Phântíchlựachọnlĩnhvựcđầutưvàothịtrường Lào Exordium Currently, Vietnamese investors and ongoing investment plan and implement investment projects in Laos and Cambodia is very large, especially in the fields of mining, plantation and forest exploitationwith up to 47% of the total forest area For the country with an area of 236,800 km2 and a population of 6.3 million people and the exploitation of mining resources plantation in Laos is my field of investment options I.CHOICE OF NATIONAL AND INVESTMENT SECTOR COUNTRY CHOICE INVEST Why invest in Laos? I give the advantage to invest in Laos as follows: a Geographical location and population Geographical location: the north China 416 km border; Northwest bordering Myanmar-ma 230 km; Southwest that borders Thailand 1,730 km; Cambodian border and 492 km east of Vietnam 2067 km border Area: 236,800 km Population: 6.32 million (2009 figures) Laos has 49 ethnic groups, there are many branches of ethnic and language are divided into 04 groups: the Lao-Thai language group, the Mon-Khmer language group, language group Mong-Dao, Chinese-language Tibet Administrative: Lao 16 provinces and one city (Vientiane Capital) Climate: Continental, divided into two seasons, the dry season (from November to June) and rainy season (June to November)1 b Political regime Laos is a country under the regime of the People's Democratic leadership by one party This has many similarities with Vietnam on political institutions Create stability and consistency in the way the country's development c Socioeconomic Laos is a country located inland, sea and mostly hills, of which 47% of the forest area In particular, many common types of wood suitable for furniture manufacturers in Vietnam Laos is a country with abundant natural resources in agriculture, forestry and minerals This is the logging and reforestation Economy in recent years much progress Socio-economic goals by the congress and the 5-year program plan is implemented effectively Laos is taking advantage of opportunities, is to make the breakthrough and is the premise for a period of acceleration GDP growth in 2007 was 8%, in 2008 7.9% Increasing per capita income, in 2000 reach 298USD/nguoi/nam; 2006 reached 546USD/nguoi/nam, 2007 reached 678USD/nguoi/nam, 2008 reached 841USD/nguoi/nam By 2020, Laos strives GDP per capita increased by 2-3 times now, about 1200-1500 USD / year Foreign Economic Relations: 2007, Laos has trade relations with 60 countries, signed trade agreements with 19 countries, 39 countries for Lao GSP Regulation Goods exports mainly minerals and timber d Economic relationship, politics between Vietnam – Laos Special relationship, attachment and trust between Vietnam and Laos through its long history of struggle and independence of Laos Relationships that have created the conditions for social and economic development of Vietnam and Laos Therefore, the Lao Government always supports and facilitates maximum Vietnamese investors to invest in Laos Sector investment options Forest area accounts for 47% of the total area of Laos, this is a source of forest exploitation extremely ideal for opening furniture plant in Vietnam market and surrounding countries In particular, the forests of Laos, there are many types of wood suitable for the production of furniture and industrial Furniture and interior and industrial development in Vietnam Implementation model a Oriented investment - Assessment of investment, investment research, plans for evaluating the effectiveness of the investment in Laos and areas of forest exploitation Permit investment in Laos (Savannakhet Province); - Assess the economic factors, and political impact of the policy to invest in Laos - To establish 100% foreign-owned company in Laos; b Operating model - Total investment: $ 40 million; - Construction Wood Processing Plant with a total investment value of $ million; - Develop Biological Research Center $ million; - Construction line million c About the investment location Location Our company is expected to invest Savannakhet Province, Laos Savannakhet Province is the second largest province, after the capital, Vientiane With its strategic location in the East-West economic corridor; gate to the Friendship Bridge linking Mukdahan in Thailand; Lao Bao border through into Vietnam, Savannakhet always busy with vehicles crossing, travelers, business and people of the three countries of Vietnam, Laos, and Thailand The city is the second largest economic center of Laos after Vientiane d The investment objective Factory construction and wood processing and construction and research and development center of agriculture, forestry, tree seed supply looks II EVALUATION AND DEVELOPMENT OPPORTUNITIES ADVANTAGES AND DISADVANTAGES 2.1 Pros: Laos is rich in natural resources, especially timber and minerals; - Vietnam and Laos have special intimate relationships Therefore, the Lao Government always supports Vietnamese investors investment and aims to create favorable conditions for Vietnamese investors to develop (typical for Vietnamese investors and business development in Laos as : military Telecom group, Bank for Investment and development, Hoang Anh Gia Lai group ) - Create more jobs and local economic development; - Investment in Savannakhet Province, Laos province is positioned in the process of transportation and communication between the three countries, Vietnam, Laos and Thailand; - Utilize and develop rich forest resources and the development of forest resources not affect the local ecological balance - Our company will provide investment in infrastructure and transport investment where our company - Development of the local economy and at the same time opening up a market provide furniture for Vietnam and neighboring countries - There are the cultural similarities between Vietnam and Laos, many Lao people (leaders) can speak good English - Few competitors in the process of mining, plantation and development of Laos 2.2 Cons - Systems and policies related to the field of investment in Laos has not been finalized; - There is no legal framework to ensure the interests of investors; - Corruption is a major problem; - The movement of the Lao Government in creating a legal framework to ensure the safety of the investment is not high; - Lao transport infrastructure has not been developed, it also prevents a very large part to the investor; - Lao government slow response to those policy issues that ensure the rights and legitimate interests of the international investors in general and Vietnam in particular investors - The development of education and health of Laos are underdeveloped; development of social strata of the population is low - The transparency of laws and policies are not synchronized and consistent 2.3 Daresay - Must be at risk in the process of developing the investment policy of Laos; - Depending on the source of power and exploitation related to mining in the forest; - Ensure a balance to the local ecological environment and the country where the plant and research center of agriculture and forestry; 2.4 Opportunities - This is a great opportunity for our company to develop the Vietnamese market for furniture and furniture industry; - In order to ensure market development is also the precondition for implementing other projects in the areas of business such as: hotels, restaurants and many other public services - Ensure the development of national relations Vietnam and Laos in general and the relationship between our company and local agencies; - To promote the development of trade between Vietnam and Laos III.THE SOLUTION TO MINIMIZE RISK INVESTMENT IN LAOS - Need to build good relationships with the local authorities; - Always ensure that the balance between the exploitation of forests and forestry; - Don, develop infrastructure to ensure that the operation and development of plants and research centers and the development of agriculture and forestry; - Always organizations evaluate and learn about the policies and laws of the Lao PDR and local levels to analyze and provide integrated solutions to ensure the maintenance and development of investment projects; - Ensure labor ratio Laos, to attract local workers in order to improve the quality of life and local society; IV CONCLUSION: The company we invest in the field of mining and plantations in Savannakhet Province, Laos is fully based on the development of cooperation between Vietnam and Laos aims to socio-economic development between the two countries Information as a basis for our company to investors from the analysis of the Vietnamese diplomatic missions in Laos; reporting and assessment of the economic development of Laos