Laos, an attractive market for Vietnamese investors

The success of many small and medium-sized enterprises has encouraged larger Vietnamese businesses, especially in banking, telecommunications, and aviation, to increase their investment in Laos.

Currently Vietnam is the third largest investor in Laos. As of the end of September this year, Vietnam's investment in Laos totaled more than US$5 billion in 266 projects.

"Vietnamese businesses are mainly investing in energy, services, infrastructure, mining, banking, agriculture, and forestry. Vietnam is one of Laos's strategic partners and has many opportunities for developing bilateral cooperation," Doctor Bach Ngoc Thang of the National Economics University said.

"Through special economic and political ties, the two governments have encouraged their enterprises to invest and do business in the other nation," he added,

Vietnam has investment projects in 16 out of 18 provinces in Laos. The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has led in financial and banking investment in Laos.

"Over the past 8 years, the Sacombank branch in Laos has experienced remarkable growth, establishing itself as a prestigious brand and integrating well into Laos. Sacombank now offers comprehensive financial solutions and modern banking services suited to various types of local and foreign customers", said Pham Quang Phu, Sacombank's Director General.

Vietnamese projects have contributed up to US$260 million annually to Laos's state budget and generated jobs for 35,000 Lao workers. Next year, the contribution is expected to reach US$400 million and 45,000 jobs.

"We welcome the efforts by the Vietnamese Party, government, and enterprises to boost bilateral cooperation. With the proper strategies, Vietnam's investment in Laos will continue to grow", Lao Prime Minister Thongloun Sisoulith said at a recent meeting with Vietnamese businesses.

(Source: VOV News)