Research On The Impact From China FDI On Laos's Economy Structure

With the rapid development of economic globalizations and also the regional economic integration,the establishment of China-ASEAN Free Trade Area has played a decisive role in China's investment and development in the whole world such in Southeast Asia.As one of the ASEAN member countries,Laos is also one of the neighboring countries of China.It has been greatly influenced by China politically,economically and culturally.Laos,like China,is a socialist country with a weak economic base and a small land area,but natural resources,natural resources,and water resources are very rich.The development of a country relies on the support of the economy.Laos has been attracting foreign investment for its rich natural resources.China based on friendly cooperation,especially in the "The Belt and Road" under the background of the increasing numbers of investment in Laos.The main investment areas in Lao PDR including agriculture and forestry,hydroelectric industry,mining industry,tourism industry,service industry and so on,which stimulate domestic economic development in Laos to a certain extent,improve the living standard of the people It plays an important roles about the process of the local economic construction.In addition,China has an important investment and trade partnership with Laos,and China is also the first country to enter Laos in direct investment.In addition,according to the statistics of the Laos Statistics Bureau,China has always been the second largest investor in Laos,but because of the limitations of Laos' economic base,investment management and infrastructure construction,it has greatly hindered China's investment in Laos.In fact,it also has a bad effect on the country's economy.In order to better promote the economic development of China and Laos and enable Laos' GDP growth to continue to grow,Laos is also paying more and more attention to the introduction of foreign investment.Therefore,the purpose of this paper is to study the economic impact of China's direct investment on Laos.Through the research on the status of direct investment in Laos,the economic impact and the existing problems in the process of investment,this paper dissolves the advantages and disadvantages of China's direct investment Laos,and uses the SPSS 21 software for China FDI.And empirical analysis of several factors in Laos economy.Finally,the analysis of the previous article gives some suggestions and countermeasures,and shows that China's direct investment in Laos promotes the overall development of theLaos' s economy increases the employment opportunities of the Laos people and improves the quality of life of the people.This study provides a lot of reference for the construction of the old investment cooperation area,which can promote the sustainable development of the two countries' economy and the surrounding economy,and analyses the problems in attracting investment,which is beneficial to Laos to improve its competitive ability,to strengthen cooperation with Chinese investors and to introduce foreign investment.On the other hand,the development of Laos' s economy can also accelerate the economic development of China and Laos to achieve mutual benefit.