La kannika saignasane sum

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INTRODUCTION

the Lao PDR's economy, Industrial development of Laos. Based on that research goal, the thesis goes to the
following research question:
Firstly, what is the current situation of Lao PDR's industrial development in the period of 20062015?
Secondly, what are the solutions based on the results of the analysis of the situation of development
investment industrialization of Lao PDR to enhance
3. Subjects and scope of research
* Subjects of research: The thesis studies the theoretical and practical issues of industrial
development investment, on the basis of which the investment evaluation Industry-based investment results
and reviews, looking back on the investment process.
* Scope of research: The thesis analyzes the situation of industrial development investment of Lao
PDR through the data of the period of 2006 - 2015. From the current situation, there are some main solutions
to increase the development investment industry to 2025.industrial development investment of Lao PDR.
4. Research-Methodology
To develop the topic, the researcher uses the following main research methods:
• Secondary Data Collection Methods
Authors Overview of research works related to research topics from sources such as books, textbooks,
journals, and theses, dissertations ... in and outside the country. The study also collects secondary data from
reports of ministries and agencies such as Ministry of Planning and Investment, Ministry of Industry and
Trade of Lao PDR.
Primary data collection (practical approach)
In addition to secondary information that can be collected from a variety of sources, the focus is on
the collection. Primary information, considered as an important and reliable source for conducting research.
This information is collected through surveys, fact sheets, and expert opinion gatherings on specialized
research topics. The author will conduct interviews and interviews directly at the Ministry of Planning and
Investment, Ministry of Industry and Trade, Industrial Park Management Board of Lao PDR.

Methods of data collection and analysis
Descriptive statistics methods, aggregation methods, economic analysis, comparative research methods,
logical analysis of collected documents are, survey methods, statistics. The study also uses SPSS 21.0 software to
assist in the implementation of statistical analysis
5. New contributions of the thesis
Systematization of theoretical issues on industrial development investment for market economy
To develop solutions to promote industrial development investment, strive to achieve the
development goals and economic restructuring of the Lao PDR
6. Structure of the thesis
In addition to the introduction, conclusion, annex and bibliography, the thesis is divided into four
chapters:
Chapter 1: Overview of Research related to the topic
Chapter 2: Theoretical Basis for Industrial Development Investment.
Chapter 3: The Situation of Investment in Industrial Development in Lao PDR for the Period 2006 2015.
Chapter 4: Solutions to promote industrial development investment in Lao PDR

1. Rationale
In the context of international economic integration as deep and broad as the countries of the world, the
Lao People's Democratic Republic is not out of the trend. Investment in industrial development has become an
indispensable trend, thereby stimulating the overall development of the economy as well as creating
momentum to support the development of other industries. In addition, industrial production with existing
products represents a country's class, as in the manufacture of modern products it converges in that the synergy
of a nation- natural resources, the quality of human resources, the level of science and technology to the skills
of each laborer in that society. And it has also proven, most nations with modern industrial production are
powerful nations. Therefore, investment in industrial development plays a very important role in the socioeconomic development of nations and is always attached to the importance of the nations.
Recognizing the important role and position of industrial development, the Lao People's Democratic
Republic (Lao People's Democratic Republic) has made a number of policies and measures to implement the
process of industrialization. In particular, improving the market economy, improving the banking system,
equitising state-owned enterprises, developing the private sector, etc…
However, besides the results achieved on the development of Laos, the country's industrial activities

