Research On China's Direct Investment In Laos

Since 1986,Laos has gradually phased out the planned economy and established a market economy with macroeconomic regulation and control.It has been growing its gross domestic product(GDP)for more than 7%for many consecutive years,ranking among the top in ASEAN countries;increase.At present,China is the largest investor in Laos.According to Chinese statistics,as of December 2016,our cumulative direct investment in Laos is about US$6.55 billion.Laos'actual investment in China is about US$49 million.Cooperation between China and Laos The outlook is still very broad.There are currently 12 special economic zones in Laos.Special economic zones have become a new model for Laos' economic development.Four of the 12 SARs are invested by Chinese companies.China is Laos' most important source of investment and plays an important role in Laos' economic development.The Laos and China's destiny community is promoting comprehensive cooperation between the two countries.The mountains in northern Laos are towering and the traffic is very inconvenient,which seriously restricts the local economic and social development.In December 2013,with the official opening of the Trans-Mekong River Bridge on the Laotai border,the Kunming Highway,the main artery of transportation in the Laotai and the Three Kingdoms,was completed.The Laos section of the Kunming Highway,funded by the Quartet,including China,eased the bottleneck of traffic in northern Laos and paved the way for local development.Within the framework of the " Belt and Road" initiative,China's investment in Laos has continued to expand.Up to now,China's direct investment in Laos has been included in the railway transportation,agriculture,finance and communications industries.The cooperation between China and Laos has yielded fruitful results,and the breadth and depth of comprehensive strategic cooperation between China and Laos are also expanding.According to statistics,in 2016,China' s non-financial direct investment flows to Laos exceeded US$1 billion,reaching US$1.36 billion,up 36.2%year-on-year,second only to ASEAN countries'investment in Laos in ASEAN;and over 5 billion contracted projects in Laos.The US dollar grew by 39.8%year-on-year.With the continuous development of the "Belt and Road" initiative,the Lao investment environment is increasingly optimized,and China's direct investment in Laos is also stepping up.This article will explain the history,current situation and future of China's direct investment in Laos,and explore the problems existing in Laos.Chinese companies invest in Laos to pave the way and provide effective lessons for reference.