đầu tư phát triển kinh tế thủ đô viêng chăn giai đoạn 2007-2011 và tầm nhìn đến năm 2020 tóm tắt tiếng anh

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INTRODUCTION
1. The necessity of research
The gravity of lag behind of the national economy in general, and in

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Scope of research:
Theoretical: Mainly refers to the theoretical issues of investment and
development investment, the theory of investment and economic

particular localities increasingly evident, therefore to promote economic growth,

development.

create jobs and contribute to economic restructuring as well as economic

On a practical level: Understanding, analysis and evaluation of the current

stability and improve the lives of the tribal people, a necessary and important

sistuation of economic development investment in Vientiane, offering the

condition is how to invest capital and use of resources for the economy by the

major solutions for Vientiane’s economic development investment in the

most effectively.

near future.

Based on that research, I chose the topic: "Economic development

The range of space and time: The theory is conducted within the subject

investment in Vientiane’s period 2007 - 2011 and vision to 2020".

and activities of development investment for Vientiane, the data for

2. A review of empirical research on economic development in the countries

research focusing in the period from 2007-2011.

in the region and around the world

5. Research Methodology

History of economic development shows that, each country depending on

The thesis uses the methods of dialectical materialism, combined with the

the different conceptions of the subject matter and objective of the leaders chose

history and logical methods, mathematical methods, statistics, modeling

the different model of development: Emphasizing rapid growth issues,

and systematic approach.

emphasizing equality, social fair and comprehensive development.

The research methods using: dialectical materialist method, combined

3. The Objective of the study

with the history and methods of logic, analysis and synthesis, statistic,

To systemlize and contribute to improvement of investment theory in

mathematical models and systems approach.

economic development, which defines the role of investment for growth and

- The method of historical materialism and the systems approach: The

economic development, contents, factors affecting investment to apply to the

research activities of mobilizion capital for development investment in

specific conditions of Vientiane.

Vientiane are conduted in a synchronous manner, associated with the

To analyse the situation of economic development investment in the
capital, to assesse strengths and weaknesses, to clarify the scientific basis and
practical, then propose the solutions for development investment in Vientiane’

circumstances, conditions and the particular stages.
- Statistical Methods: The thesis uses appropriate statistical data for
analysis of capital mobilization for Vientiane’s development investment.

economy in time to meet the requirements of industrialization and

- Comparison, reference methods: capital mobilization for Vientiane’s

modernization, to meet the requirements of international integration.

development investment are reviewed on the basis of a comparison of its

4. Object and scope of the research

impact on the growth and economic development of Vientiane through

Object of the research:

each stage of capital mobilization, as well as to raise funds for

The theory is focused on the scientific basis and practics in content of
investment activities of economic development, solutions for development
investment in Vientiane’s economy.

development investment of a number of countries in the region
6. New contributions of the thesis:


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- Interpretation theoretical basis on the development investment process and
factors affecting growth and economic development in Vientiane, given the
system of indicators measuring the efficiency of the economic development
investment process.

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CHAPTER 1: DEVELOPMENT INVESTMENT IN LOCAL ECONOMY
– THEORETICAL AND PRACTICAL BASIS
1.1.

The concepts of economic development investment in local

- Apply theories to measure and evaluate activities of economic development
investments in Vientiane

1.1.1. The concepts

- Propose solutions for Vientiane’s economic development from the
development investment by width to by depth, ensuring development
stability.

On the investor’s view: investment is activities using existing resources in order

7. Structure of the thesis

1.1.1.1 Investment

to increase the physical assets, human and intellectual resources to improve the
living standards of the population or to maintain operability of the assets and
available resources.

Besides the introduction and conclusion, the thesis is divided into 3 chapters:
- Chapter 1: Development investment in local economy – theoretical and
practical basis
- Chapter 2: Current situation of Vientiane’s economic development
investment period 2007-2011

- Chapter 3: Solutions for increasing economic development investment in
Vientiane to 2020.