still reveal the weakness of investment in industrial development, have yet to fully develop the advantages of
the country the country's industry, Laos has not been appreciated by the international friends. The main cause
of the situation, partly due the shortcomings in policy making and management organization industrial
development of Lao PDR, but mainly due to weaknesses in defining industrial development strategies from
the perspective of comparative advantage, Evaluation determines the advantages in industrial development.
For the Republic of Lao People's Democratic, national income is still low, so the savings accruing to
capital development remains limited. In recent years, thanks to appropriate incentives, the industry has raised a
sizeable amount of capital relative to other sectors for development investment. However, the use of the capital is
still to be lost, big waste; Effective investment reached a low and tends to decline.
Development investment is an economic activity that plays an important role in the socio-economic
development process. It is the engine of economic growth, socio-economic development and the creation of
partnerships. It is beneficial to social politics. An economy will not survive and develop without investment.
Investment development is a strategic task, a key solution to achieve high-growth, sustainable economic
development goals for each country. In each period, investment needs are often set according to the
development requirements of each sector or field. Therefore, the attraction of investment for industrial
development is one of the priorities of the current Lao Party and State.
The research on the status of industrial development investment in Lao PDR in recent years,
especially in the period 2006-2015, has not been studied in Laos and other countries. This is the research gap
that needs to be filled, and it is clear that the study of the situation of industrial development investment in
Lao PDR is to find solutions to promote the industrialization of the Lao PDR. Continuous development in
the context of regional and international integration is a pressing and meaningful requirement that is both
theoretical and practical.
The research on the status of industrial investment and development of of Laos in recent years,
especially in the 2006-2015 periods, has not been studied in Laos and other countries attach importance. This
is the research gaps that need to be filled, and it is clear that the study status of industrial investment and
development in the country of Laos from which to seek out solutions to promote the country's industry of
Laos to continue development in context regional and international integration is a pressing requirement and
actually mean both reasoning and practices.
2. Objectives
The study clarifies the nature and role of industrial development investment in the economy in general

and in Lao PDR. Analyze the current situation and determine the level of investment assurance for Lao PDR's
industrial development, thereby drawing positive results and limitations as a basis for proposing solutions to boost

CHAPTER 1: OVERVIEW OF RESEARCH PROJECTS CONCERNING SUBJECT MATERIALS
1.1. Overview of research in the world related to the topic
Investment in industrial development not only receives the attention of researchers but also of
policymakers because of the location and the role of industrial development investment in the socioeconomic development of the countries, in particular, for Lao PDR, investment in industrial development is


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an urgent need set out in the process, to realize the objective of economic restructuring. In recent years, the
National Assembly, the Government as well as the ministries and branches of the People's Committees of the
provinces in the country have spent a lot of time and effort to find effective solutions to invest in industrial
development. There are studies that have been carried out with different perspectives on the study of
industrial development investment on a national scale:

Based on the economic uses of products, including the production of materials belonging to group A,
the products being the consumption materials of group B

By F. Pererx (1950) in research about Theory “Development Pole” had pointed out that, a region can
not grow the economy steadily in all points of it.There are fast-growing point while in other spots again slow
growing or stagnant.The fast-growing point is the centers have the advantage compared to the whole region.
Thus, can be focus on the impact on key areas as accelerate the economic growth of the territory.That is,
industry and services have a large role for the growth of the region and accompanied by growth point is a
key industry. The key industry development, the distribution territories are also developed.

Based on the method object affects labor: industrial exploitation and processing industry

Based on the form of ownership: Industrial sectors in the state economic sector, industries in the
non-state economic sector and industries in the foreign-invested economic sector
2.1.2. The role of industry in the economy
Firstly, industrial orientation of production organization and management organization for economic
sectors
Secondly, the industry facilitates materialization to meet the requirements of refining and technical
equipment for all national economic sectors.
Third, industry is a key factor contributing to the country's socio-economic development.

1.2. Overview of research projects in Laos
At present, there are many researches on the issue of investment in industrial development in the
world; separate with Lao PDR has few research projects and focus on investment in industrial development.
For the research by KhamphouthongVichithlasy (2013), the author has codified the basic theoretical issues of
development investment and capital mobilization for development investment in a locality, the thesis was
studied and analyzes the situation of raising capital for investment development in three main sources:The
State investment capital, investment capital of residential area and foreign investment capital. The thesis
research has contributed to affirming the achievements and simultaneously it also pointed out the limitations
and and shortcomings of the mobilization of development invested in Vientiane and presents the orientation
point, identifying capital needs for the development investment of the Vientiane capital
1.3. Conclusions drawn from the research overview
The research work in the country as well as abroad with research views, research background,
research methodology and different approaches have made great contributions to the study of industrial
development investment. Even so, most studies have focus on policies to attract investment and foreign
direct investment with investment measures to improve the investment environment in Laos.However, there
are no studies about industrial investment in the development of Laos approach from theoretical research to
apply to the country. Studies have yet to fully factor the investment impact of industrial development of the
country as well as yet to how to assess the validity, efficiency of industrial investment and development
within the National.There has been no research on the development of industrial investment in the level of
the entire economy oriented research on the effect of each content to invest in industrial development of the
country, the influential factors and solutions to perfect investment in accordance with the reality of the

