MOIT VIETNAM | More Opportunities for Vietnamese Businesses to Invest in Lao Provinces

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More Opportunities for Vietnamese Businesses to Invest in Lao Provinces

15th May 2025 post by MOIT Vietnam

The Government of Laos has reaffirmed its commitment to standing alongside Vietnamese and international businesses, providing the most favorable conditions for effective investment and business activities across the country.

Sainyabuli Province (Laos) is considered a locality rich in potential, with favorable conditions for the development of agriculture, agro-processing, and energy.

Sainyabuli – A Land of Agricultural, Industrial, and Energy Potential

Located in the northwest of Laos and bordering Thailand, Sainyabuli Province spans over 16,389 km² and is blessed with abundant land and water resources. These natural advantages make it particularly well-suited for agriculture, agro-processing, and energy development.

Laos, while being the only landlocked country in Southeast Asia, holds a unique geostrategic position as a “bridge” linking Vietnam, Thailand, and other nations in the Mekong Subregion. In recent years, the Lao Government has proactively advanced open-door policies, improved the investment climate, and gradually enhanced transport infrastructure to strengthen domestic and cross-border connectivity.

National development plans include expanding a North–South and East–West expressway network, which, once completed, will reduce travel and cargo transport times, cut logistics costs, and boost cross-border trade and people-to-people exchanges between Laos, Vietnam, Thailand, China, and Cambodia.

With a developing economy, rich natural resources, and clear investment incentives, Laos has emerged as an attractive destination for foreign investors, particularly in high-tech agriculture, eco-tourism, logistics, processing industries, and infrastructure.

Strategic Development in Sainyabuli

According to Mr. Phetphixay Sounvilay, Deputy Governor of Sainyabuli, the province’s socio-economic development is anchored in three pillars: agriculture, industry, and energy.

Sainyabuli actively promotes the cultivation of export-oriented industrial crops such as cassava, maize, rubber, and Job’s tears. Processing facilities for cassava and maize have been established locally, increasing added value before export.

The rubber industry is a particular focus, with around 16,700 hectares currently planted and a target of 19,000 hectares within the next five years, mainly in Xienghone, Phiang, and Parklai districts. Processing plants located near cultivation areas create sustainable value chains for both farmers and investors.

Mr. Phetphixay Sounvilay, Deputy Governor of Sainyabuli Province, shared insights on the province’s socio-economic development policies and investment attraction strategies.

The province encourages business–farmer partnerships under models such as 1+4 (farmers provide land; enterprises provide capital, technology, labor, and market access) or 2+3 (farmers provide land and labor; enterprises provide capital, technology, and market access).

On the industrial front, Sainyabuli is home to major hydropower plants, including the Sainyabuli and Hongsa facilities, along with other smaller plants, supplying electricity to support economic growth and attract further investment.

Investment-Friendly Policies

One notable advantage is the province’s “one-stop” investment management and licensing mechanism. Through the Provincial Investment Management Committee, businesses can complete required procedures efficiently, reducing time, costs, and administrative barriers.

Mr. Phongkeo Bounyavong, Director of the Provincial Agriculture and Forestry Department, emphasized that local authorities are committed to assisting investors throughout the process — from land leasing to obtaining investment permits and implementing projects.

The province also welcomes investors from Vietnam, China, Thailand, and beyond in its priority sectors.

With a stable policy framework, an improving investment environment, clear incentives, and active government support, Laos — and Sainyabuli in particular — is opening up new and promising opportunities for Vietnamese and international businesses.

Khammouane – A Dynamic Central Province

Meanwhile, Khammouane, one of the central provinces of Laos, is emerging as a dynamic locality with great potential for socio-economic development. Strategically located at the crossroads of National Highway 13 and National Highway 12, Khammouane plays a pivotal role in both domestic and international connectivity, particularly along the East–West Economic Corridor.