Võ Văn Hoan, vice chairman of the HCM City People’s Committee, speaks at Việt Nam - Laos Trade and Investment Forum 2024 on Friday in HCM City. — VNA/VNS Photo

HCM CITY — The ASEAN region has become a significant destination for foreign direct investment (FDI) thanks to its 'diverse economic and political landscapes,' an official from Laos said at a forum in HCM City on Friday.

Speaking at the Việt Nam - Laos Trade and Investment Forum 2024, Phaophongsavath Phouvong, chief of Investment Promotion at the Laos Ministry of Planning and Investment, said the redirection of foreign capital towards the region is evident in the sustained growth of FDI over the years, which reached US$230 billion last year.

“While global FDI flows have declined, investments in ASEAN now account for 17 per cent of total global FDI flows,” he said.

For three consecutive years, ASEAN has positioned itself as the leading investment destination among developing nations, including Laos, where FDI flows have mirrored the regional trend.

In 2023, Laos recorded an FDI value of $4 billion, nearly double from $2.3 billion in 2022.

“Laos wants to mobilise investments across all economic sectors, both domestically and internationally,” he said.

To do this, it will enhance its transport infrastructure to improve connectivity with regional partners, including Việt Nam, while promoting tourism development and attracting additional foreign investment, he added.

It has implemented policies to attract investors in priority sectors such as clean agriculture, processing, tourism, particularly cultural tourism, and renewable energy.

Cooperative relationships

Speaking at the event, Võ Văn Hoan, vice chairman of the HCM City People’s Committee, said HCM City has fostered cooperative relationships aimed at socio-economic development with various regions in Laos, he said.

Vietnamese investments are widespread throughout Laos, spanning various sectors including finance and banking, telecommunications, services, agriculture, and forestry, he added.

Laos is currently among the largest investment markets for Việt Nam, with 417 projects valued at $4.9 billion, primarily in agriculture ($680 million), electricity ($980 million), mineral extraction ($1 billion), and other sectors ($2 billion), according to the Laos Ministry of Planning and Investment.

According to a report from the HCM City Department of Planning and Investment, HCM City in southern Việt Nam is host to FDI from 122 countries and territories worldwide.

Total investment from Laos in HCM City has reached $1.9 million, primarily in the wholesale and retail sectors, as well as the repair of automobiles, motorcycles, and bicycles.

Conversely, the city's investment in Laos exceeds $500 million, largely in mining, processing, and manufacturing industries.

Trade turnover between the city and Laos amounted to $1.8 million in the first eight months, with the city’s exports to Laos totaling $1.6 million and imports from Laos reaching $271,000.

The annual forum was organised by HCM City People's Committee in collaboration with the Lao consulate in the city. — VNS