1.1.1.2 Development investment
Before assessing the role development investment, we will study the concepts of
growth and economic development, namely:
- Economic growth:
Economic growth is the increase in the income of the economy in a given
period (usually a year). The increase is usually reflected in the scale and
speed.
Thus, the nature of that growth reflects the change in economy’s output.
- Economic Development:
Development is the process of increasing all aspects of the economy.
Economic development is seen as the process of change, both in terms of
quantity and quality, it incorporates the complete process of both economic
issues and social issues. Thus, Development is a long-term process and
decided by the economy’s internal factors.
1.1.1.3 Economic development investment
Based on the concept of investment above, economic development investment is
understood as spending activites of capital and other resources in the current
period in order to maintain and increase operational assets (the tangible l and
intangible physica assets) and other values of the economy, create more jobs and
improve the living conditions of the populations.

1.1.1.4 Economic development investment in local


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Economic development investment in local is spending activities of capital and

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1.1.2.4 Strengthening science and technology

other resources in each stage in order to properly exploit the local resources,

Technology is a central element of industrialization, investment is an important

increase the competitiveness of the local economy, contributing to increase

factor affecting the decision to innovate and develop science and technology. If

economic growth, create more jobs and improve the living conditions of the

the level of technology is obsolete, industrialization and modernization process

populations managed by the local authority.

will be difficult and not kept up with the technological level of the world so to

1.1.2. The impact of economic development investment on economic growth

be the barrier of the integration process

and development

1.1.2.5 Strengthening the economy’s competitiveness and export

1.1.2.1 The impact on aggregate supply and aggregate demand in the economy

Investment is not only to increase productivity but should focus on improving

The impact on aggregate demand: To create products for society, invesment

productivity, quality and reducing production costs. It need to encourage

first needed. Investment is a major factor in the overall proportion of the whole

investment in innovative technology projects, improving product quality and the

economy. According to the World Bank’s figure, investment nomarly

development of clean technologies.

representing 24 to 28% of the aggregate demand for all countries of the world.

1.1.2.6 Improving the quality of life for people

Changing increased investment (I) make aggregate demand (AD) increased

Economic development has always been associated with social security and
national security. State investment is priority on infrastructure, environment,

AD = C + I + G + X + M
The impact on aggregate supply:

policies of economic development programs: education, poverty reduction, rural

Aggregate supply in the economy is two main sources of supply, including in

water supply development, transport systems .

domestic and off shore. Domestic supply is represented by the following

1.2.

equation:

1.2.1. Orientation of economic development investment in the local authority
Orientation of economic development investment is first defined: objectives,

Q = F(K,L,T,R.....)
K: Capital

L: Labour

R: Resource

Capital sources for economic development investment

T: Technology

tasks and measures to attract local investment in a certain period of time (usually

Thus, increasing the size of investment is the direct reason of domestic supply’s

5 years, 10 years or longer). The objective of the economic development

increase, if the other factors are constant

investment strategy of a local authority is to decide the direction of long-term

1.1.2.2 The impact on economic development investment to growth

economic development investment, including: the system of investment point of

Expression of the relationship between development investment and economic

view, the investment directions, the inportant investment targets and policies.

growth shown in formula ICOR (Incremental Capital Output Ratio)

1.2.2. Creating a legal framework favorable to economic development

1.1.2.3 The impact on economic restructuring movement

investment in the local authority.

Investments have a significant impact on economic restructuring. Investments

The promulgation of legal documents locally derived from requirement of

contribute to economic restructuring consistent rules and social and economic

economic development investment in the local authority, but not contrary to the

development strategy of countries in each period, creating a new balance in the

laws of the State. The aim is to establish the legal environment for the economic

scope of national economies and between sectors, areas.

development investment activities in the framework, and create favorable
conditions for investment in economic development effectively. Property and


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benefits is the top concern of the participants in economic development

1.3.3. Foreign investment capital

investment

Foreign investment capital includes the entire accumulated by individuals,

The State’s views on economic development investment is the guiding ideology

enterprises, economic organizations, foreign governments that can be mobilized

across from determining the direction and goals, the defining the tasks and

for development investment of the host country.

policies.

