reminder for Lao people of this part of the country's history.
Ekaphone Phouthonesy |