FRIDAY, March 29, 2024
nationthailand

Vientiane eager to draw mega project investors

Vientiane eager to draw mega project investors

INVESTMENT projects from the private sector in Vientiane have not grown as forecast, partially due to global economic setbacks, officials in charge have noted. The city planned to attract private investment for 53 mega development projects under its 2017-2020 investment promotion plans.

However, memorandums of understanding for only 4-5 projects were signed with authorities in 2017, making it difficult for authorities to realise their goals over the next three years.
Among them are the Namxuang tourism development project in Naxaithong district, Nampien tourism development in Pakngum district and the lotus park development in Sisattanak district.
Director of the Vientiane Department of Planning and Investment Phoukhong Bannavong told Vientiane Times this week that many companies were struggling financially, resulting in an investment slowdown in the capital.
Phoukhong said authorities were not only aiming to entice entrepreneurs to carry out new investment projects, but also pushing for greater progress on projects for which authorities have already given concession licences. 
Nongpaen tourism development project in Vientiane’s Hadxaifong district is one that has stalled.
Authorities have revoked the concession license for a development by Lao Asia Trading International Company (LATIC) after the company failed to abide by the law as well as cheated sub-contractors and affected villagers. Several entrepreneurs have expressed interest in investing in the Nongpaen project but feel reluctant given the chronic debts incurred by LATIC.
Concerning the Nongvaeng lake tourism development project, the developer is looking for business partners to jointly operate the project since the initiative requires huge amounts of capital. “I think it could take quite a while for this project to be realised because many entrepreneurs are struggling financially,” he said.
With Lao and foreign private sector investment representing about 70 per cent of the overall investment in Vientiane, authorities are committed to further promoting the growth of this sector.
 

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