1.3.4. Effect relationship between the two types of capital

1.2.3. Direction organization, operations of economic development

The relations between domestic capital and foreign capital exists a strictly

investment in the local authority

organic. They interact with each other, stimulate each other to create greater

- Organize the system of management object.

strength for the development of each country. It is important that we have some

- Organize and operate management subject.

information about this relationship, thereby enabling it to promote rapid and

- Operate the management subject and management object.

limiting effects of impairment, if any.

1.2.4. Checking, controlling and regulating the activities of economic
development investment in the local authority
This content includes the overall activities of the State in order to detect and
handle errors, crashes congestion problems, as well as finance, opportunities to
promote economic development investment in the local authority for the strong
growth in the right direction.
1.3.

Capital sources for economic development investment

1.3.1. The nature of economic development
Capital sources is the accumulated value expressed as transformed into

investment capital to meet the requirements of social development. Thus the
investment capital source is the accumulated savings or the economy can be
mobilized to put into the process of social reproduction. This is proved by the
classical economics, political economy and Marxist-Leninist modern economics.
1.3.2. Domestic investment capital source
Domestic investment capital is the accumulation of internal economy include
savings of residences, economic organizations, coporates and government
savings mobilized to social reproduction, including:
- State Funds: Including funds of the State budget, the State’s development
credit and development investment capital of state-owned enterprises.
- Capital sources from residential and private sector: Including savings of the
population and the accumulation of private enterprises, cooperatives.

- Domestic capital plays the decisive role.
- Foreign capital plays an important role.
1.4.

Basic contents of development investment

- Investment in additional inventory.
- Investment in human resource development.
- Starting the process of formation and implementation of investment,
contents of development investment.
- Investment in marketing activities.
- Investment in research and development activities of science and
technology.
1.5.

Contents of State management on economic development investment

- Orientation for economic development investment in the local authority
- Creation of a legal framework favorable for economic development
investment in the local authority
- To direct organization and operation of economic development investment
in the local authority
- Checking, controlling and regulating economic development investment in
the local authority
1.6.

The evaluation criteria of results and effective of economic

development investment in the local authority
1.6.1. The evaluation criteria of results of economic development investment
in the local authority
- The volume of implemeted investment capital


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- Fixed assets and production capacity increased
1.6.2. The evaluation criteria of effective of economic development investment
in the local authority
Economic effective
- The increase of production value compared with the entire capital to taking
effect during the period studied (HIv(GO))
- The increase of gross domestic product compared with the value of fixed
assets mobilized during the period studied (HF(GDP))
- The investment capital per needed to increase 1 unit of gross domestic
product (calculated for each locality, and the entire economy) or 1 unit of
added value (calculated for each sector)

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CHAPTER 2: CURRENT SITUATION OF VIENTIANE’S ECONOMIC
DEVELOPMENT INVESTMENT PERIOD 2007-2011
2.1. Economic - social overview of Vientiane
2.1.1 Geographical location
Vientiane is located in central Laos, within the range from 17°47’50 to 18°22’38
North latitude and from 102°5’40 to 103°09'37 5'40 east longitude, with a total
area of 3920 km² (about 1.7% of the country), the average population in 2009
was 795,159 people (about 13% of the population), density of about 203 persons

The social effect of development investment activities

/km². Population of Vientiane distributes very unevenly, while the suburban

1.7.

district with population density is very low as Sangthong 37people/km²,

Factors affecting investment in economic development investment in

the local authority

Naxaythong 49people/km², the district wrath of the densely populated

Development investment activities are affected by many economic factors (the

Chanthabuly high as up to 2,252 people/km², Sisattanak 2,018 people/km² ...