country, developing advantageous industries of the country to contribute to the process of restructuring of
economic sectors in Laos.Therefore, the researcher chose the thesis “Investment and Development
Industrial in Lao PDR" to ensure the necessity of research.
CHAPTER 2:
GENERAL ISSUES ON INVESTMENT AND INDUSTRIAL DEVELOPMENT
2.1. Industry and the role of industry in the economy
2.1.1. The concept, characteristics and classification of industry
The industry is a large economic sector in the field of material production, including a system for the
production of narrow specialization, each producing narrow specialization that is included with many
business units in many different forms category. And in terms of technical and organizational form of
production, the industry is concretized by different concepts: industrial and industrial consumption, heavy
industry and light industry, large industry and small and medium industry, industry located in agriculture,
rural industry, state industry and non-state industry.
On the classification of industries: Depending on the different bases that divide into different
industries:

Fourthly, the development of the industry promotes change in social consciousness and lifestyles.
2.2. Role and content of industrial development investment
2.2.1. The concept and role of industrial development investment
Industrial development investment is the process of transforming capital into capital to create the
basic elements of production and business industrial production, creation of material-technical facilities, new
production-business capacity, procurement of equipment and machinery, construction of buildings,
architectural works and it is related to the promotion of the effect of facilities provided by industrial
development investment.
Investment both affects the growth rate and affects the quality of growth of the industry. Increasing
investment capital and using reasonable investment capital are important factors contributing to improving
investment efficiency, increased aggregate factor productivity, impact on economic restructuring in the
direction of industrialization and modernization, to improve the competitiveness of the economy ... thus
improving the quality of growth.
Investment and industrial development with the economic restructuring is the structure of the whole

of the components of the economy which are closely related to one another, expressed both in quality and
quantity, depending on the objectives of the economy.
Investment and industrial development with the enhancement of science and technology capacity is
an important factor influencing the decision on the renewal and development of science and technology of a
business and nation. Technology includes the basic elements: hardware (machinery); software (texts,
documents, secrets ...) human factors (management skills, experience); Organizational elements (institutions,
organizational methods ...). For technology, it is necessary to invest in the constituent elements
2.2.2. Contents of investment activity of industrial development
To invest in the development of technical infrastructure and construction, procurement of machinery
in the industry
To invest in research and development scientific and technological activities (R & D)
To invest in human resources development
To invest in industrial development according to groups of industries
2.3. Investment capital for industrial development
Capital sources for investment in industrial development include: domestic capital sources (state
capital sources, non-state capital sources) and foreign capital sources (official development assistance,
foreign direct investment capital, credit capital from international commercial banks and international capital
markets).
2.4. Indicators evaluating the results and efficiency of industrial development and investment
2.4.1. The result of investment and industrial development activities


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The result of investment activities in industrial development is reflected in the amount of capital
invested has been made, in the fixed assets are mobilized or production capacity increased business service
industry

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CHAPTER 3
THE REALITY FOR INVESTMENT INDUSTRIAL DEVELOPMENT IN LAO PDR FOR

THE PERIOD 2006 - 2015

2.4.2. Effectiveness of investment activities in industrial development
The performance of industrial development investment is reflected in economic efficiency
(Indicators for assessing the economic efficiency of investment activities at the sector level such as the
increase in production value with all the capital invested in the period, the increase in value added compared
with the whole investment capital to bring into play in the research period ...), social efficiency (such as the
number of employed people due to investment in industrial development, ...)

