Thailand Overseas Investment Center

LAOS: FOREIGN INVESTMENT

FDI in Figures

In the last recent years, foreign investments in Laos grew significantly, thanks to a national policy of promoting FDI. This FDI flow was relatively spared from the global economic crisis since its main investors (Thailand, China and Vietnam, in particular) were only slightly affected by the crisis.

Most sectors are open to foreign investment. However, there are still some remaining barriers to attract FDI, especially the length of time invested in the procedures to obtain the required authorizations, inequalities in terms of tax benefits, the high cost of some applied tariffs and the weakness of infrastructures. The conditions of the investments in the hydroelectric sector are very interesting for foreign investors. Thailand has benefited extensively from the Laotian electricity and therefore it has strongly invested in it. In a global view, the regional participants are slowly taking over the western groups and multilateral institutions in the hydroelectric sector. Laos has moved up four places in the classification Doing Business issued by the World's Bank. It ranked 159 in 2013.

The projects for the production of hydraulic energy and the exploitation of the mining resources represent half of the foreign investments carried out in the last ten years. The transportation infrastructures, tourism and large agro-forestry projects are also attracting new investors. The main investing countries are Laos' large neighbors: Vietnam, China, Thailand, followed by France.

Country Comparison For the Protection of Investors