investment function is influenced by the major economic variables such as

Vientiane has currently 9 districts as Chanthabuly, Sikhottabong, Xaysettha,

interest rates, savings, income .... in which this variables also is a function of

Sisattanak, Naxaythong, Xaythany, Hatxaifong, Sangthong, Parknguem.

other variables.) and non-economic factors (political environment, institutions,

2.1.2 Natural Conditions

customs, culture and natural environment)

Topography

- Political environment, institutions, customs, culture

Vientiane is located between three sides by high mountains and the rest of the

- The effect of the natural environment and natural resources

Mekong River. The terrain consists of two distinct areas: The first is the plain

- The main economic factors

south of Vientiane delta, the NamNgum river basin, an area of approximately

Conclusion of Chapter 1

3,298 km², representing approximately 84.13% of the natural area
Climate and Hydrology

The climate is divided into two distinct seasons, the rainy season from May to
October and the dry season from November to April of next year.
Natural Resources
- Land Resources.
Vientiane’s land consists of 11 groups with 26 major soils in which soil is
Alisols largest group followed by 38.07% to 30.85% Acrisols.
- Mineral Resources.
The minerals include:


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Groups of fire minerals: gas, coal, peat

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now has more than 32 banks and bank branches, many credit institutions and

Group of metals: iron, about 4 source points. Gold has in many places but in

funds contributed by the residents on the basis of the operational management of

small quantities, manganese, lead and zinc.

the State Bank (the central bank).

Group of non-metallic substances: salt, anhydrite rock.

2.2 Vientiane’s investment situation in recent years
2.2.1 Divided by investment capital source

Group of building materials: clay types, sand - gravel ...

Group of gems: Tectit black stone jewelry (Silic).

Table 2.6: Investment capital for Economic development investment divided by
investment capital source period of 2007-2011 (current price)

2.1.3 Socio-economic conditions

Unit: Billion kip

Vientiane is a capital with the second largest population after SaVanNaKhet

and villages all, communal areas and remote areas, 99% of households have

Year
2007
2008
2009
2010
2011
Total (Bilion kip)
2.634,2
4.718,0 15.072,4
7.824,3
8.763,2
I. State capital
227,8
411,6
1.601,5
745,4
857,2

1. State budget
36,2
51,3
59,9
73,0
86,1
2. Capital from State Enterprises
191,6
360,3
1.541,5
672,3
771,0
II. Non-state sectors
443,2
599,5
935,8
262,3
407,6
1. Capital from Non-State Enterprises
393,3
412,8
750,0
197,5
240,9
2. Residents
49,9
186,7
185,8
64,8
166,7

III. Foreign capital
2.013,2
3.706,9 12.535,2
6.816,7
7.498,4
1. FDI
1.600,7
3.196,3 12.349,4
6.090,3
6.608,0
2. ODA
412,4
510,6
185,8
726,4
890,4
(Source: Vientiane’s plan for economic- social development - Seventh 5-year)

electricity. Electricity for production and service activities is 24/24 and constantly

2.2.2 The implementation of economic development investment by industry

increasing

The economic development investment of Vientiane were analyzed focusing on

province, in 2009 the total population of the capital, about 795 thousand people.
Labor force is about 415 thousand people, representing 52% of the population of
the city. Labour is working in the national ecomomic sectoers is about 75%.
Technical infrastructure

- The transport system in the area, including waterways, road and air travel is
very convenient for economic exchange with the region
- Power supply
Power supply for Vientiane is now the national power grid through
substations Phon Toong, Vientiane. Currently, the grid has to 100% of communes

three main areas: industry, agriculture and services.

- Water supply and drainage

Table 2.9: Investmen capital by industry sector of Vientiane

Vientiane use surface water from the Mekong River and Ngum river is mostly

Unit: Billion kip

sip. And other districts are mostly used well water, only a few of the small water
2007

system capacity to serve the residential areas of the district center.

currently use 4 G

2009

2010

2011

T ng s

Industry

- Telecommunication system
Laos

2008

telecom systems. In general, post offices and

telecommunications are responsive to the needs of communication, issued in local
newspapers, but still take advantage of the capacity of the system above.