3.1. The favorable conditions, difficulties and policies of Lao PDR affect the investment in industrial
development

2.5. Factors affecting investment in industrial development

There are a number of important mines on a large scale, which may allow the development of basic
industries such as steel, copper, aluminum, cement.Besides, the Lao PDR has abundant natural resources,
especially hydropower, mineral resources such as gold, gypsum, tin, iron, potassium, coal ... natural forest
area is bigger, rich and varies.

Some factors that affect the investment in industrial development of Lao PDR are discussed as
follows:
First, the potential and resources for industrial development

Lao PDR has great potential a forestation industrial tree planting, forests to make paper or
woodworking and wood products, The mineral resources in Laos are particularly rich such as Copper,
bauxite, copper, kaolin, gold, lead, zinc, quartz, gypsum, limestone ...

Third, the technological advancement factor

Lao PDR has policies to promote the development of the economy in general and the development

of the industry in particular through the medium-term (five-year) plans. And there are adjustments to meet
the requirements of economic integration of Lao PDR with international.

Fourth, industrial promotion and investment promotion

3.2. Situation of investment in industrial development of Lao People's Democratic Republic

Fifth, the growth of the industry

Statistics show that domestic capital accounts for a smaller share of foreign capital, but from 2010 to
2015, the percentages of domestic capital tend to increase.

Second, the legal and policy system

2.6. Experiences in investment in industrial development of some countries and lessons for LAO
In this thesis, PhD students have studied the experiences of industrial development investment of
some countries including: Experience of development investment of Vietnam, experience of investment in
industrial development of Korea, Malaysia's investment in industrial development, Thailand's industrial
development investment experience, from which to research the achievements and constraints in their
industrial development investments to draw lessons for the Lao PDR.


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Unit: %

100
80

40

Vốn trong nước

20

Vốn nước ngoài
2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Figure 3.1: Structure of investment capital for industrial development in 2006-2015
Source: Lao's General Statistics Office 2015
Foreign direct investment in Laos is encouraged in the mining industry, in the construction of

industrial infrastructure and in the processing industry. Most are located in the industry and operate under the
Foreign Investment Law.
Foreign capital investment in Laos in recent years reflects the openness of investment attraction,
investor psychology, financial and economic situation in the region and the world. In the early years of the
"open" period, foreign investors were eager to enter Laos, in order to exploit new and attractive business
opportunities. This is the time when Laos attracted many investment projects.
In the period of 2006 - 2015, Lao PDR has applied many new policies and management
mechanisms, with many efforts in mobilizing and investment capital for development of all economic
sectors, both at domestic and abroad. . Therefore, the annual development capital is constantly increasing.
Funds mobilized to invest more and more diversified.The result is already implemented major projects,
formed the industrial park - EPZs focus, the traditional villages are restored and identified industries critical
that countries with comparative advantages ...Social infrastructure is focused on investment and significantly
improved, paving the necessary and important new development period, allowing the speed to maintain high
economic growth in the coming period.
In the nine years from 2006 to 2015, the total capital of Laos reached 805266.60 billion kip, since
2006 has a capital of 19921.59 billion kip in 2010 increased to 70419.69 billion kip compared with 2006
increased to 253 %, by 2015, continued to rise to achieve 116779.23 billion kip.
Table 3.3: Investment capital of Laos during 2006 - 2015
Unit: Billion and%
Years

II. Non-state economic sectors (billion)
Proportion (%)
1. Non-state enterprises (billion kips)
2. People of self-investment (billion
kips)
III.Foreign capital (billion kip)
Proportion (%)

51,956.89

10,416.59
46,754.2
1.74

60,101.46
11,025.49
49,211.6
1.99

63,169.79
12,217.59
53,668.9
1.91

71,916.22
14,458.26
55,126.2
2.08

73,102.38
16,681.47
58,352.68
2.00

By 2015, all of Laos's investment capital will grow continuously and remarkably. The investment
structure has also changed positively; the capital of both the non-state and foreign investors has increased
continuously. By 2014, the state investment capital will reach 26,995.38 billion kip compared to the state
investment capital in 2010 which is about 57%. Thus, governments have to invest more in the state capital
each year.

