La kannika saignasane sum

1 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 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 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 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 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 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 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 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 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 CHAPTER 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 7 Unit: % 100 80 40 Vốn nước 20 Vốn nước 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 (%) Non-state enterprises (billion kips) 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 I State capital (billion kips) Proportion (%) Investment capital from the State budget 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 (%) FDI (billion kips) 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 9 10 Table 3.12: Economic structure in GDP by 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 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 processing workers electricity and distribution workers 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 11 12 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