919,4

1.749,4

5.352,2 3.695,5

3.067,1 14.783,6

37,9%

agriculture

598,8

1.120,0

2.500,0 1.723,0

2.015,5

7.957,3

20,4%

services

1.116,1

1.848,6

7.220,2 2.405,8

3.680,5 16.271,2

41,7%

Total

2.634,2

4.718,0 15.072,4 7.824,3

8.763,2 39.012,1 100,0%

(Source: Vientiane’s plan for economic- social development - Seventh 5-year)
- The system of financial - banks
Structure of budget has been gradually improved for more consistent,

using budget is managed tight, ensuring expenses is right purposes. The Capital

2.3 Situation of economic development investment management activities
2.3.1 Established the orientation of economic development investment


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In recent years, the government of the Capital has many activities to guide

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in the following table:

economic development investment activities. The Capital was distinguished

Table 2.22: Some evaluation criteria and performance of Vientiane’s

business functions of the enterprises with the state management function in

investment activities period 2007 - 2011

shaping economic development investment.

Unit : Billion Kip

2.3.2 The investment environment is more open and built more confidence

Ord.

Criteria

2007

2008

2009

2010

2011

The amount of economic development investment of the city has increased

1

GDP real

several times compared with the previous period,

2

∆ GDP

The investment environment is more open

3

Total Investment

2.3.3 Implemented support and regulated economic development investment

4

HIv(GDP)

0,15

0,12

0,09

0,28

0,05

5

ICOR(GDP)

2,13

3,01

9,73

3,25

2,54

Over time, the Capital also implemented basic support functions and regulated
economic development investment. The Capital promptly provided information

10.462,68 12.298,56 12.977,44 15.397,74 17.199,28
698,22

1.835,88

678,88

4.718,00 15.072,40

7.824,30

2.420,30

1.801,54

8.763,20 39.012,10

(Source: Vientiane’s plan for economic- social development - Seventh 5-year
and the author’s caculation)

on laws and policies of the state government, the competition information, the
business environment for enterprises in the Capital.

Evaluation of social-economic efficiency Vientiane’s economic development

2.3.4 Inspection, cheking

investments

In recent years, the Capital has also increased inspections, checking the

Regarding to social- economic efficiency and human development of the

economic development investment activities in the Capital. Every year, the

Capital: rapid economic growth and constantly had created favorable conditions

Capital has plan of inspections and checking the areas under their management.

for progress in implementing the goals of poverty reduction in Vientiane.

2.4 Assessment of the situation of Vientiane’s economic development

Poverty rate has declined rapidly in the reform era, the poverty rate from 46% to

investment period 2007 – 2012

27.6% during this period. Along with poverty redution, income per capita in

2.4.1 Investment result and effect

Vientiane has been rapid increasing in the reform era. GDP per capita rose from

The impact on economic restructuring movement

Vientiane 298 USD (1993) to 1800 USD (2011).

As of 2011, Vientiane’s economic structure has achieved certain success, there

2.4.2 The limitations and causes

are many new industrial sectors established and developped. In which, sectors

2.4.2.1 The limitations

such as manufacturing large proportion of food, canned foods and 41.54%,

Despite many attempts, Vientiane’s economic development has not achieved the

followed by industry production facilities and spare parts, repair accounted for

desired results and the performance. We can see some of the following

15.81%, the production of metal products 10.56 %, the textile industry is not

inadequacies:

small proportion of 9.90%. Thus the proportion of industry development are

a) investment capital structure is irrational

small and also very modest

b) Investment in science and technology has not been paid enough

An indicator of outcome assessment and effective Vientiane’s

economic

attention

development investment

c) The weak infrastructure and low production efficiency

To evaluate the results and effectiveness, we can use indicators such as GDP

d) The management of the state though improved but still some limited

increases, investment apital promoting effects HIV, ICOR... indicators are shown

2.3.2.2 Causes and Challenges


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Vientiane’s development Investment has not achieved the desired requirements
derived from the following main reasons:
a) The difficulties of the human resources
b) The low capacity of the enterprises in Vientiane led to the competitiveness
of commodities low and unstable