0

I. State capital
(billion kips)
Proportion (%)
1. Investment capital from the State
budget
2. Capital of SOEs

43,103.89
10,282.49
43,296.9
1.63

Source: Lao's Ministry of Planning and Investment, 2015

60

Total investment capital (billion kips)
Proportion (%)

1. FDI (billion kips)
2. ODA capital (billion kipps)
Laos's GDP at current prices
ICOR

2010

2011

2012

2013

2014

2015

70,419.69

81,406.80

97,877.34

102,293.91

114,746.46

116,779,23

100
17,033.31

100
19,033.32

100
26,750.39

100

26,906.53

100
28,371.98

100
26,995.38

24.19
1,577.04

23.38
1,608.16

27.33
1,698.28

26.30
1,770.40

24.73
1,901.52

23.12
1,987.63

15,456.27
5,960.79

17,425.16

6,261.03

25,052.11
6,538.23

25,136.13
6,681.15

26,470.46
7,087.14

25,007.75
7,314.66

8.46
5,004.51

7.69

6.68

6.53

6.18

6.26

956.28

5,276.44

984.59

5,479.66
1,058.57

5,497.90
1,183.45

5,829.65
1,257.49

6,018.08
1,296.58

53,386.38

62,373.48

71,126.95

75,387.38

86,374.48

89,783.85

75.81

76.62

72.67

73.70

75.27

76.88

In the period 2006-2015, Lao PDR is gradually entering the period of stable and economic
development, the revenue from the country is quite stable, the structure of capital sources between the
country and abroad is improved,have been able to proactively arrange comprehensive development among
sectors, regions, and pay more attention to the development of remote areas, the investment participation of
domestic private investors is also richer
State investment capital is given priority to invest in the development of the social and economic
infrastructure system, to build centers for clusters, irrigation, and rural power grids, medical, cultural and
educational systems.
In 2006 domestic investment capital of Laos reached 19921.59 billion kip and tended to increase
each year as the table above. It is expected to increase to 123573.57 billion kip by 2015. In 2010, the state
investment capital reached 17033.31 billion kip, up 118% compared to 2006. The proportion of state capital
in the total social capital increased from 39.13% in 2006, up to 24, 19% in 2010. The most remarkable of the
state investment in 2009 was about 37212.95 billion kip with the proportion of 27.43%, this is the year with
the highest investment capital of the state because this year the Government of the People's Democratic
Republic Laos is investing in the infrastructure to master the 25th SEAGAME.
Meanwhile, foreign direct investment (FDI) in Lao PDR increased rapidly from 12,124.95
billion kip in 2006 to 53386.38 billion kip in 2010, and continued to grow at 86374, 48 in 2014. But in
2009 alone increased most significantly reached about 98438.47 billion kip because this year the Lao
PDR has been investing heavily in the development of social and economic especially in the service
sector and infrastructure. Because, Laos is focusing on the 25th SEAGAME publicity so, this is the time
to attract investors in Lao PDR. Direct investment accounted for an overwhelming share of total foreign
investment in Laos by 44% for the period 2006 - 2014, and in 2014 alone accounted for 62.67%, mainly

in the form of foreign invested enterprises, most concentrated in the industry
3.3. Assess the achievements and limitations of industrial investment and development of the Lao
People's Democratic Republic for 2006-2015
3.3.1. Promoting the economic structure has a positive change in the direction of industrialization and
modernization
The economic structure of Lao PDR has been shifted in a positive way: The proportion of agricultural
sector decreased gradually from 2006 to 2015 with the proportion from 30.3% to 22.6%.
The proportion of the industry tends to increase in 2006-2015. In general, this is to keep the economic
structure shift in the right direction and in line with the economic development orientation of Laos. The
economic transition is the result of adjusting the structure of direct investment in sectors and economic sectors,
contributing to the production capacity of equipment renewal, process technologies in the industry, components
and economic areas.


