Research On The Optimization Of Laos’ Policies To Attract Foreign Investment Based On The "Three Circle Theory"

The increase of foreign investment has greatly promoted the economic growth of Laos,but at the same time,the influx of foreign investment has also brought a series of problems and contradictions.Laos’ s foreign investment system not only has the economic effect of crowding in,but also has a certain economic effect of crowding out:while promoting the rapid growth of foreign investment and GDP growth,it also brings competitive pressure to domestic and foreign enterprises,and the regional economic growth is unbalanced.Based on this background,this paper analyzes the development process and policy status of attracting foreign investment in Laos,combines the "three circles" theory with policy,finds out the problems existing in the policy,and tries to put forward suggestions for improvement.The composition of the "three rings" theory mainly includes "value","ability" and "support".According to their overlap,we can analyze the scientificity of policy formulation and implementation,so as to find problems and put forward countermeasures.The fit between the "three circles" theory and Laos’ policy of attracting foreign investment can be reflected in three aspects: the value choice of foreign investment policy,the evaluation of implementation ability and the support of the people.The newly promulgated Investment Promotion Law of Laos in 2016 is the current foreign investment policy of Laos.Overall,the foreign investment structure of Laos has been continuously improved,gradually transitioning from the primary industry with extensive investment to the secondary and tertiary industries,and the industrial structure is more reasonable.In addition,the Lao government continues to liberalize the industrial access of foreign investment and refine the scope and conditions of investment,which is more conducive to the entry of investors.From the perspective of the "three circles" theory,policy issues mainly include that the "value" orientation of Laos’ foreign investment policy is still relatively vague,Laos’ foreign investment access standards and treatment are different,the detailed rules of foreign investment system are relatively rough,and the value orientation of fairness and justice is not enough;Laos’ s foreign investment policy still lacks "capacity" resources.The unbalanced industrial structure of foreign investment,long examination and approval time,low efficiency and low one-stop investment service authority will greatly reduce the policy attraction and is not conducive to the long-term development of foreign investment in Laos;The "support" of Laos’ foreign investment policy is still relatively insufficient.The entry of foreign-funded enterprises has led to the conflict of interest between local enterprises and foreign-funded enterprises and damaged the interests of some local people,which makes people show a non supportive attitude towards Laos’ s foreign investment policy.Based on the reasons for the problems in Laos’ policy of attracting foreign investment,the article finally puts forward optimization suggestions based on the "three circles" theory.First,shape the values of Laos’ policy of attracting foreign investment,reform the treatment of investment access,and clarify the values of Laos’ policy of attracting foreign investment;Second,increase the supply of Laos’ ability to attract foreign investment,adjust the direction of encouragement,restriction and prohibition of investment,standardize the examination and approval process,promote investment facilitation,and adjust the one-stop office authority;Third,strengthen the "support" for Laos’ policy of attracting foreign investment,give play to the driving role of the government,and establish an effective communication and feedback mechanismm.