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CHAPTER 3: SOLUTIONS TO STRENGTHEN ECONOMIC
DEVELOPMENT INVESTMENT IN VIENTIANE BY 2020
3.1. The perspective and orientation of economic development investment of
Vientiane

c) The supports and services have still not met the development requirements

3.1.1. The context of domestic and international development

d) Management and administration capacity is limited

The international context

e) State policies on management development investment is still insufficient

Economic globalization is an objective trend and is spreading. No countries that

f) Investment capital for development is lack and limited

can stand apart from that without affected. Assigning and international labor

Conclusion of Chapter 2

cooperation is also developing vigorously and on a sweeping in all areas of
economic and socio-cultural.
Domestic context
Lao has rich natural resources, especially hydropower, mineral resources such as
gold, tin, iron, gypsum, potash, coal ... An area of natural forest is big and rich.
Lao has a stable political, high economic growth and step by step carrying the
international economic integration. Market mechanism is improved. The
international and regional cooperation increasingly is expanding.
3.1.2. The perspective of economic development investment in next future.
− Developing the capital Vientiane requested to have foresight, towards
modern civilization but retains the value of capital with a clean green
environment and bring specific cultural identity of the tribes of Lao.
− Ensure minimizing the distance difference between the Vientiane capital

with capital of other countries in the region.
− Maintain and increase gradually to the top of Vientiane in socio-economic
development of the country, especially for the Central and Northern Lao.
− Step by step to modernize the economic structure. Creating more powerful
shift of economic structure in the direction of promoting rapid development
of the service sector, especially tourism, and commerce, the development of
the industry.
− Fastening to economic growth with equity, social progress, improve the
material life, people's cultural life, making poverty reduction program,


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reducing the disparity between rural, urban areas with mountains, creating

Increased service: 13.56%

the harmonious development between regions.

The growth rate of the GDP between 2016-2020 is 10%-11% per year

− Developing a stable society in which people have to be interested, and also
the purpose for development.
− Incorporate synchronization between production and development with the

Of which: agriculture increased 9.4%
Industry: 13.5%
The service increase: 12.7%

development of infrastructures on the regions, including rural areas and

The economic structure in 2015:

mountain.

Agriculture-industry-services: 17%-47%-36%

− Make sustainable economic development towards protection, regeneration,

The economic structure in 2020:

and enrich forest resources, the resource of land and water resources,

Agriculture-industry-services: 13%-45%-42%

protection of the environment. Protecting and promoting more cultural

Coefficient of ICOR period 2011-2015 and the 2016-2020 period and 3.25

traditions, particularities of Vientiane as well as of the entire country.

and 4.1 respectively.

− Closely match between economic development and consolidating security

Pushing foreign economic relations. Establishing some sectors and main

defense, strengthening the political system and a strong administrative

export products. Striving export turnover of about 200 million US dollars by

background.

2015, 2020 is over 1,100 million. Make sure the average export growth rate in

The Mission of the country, the region with the capital Vientiane in next time

the 2006-2010 period is 30-35%, the period 2011-2020 is 19-23%.

Vientiane as the largest economic center of the country must have a steady

Striving for budget mobilization rate of GDP by 2015 is 40-45% in 2020

average annual GDP is higher than the national average of 1.3-1.5 times, i.e.

and is over 50%. Create a steady source of revenue to not only ensure the

must reach 11-12% per year for the five-year period, the speed increase as is the

resources spent on development of the capital but also contribute more and more

duty of the country set off for Vientiane (if not done are shrinking the role of

to the central budget.

Vientiane, take the lead entice other local development).