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Table 3.12: Economic structure in GDP by 3 regions

and decreased from 12.63% in 2006 to 9.26% in FY2010. After that, the rate of added value tends to increase
year by year 2015.
Construction industry has increased rate abnormally and from 4.50% in 2006, up to 5.18% in 2010,
the rate of construction industry increases tend to increase each year to 2015.

Period 2006 - 2015

Unit: %
Divide
Agriculture

Industrial
Service
30.3
27.9
35.3
31.2
26.5
35.8
30.1
25.9
37.4
29.1
28.1
36.9
28.8
28.0
37.2
27.2
30.6
36.4
24.3
35.0
34.9
23.5
33.2
37.4
23.1
32.4
37.9
22.6

33.1
38.1
Source: Lao’s General Statistics Office 2015

Total

2006
2007
2008
2009
2010
2011
2012
2013
2014
2015

100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00
100,00

3.3.2. Increased restructuring the industry classification
In the period of 2006-2015, the structure of products and the structure of Lao industries has shifted

towards industrialization and modernization, moving from an introverted, closed-door economy. Export to
the export oriented industry, initially taking part in international and regional competition.The internal
structure of the industry according to the shifting production value is as follows
Table 3.13: Industrial Structure according to production values of Laos
Years

2006

2007

2008

2009

2010

2011

2012

2013

2014

Total (%)

100

100

100

100

100

100

100

100

100

100

1. mining workers

12.6

10.5

9.9

6.6

9.3

10.6

16.9

14.9

14.2

14.0

7.7

8.4

8.7

14.4

9.8

9.6

8.1

7.9

7.9

8.2

3.0

2.6

2.5

2.6

3.8

4.4

3.4

3.6

3.3

3.5

4.5

5.0

4.7

4.5

5.2

5.9

6.6

6.8

7.0

7.5

2. processing workers
3.
electricity
and
distribution workers
4. construction workers

water

2015

Source: Lao’s General Statistics Office
3.3.3. Results and efficiency of industrial investment and development of the Lao PDR
Total industrial output value of the Lao PDR through increased significantly year, 2006 was
48369.24 (billion kip), by 2010 the total value of industrial production still increased reach 82140.07 billion
kip, the 2015 has reached 129,007.126 (billion kip), an average annual increase of 11% / year.
Industry sector invested abroad grew strongly in the period 2006 - 2015, the proportion of the total
value of industrial production increased dramatically, to five 2015da 77% compared to the industrial
production value throughout the country
In 2006, the processing industry had fixed assets of $ 327.5 million. By 2010, the processing
industry with fixed assets had increased to US $ 640.1 million; up from 95% in 2006 processing industry has
continuously increased to reach 4724.01 million.

3.3.4. The change in the scale of industrial development investment capital of Lao PDR
In the period of 2006-2015, the investment in Laos' industry is estimated at $ 77,805 million (current
price), an average annual growth rate of 11%, of which total investment for processing industries is US $
24,815 million, accounting for 31% of total social investment. The industrial investment structure in 2006
has increased 27.90% to 28.04% in 2010. Currently, the structure of industrial investment tends to increase
3.3.5. The change in the value-added ratio increases against the value of production
Lao's processing industry also has an increase rate (in 2010 it was 9.77%, increased from 7.74% in
2006 and 7.93% in 2015, compared to 9, 77 in 2010). This proves that the cost of processing industry is
increasing and investment tends to decline. Laos’s mining industry has experienced an abnormal increase

3.3.6. Results of enterprise survey on aspects related to investment in industrial development in Lao PDR
Using survey data of 150 enterprises in the industrial sector in Laos on aspects related to investment
for industrial development in Laos as goals towards the investment for industrial development, the
assessment of factors affecting industrial investment and development of the Lao PDR...
3.4. Limitations and causes of Lao industrial development investment
3.4.1. The limitations in the development of industrial investment
Despite achieving respectable achievements as above but also many drawbacks outstanding
investment activities make industry development have not achieved high efficiency. That is:
Firstly, the mobilization of investment capital does not meet the demand for investment capital and the
inadequate structure of capital.
Secondly, the investment structure in the industry is not reasonable, investment in the industry of
mining, mineral processing and metallurgy is currently accounting for too high proportion in the industry
while the industry supporting industries (mechanical industry) is a sector with strength and high economic
efficiency has not been prioritized.....
Thirdly, in terms of the efficiency of using the investment capital has not been improved partly due
to the long investment period, most of the major projects are slow progress
Fourthly, investment activities for technical infrastructure service industry development not meet the
requirements.
Fifth, investment in science, technology, research, development, application (R & D) is limited,
resulting in low efficiency of the industry.

