Vietnamese enterprises make positive contributions to Laos' socio-economic development

21/07/2023    86

Projects with investment from Vietnamese enterprises in Laos are currently operating effectively, thereby creating jobs, increasing incomes for thousands of local workers, and supplementing revenue for the Laos state budget.

In the spirit of great friendship, special solidarity, and comprehensive ties, the Governments of Vietnam and Laos have created the most favourable conditions possile for both nations to enhance economic ties in a more methodical direction.

Many effective investment projects run by Vietnamese enterprises have remarkably contributed to the host nation’s socio-economic development, which has been acknowledged and highly appreciated by the Laotian government.

Star Telecom Company with the Unitel brand name is one of the nation’s main investment projects in Laos, in the form of the most successful joint venture of the Military Industry and Telecoms Group (Viettel).

The 14-year journey of this enterprise marks impressive achievements, thereby becoming an exemplary success symbol.

From the smallest mobile service provider, Unitel has become the leading telecommunications company in Laos with 3.3 million subscribers, duly accounting for up to 57% of market share, thus making Laos one of the countries with the best 4G coverage and speed throughout Southeast Asia, with high-speed Internet accessible to all Laotians.

In addition, Unitel has continuously made positive contributions to the overall socio-economic development of Laos by creating jobs for 27,000 employees, ranking second in the neighbouring country in terms of tax and budget contributions.

Like Star Telecom Company, Lanexang Public Assurance Company was established on the basis of collaboration and capital contribution between Lao Development Bank and Vietnam Post Insurance Corporation.

Over the past 13 years, the company has seen constant development and created a certain position through a network of more than 200 agents spreading across Laos.

Along with business and social activities, the company has also made practical contributions aimed at community development programmes in Laos as a way of preserving the image of the joint ties.

Duong Dinh Bang, chairman of the Vietnam Business Association in Laos, said that co-operation in investment, business, trade, and services of Vietnamese enterprises in Laos over recent years has achieved remarkable results.

Of these, the social security work carried out by Vietnamese enterprises in Laos reached nearly US$73 million, with a particular focus on health care, education, and building houses for the poor in remote areas.

According to Bang, the Laos Government is actively amending the current legal system as a means of improving the local business investment environment.

Numerous agreements between the two countries have been signed, thereby creating a favourable legal corridor for further investment activities of Vietnamese enterprises in Laos.

The ministries and sectors of the two countries, especially the Ministry of Planning and Investment and both nations’ co-operation committees, have supported investment production and business projects by Vietnamese enterprises in Laos, which are gradually stabilizing.

Vietnamese enterprises operate in Laos primarily in the fields of investment, trade, finance - currency - banking, hydropower - mining, petroleum trading, and transportation.

Evaluating the activities of these firms in the Laotian market, Viengsavanh Vilayphone, vice chairman of the Lao-Vietnam Cooperation Committee, said that most of the investment projects in Laos carried out by these companies are effective, creating steady for local workers as a mean of gradually improving the quality of life for local, as well as contributing to the host nation’s socio-economic development.

Over recent times, the Commission has co-operated with the country to solve problems and difficulties of many Vietnamese enterprises investing in Laos.

In 2022, the total trade turnover between both sides reached US$1.703 billion, up 24.1% compared to the previous year.

In particular, the first five months of the year saw bilateral turnover hit US$701.42 million, up 1.57% on-year.

Notably, Vietnamese investment in Laos has made remarkable changes, with the total registered investment capital in 2022 reaching over US$180 million, marking an annual rise of 52.5%.

During the first half of this year alone, with four new projects and two increased capital projects worth US$26.3 million, Vietnam continues to be the third largest investor in the neighbouring country.

Source: VOV