Controlling inflation at 6% under the level where inflation in industry

3.1.3. The goal of Vientiane’s economic development

under 5%, in agriculture under 4%, in the service sector under 6%.

The general objective of socio-economic development in the capital Vientiane is

Social goals

building it became a center of economy, politics and culture with the highest

The population in 2015 of about 908 thousand and 2020 is 1,158 thousand

development; specific targets have done until 2015 to 2020 are as follows:

(up 320 thousand of people so in 2010) the population growth rate averaged

The primary economic objectives

between 2011-2020 is 3.29%

GDP per capita reached 3,403, 1 USD in 2015, higher than the average of 2.3
times and about 5,734, 2 USD in 2020, higher than the national average of 2.7
times.
The average growth rate of the GDP between 2011-2015 is 11%-12% per year.
Of which: agriculture: 10.30%
Industry: 14%

Raising the General indicator of human resource development (HDI) from
the current 0.55 to 0.65 0.60 by 2015 and 2020
Focus on developing the cultural and sports activities form the centers of

entertainment to attract youths to healthy cultural activities.
Other targets


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Ensuring social security and defense, minimizing the social evils as the

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Lao is integrating into the world economy, especially ASEAN. The

basis for stability and economic development, create to firmly safety for the

international market in the years to come could take place more vibrant, the flow

sovereignty and independence of the country.

of investment capital, ODA, FDI is there are showing signs of recovery.

Greening the barren hills, the forest cover rate increased from 43% in 2002
to about 56% 60.7% between 2015 and 2020. Upgrading quality of coverage.
Ensuring clean environment for both urban and rural areas
Make Suring the speed of technological innovation reaches 20% in 2015
and 25% in 2020. Striving to some areas of science and technology of Vientiane
reached average levels of the countries in the region by 2020.
3.2. The SWOT analysis in Vientiane’s economic development
3.2.1. Strengths
The impact from the capital
The policies are implemented for business, attracting investment and

3.2.2. The weakness

The growth rate in the past years a quite high but sustainable, quality
growth do not meet the needs of social development. The life of every
population is still low, the difficulties on the economy, culture, social problems
not yet resolved in short time.
The infrastructure system of the capital was invested to build but not yet
fully in sync, and modern.
Human resources is abundant but at low levels. State officer is still in low
management level.
Sate management about investment in the capital of Vientiane is not

infrastructure policy, land, State enterprise reform, administrative reforms are

professional, yet, still in the early stages of the process of learning.

effective.

3.2.3. The opportunities

The capital has many natural resources, mineral resources and land
resources untapped, especially in tourist resources.
Have the manpower and labor prices and reasonable compared to other
provinces in the country.
The impact of external factors
In addition to the geographical location of the capital Vientiane borders
Nong Khai province of Thailand in the friendship bridge over the Mekong River
and other nearby provinces, Vientiane has the opportunity to exploit the
advantages of the development of the surrounding areas.
The situation of economic, social and political stability and continuation of
growth, the economic growth rate could reach 8.5% per annum, the
accumulation of economic sectors increased.

The system policy mechanisms continue to be reformed, more openness,
investment capital from the budget for economic development _ society is
maintained.

Lao is in the process of integration into the world economy, regional, it
welcomes to all economic sectors of the country on such investment, Vientiane,
the capital of Lao, will have the opportunity to take over the investment sources.
The capital comes after other should learn a lot from the experience of
other capitals in the region and the world.
Private businesses are increasing rapidly, big investors of the province or of
other regions will also participate in the process.
The financial system, banks are in the process of expanding, and implement
the Government's policy should are priorities for the people to do business.
3.2.4. The challenges
The gap in economic development capital Vientiane with the other
province and the region is still far. The mission becomes the spearhead for other
neighboring provinces to develop is very heavily because of low development
point of the capital Vientiane.
Poverty rate of the capital Vientiane also is relatively high.