3.4.2. Causes of limitations
+ The planning for development of industrial products is of low quality and not yet able to create a
combined mechanism for investment in industrial development.
+ Investment management is still limited
+ Technology is slow to innovate, technology transfer is still inadequate. Investment in human
resources, in particular, human resources of high quality is less than required
+ The use of mechanisms, policies and measures to support enterprises to promote investment in industrial
development is still limited.
Chapter 4ORIENTATION AND SOLUTION FOR INVESTING ACTIVITIESINDUSTRIAL
DEVELOPMENT OF LAOS UP TO 2025
4.1. Orientation for investment in Lao industrial development
The Lao People's Democratic Republic shall build the industrial development orientation of Lao
PDR by 2025 by sector including textile and apparel industry, mining and processing industry, electricity,
water and waste treatment wear, leather shoes, industrial processing, ...
4.2. Some solutions to the investment activities of industrial development of Laos
4.2.1. Strengthen mobilization of investment capital for industrial development
*) The objective of the solution
Raising investment capital for industrial development is an important task of the Government as well
as the sect oral level. For Lao PDR, the capital of the state budget is limited; therefore, the mobilization of
capital the development of the Lao PDR industry from different sources is extremely important.
*) The content of the solution


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First apply the most flexible mechanisms and policies to mobilize capital from all sectors for
investment, especially in infrastructure to attract investment of technical parks and industrial service of
industrial development

Firstly, for the training, water as well as enterprises must train regularly according to the industrial
development orientation of the whole country to adjust the labor structure in accordance with economic
restructuring, internal transfer ... sufficient human resources and reasonable planning
Secondly, linking and calling for investment in training facilities up to international standards; to
invest in building new ones, expanding the scale and raising the training quality of universities and colleges;
To invest in modern equipment for vocational training, to strengthen linkages and attract highly qualified
lecturers

With regard to state budget capital, the ratio of spending on development investment in the state budget
expenditure structure should be raised and spent largely on industrial and industrial infrastructure development.
Avoid investment spread out, waste, low efficiency.
4.2.2. Need to improve the efficiency of the management of investments to ensure the allocation and
efficient use of capital and reasonable
*) The objective of the solution
Mobilizing and using effective capital is always an urgent need for investors as well as managers and
investors. With the Lao PDR, mobilization of investment capital becomes a difficult problem for the sector
and government, so it is necessary to make full use of investment capital and one of the best solutions. The
goal is to improve the efficiency of the management of investment activities.
*) The content of the solution
Firstly, to continue reforming administrative procedures and applying quality management systems
to state management; Effectively maintain the activities of the request-receiving and result-returning sections
of each branch or branch; one-stop shop; To create an open and equitable investment environment for the
common development of the country.
Secondly, to regularly review, adjust and formulate new investment preferential policies suitable to each
period, specific conditions and high attractiveness; to closely monitor and settle in time arising problems and
ensure the reliability of the implementation of key projects and works; accelerate the disbursement of investment
projects.
Thirdly, for planning: implementation, monitoring and inspection of the implementation of the
planning of industrial development of the mineral planning: Iron, TiO2, lead, metal group, minerals group

