Laos awards Vietnam an economic zone in the capital, weeks after granting one to China.
Vietnam has signed an agreement to open its first specific economic zone in Laos as Hanoi competes for influence with giant neighbor China in the tiny Southeast Asian economy.
Vietnam is the largest investor in resource-starved Laos, which suffers from high rates of poverty and a lack of viable infrastructure. But China is fast catching up with a variety of investments, including casinos, as Vientiane moves rapidly to draw investment from its neighbors.
The agreement, which was signed Saturday by Lao Minister of Planning and Investment Somdy Douangdy and Chief Executive Officer Le Van Kiem of the Long Thanh Golf Investment and Trade Joint Stock Company, which is the project developer, will turn a Vietnamese-backed Vientiane golf course and real estate project into an exclusive economic zone.
The signing ceremony was also attended by Vietnamese Deputy Prime Minister Nguyen Xuan Phuc, who was visiting Laos to attend a bilateral meeting on economic, cultural, and technological cooperation.
Lao Deputy Prime Minister and Foreign Minister Thoonglun Sisoulith said that the specific economic zone would become “a symbol of investment cooperation” between Laos and Vietnam, thanking Kiem for the investment as well as his donations to support a number of charitable activities in Laos.
Some residents of Dongkhamxang village near the Long Thanh specific economic zone had complained about the compensation they were offered when Vietnamese developers were granted a concession to construct the zone’s golf course two years ago.
To date, Vietnam has implemented 424 investment projects in Laos worth a combined U.S. $3.57 billion.
The two countries pledged to increase two-way trade to U.S. $1 billion this year and to U.S. $2 billion by 2015.
Laos awards Vietnam an economic zone in the capital, weeks after granting one to China.
Vietnam has signed an agreement to open its first specific economic zone in Laos as Hanoi competes for influence with giant neighbor China in the tiny Southeast Asian economy.
Vietnam is the largest investor in resource-starved Laos, which suffers from high rates of poverty and a lack of viable infrastructure. But China is fast catching up with a variety of investments, including casinos, as Vientiane moves rapidly to draw investment from its neighbors.
The agreement, which was signed Saturday by Lao Minister of Planning and Investment Somdy Douangdy and Chief Executive Officer Le Van Kiem of the Long Thanh Golf Investment and Trade Joint Stock Company, which is the project developer, will turn a Vietnamese-backed Vientiane golf course and real estate project into an exclusive economic zone.
The signing ceremony was also attended by Vietnamese Deputy Prime Minister Nguyen Xuan Phuc, who was visiting Laos to attend a bilateral meeting on economic, cultural, and technological cooperation.
Lao Deputy Prime Minister and Foreign Minister Thoonglun Sisoulith said that the specific economic zone would become “a symbol of investment cooperation” between Laos and Vietnam, thanking Kiem for the investment as well as his donations to support a number of charitable activities in Laos.
Some residents of Dongkhamxang village near the Long Thanh specific economic zone had complained about the compensation they were offered when Vietnamese developers were granted a concession to construct the zone’s golf course two years ago.
To date, Vietnam has implemented 424 investment projects in Laos worth a combined U.S. $3.57 billion.
The two countries pledged to increase two-way trade to U.S. $1 billion this year and to U.S. $2 billion by 2015.