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Different systems between the provinces in the competition to attract
investment, commerce will impact the flow of investment capital into the

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3.3.2 Restructuring economic development investment in Vientiane in order to
increase effective State management of economic development investment.
To improve the efficiency of state management of investment capital,

moving some resources such as high-quality labor, finances...
The crisis of energy on a global scale can last longer, leading to the risk of

economic development, while improving the quality of growth and sustainable

global crises in some areas.

development need to restructure economic development investment capital by

3.3. A number of solutions to increase Vientiane’s development investment

focusing on industry structure, the structure and composition of economic

in future.

restructuring associated with the paradigm shift towards market growth.

3.3.1. The solution to improve the system of State management policy on

Orientation focused on a number of key industries, with breakthrough.

economic development investment of Vientiane.

- Focus on the development of key industries, greater revenue generation and

The system of policy in economic development investment needs to follow
requirements:
- It is necessary to focus investment resources, those in favor of the
mechanism, facilitate economic development investments. Especially the
policies to attract investment capital; the development regulation of

investment economic development.
- Vientiane is the capital of Lao therefore the economic development
investment in Vientiane is signification in economic political, social and

industrial development to both create jobs while improving incomes for
workers as well as increased capital revenues.
- Increase investment in agricultural produce clean, high-tech agricultural
products for export.
- Increase investment in economic development should focus on investment in
economic development of the service sector.
3.3.3 Solution to maximum mobilization of investment capital for Vientiane’s
economic development

security defense areas.

For economic development, the capital city of Vientiane needed huge

- The policy must be derived from the market principles and rules of market

amounts of investment capital. As predicted by 2020 the amount of investment

economy, raising the strength of the economic sectors involved in the

capital for the country is about 24,876 billion kip, including a great proportion

development.

for the capital Vientiane. Proportion investment of the GDP is very high (over

− The policy must create mechanisms to encourage the development of the

pattern, economic cooperation between Vientiane with other localities
throughout the country.
- Central Government should have policies to decentralize economic

40%). Capital structure shows the dependence on foreign investors (mostly
FDI).
To achieve growth on average every year to 2015 is 12% per year, then
the total capital needs during the 2011-2015 should be over 53,786 billion Kip

management appropriate to encourage proactive Vientiane, positive

(in current prices).

investment in developing the local economy.

3.3.4 Solution to operating organization, inspecting and controlling economic

- Vientiane should have policies to encourage enterprises to improve product

development investment.

and service quality, while expanding portfolio of industrial products and

The problem posed for the administration of that time to promulgate the

services, new investment products attracting strong investment in economic

regulation, specific guidance is about procedures, time solving issues related to

development.

activities investment in economic development. Strengthening inspection and


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control of the implementation of policy, strategy, planning, and investment

THE CONCLUSION

planning and economic development are complementary measures, as well as
adjust the content timely to meet requirements in the development stages.

The Thesis studies the factors that impact the growth and economic

Rearrange the appropriate apparatus, streamlined to avoid duplication and

development in the capital Vientiane and point out elements: the political

ineffective today; organizations manage enterprise investment system.

environment, institutions, customs, and culture; the natural environment and
natural resources.
The thesis puts forward the target of evaluation results and the efficiency
of investment in local economic development, such as: the GDP growth, the
impact of investment capital, ICOR.
The thesis proposes solutions to economic development investment in
Vientiane towards stable and sustainable development, in particular the
following:

Improving the system of State management policy in economic
development investment of Vientiane includes: Incentive policies, attract
investment capital for economic development; fiscal policy; resource protection
policy environment and social factors in economic development investments.
Restructure economic development investment Vientiane in order to focus
on industry structure, regional structure and economic sectors (precise
mechanics, mechanic, electronics, industrial equipment and supporting) increase
effective State management of economic development investment.
Organizational structure and management personnel for economic
development investment; Executive reviewed the implementation plan.
Enhance the quality of human resources in support of investment in
economic development; Increase the capacity of production and business,
international economic integration for capital businesses.