and programs, projects, projects of the sector
4.2.3. Solutions for the development of industrial zones, clusters, small-scale technology development and
craft villages in order to overcome the limitations in the infrastructure of the industry.
*) The objective of the solution
Investing in IPs and ICs is a direct factor of industrial development investment, so it is necessary to
improve this factor in the direction of modernization to fully meet the demand of production and business
activities businesses and investors. Therefore, measures to develop infrastructure of IPs and IPs to overcome
current weaknesses in the technical infrastructure of the industry.
*) The content of the solution
Firstly, incentives for investment in industrial zones and clusters under the Investment Law and
decrees of the Government should be continued to encourage investors. Investors investing in local industrial
clusters according to the planning, depending on the conditions of each region, shall be considered to
partially support the site clearance expenses and build the main trunk roads in the industrial clusters.
Secondly, encourage enterprises to be investment owners and build infrastructure of industrial
clusters in the country
Thirdly, to make investment plans and organize the construction of technical and social
infrastructure systems outside the fence of industrial parks
4.2.4. Investment solutions to develop human resources for industrial development
*) The objective of the solution
Industries with their characteristics need quality labor. Therefore, training and fostering of human
resources is a prerequisite for raising the efficiency of industrial investment.
*) Solution content

Thirdly, in order to ensure a high level of professional and skilled workforce, it is necessary to
encourage the workforce with good professional skills in the country through the selection of human
resources, through the skills competition of the Industry associations. Organize seminars, specialized reports
to improve knowledge for workers.
4.2.5. Investment solutions for science and technology development
*) The objective of the solution
In terms of science and technology developed rapidly, but the resources of Laos are limited, there

should be plans for technological innovation in an appropriate manner; choosing the right technology to
innovation, technology use multiple floors, combining traditional technologies with modern technology
(encourage receiving modern technology, determined to prevent obsolete technology), through change new
technology helps to enhance the quality and competitiveness of products, be sure to replace imports.
*) Solution content
It is necessary to encourage young talents to learn creatively, to study and apply new technological
achievements. Rejuvenation staff sector management, facilitating tours, academic exchanges with foreign
countries to timely grasp of market information, technology
4.2.6. Solutions to investment promotion activities
First, to improve the content and improve the efficiency of trade promotion activities; these guide
practical activities to call for investment, maintenance and development of production, especially of key
products have the potential and advantages of the country.
Secondly, to investment promotion activities based on existing external relations between a country
and other countries at domestic and abroad
Active exchanges and exchanges to enhance the understanding of culture, history, people and
potentials in the country through the promotion of investment mobilization, especially in attracting foreign
investment.
4.2.7. Investment solutions for industrial development associated with environmental protection
Associate the development planning industry, socio-economic development of Laos with
environmental sustainability; to closely combine investment in renovation of equipment and technologies
with waste treatment systems and useful solutions for environmental protection. In the field of new
investment, production establishments must strictly comply with Measures to protect the environment before
investing in production. Observation, regular inspection of production facilities in compliance with the
regulations on environmental protection
4.2.8. Review and finalize planning for industrial development investment
Based on the Lao People's Democratic Republic's industrial development planning up to 2025, which
has been approved by the government, from the current status of public investment in Lao PDR in the past,
the master plan for socio-economic development by 2025, the development plan of each industry, each
province of Lao PDR ... And the current state of infrastructure of Lao PDR, it is necessary to review and
adjust the industrial development planning of Lao PDR to ensure the development goals for the industry of

Laos.


13
CONCLUSION
Investment and development industry has always been considered important task for bodies of state
management and is vital for every industrial enterprise in the process of industrialization, especially in the
context of integration regional and world economy.
The results of industrial development investment in the period 2006-2015 have contributed
positively to changing the economic situation of Laos. Many large-scale projects have significantly increased
the production capacity of many industries, and the industrial infrastructure has been step by step created to
attract investment capital. As a result, the GDP growth rate was at a rather good level and the economic
structure shifted in the direction of progress.
Thereby, the thesis analyzed the positive results, the drawbacks and causes reduced industrial
investment and development of Laos. From there, give opinions, direction of investment for industrial
development as the basis of time to build solutions, the thesis has proposed a number of measures as follows:
Strengthen mobilization of investment capital for industrial development of Lao PDR.To train
human resources of high quality to meet the requirements of investment in industrial development
To intensify investment promotion activities and a number of other solutions