[NEWS] – Opportunities in agricultural investment in Laos

Laos is being evaluated as one of the stable markets for trade and investment development, especially in the Agriculture sector.

Agriculture is one of the key sectors of the economy, accounting for nearly half of Laos’ GDP, and 90% of the Lao population is employed in the agricultural sector. However, Laos still has not taken full advantage of the country’s abundant agricultural advantages such as The area of vacant agricultural land is still large, not yet utilized machinery and science in agriculture, etc. This is an opportunity for other countries, especially neighboring Vietnam, to boost agricultural investment in Laos.

1. Agricultural resources are still abundant

Laos’ land resources are abundant, the arable area is more than 7 million hectares, and most of the agricultural land is still unexploited. The natural conditions are ideal for agriculture, and rainfall and sunlight in Laos are abundant. In addition, the soil in central and northern Laos is extremely fertile, and suitable for agricultural cultivation, eastern and southern Laos terrain is mainly mountainous, and suitable for afforestation and livestock development. cattle.

Rich agricultural resources, Laos has land resources, and diverse organisms, the rate of agricultural exploitation is still low, and the potential for agricultural development is still great. In addition, the economic development level of Laos is still relatively backward, so the ecological environment has not been broken, and agricultural pollution is low, so Laos has a lot of potential advantages for agricultural development. ecology, promoting the expansion of biotechnology without using chemicals, and exploring the market for clean agriculture.

The forest cover area of Laos is 1.18 million hectares, and the volume of timber reserves is up to 1.6 billion m3, the average wood reserve per capita in the world. Types of forest wood in Laos reach more than 10,000 types, timber output reaches 949.4 million m3. Currently, the Lao government has issued regulations restricting the export of raw wood, but due to the need for economic development, it still allows the export of some processed precious wood products, while considering preferential treatment. for large-scale wood processing enterprises with modern techniques. Forest resources of Laos are evenly distributed in all three regions, however, the highest timber output is still in Central Laos, in addition, transportation of timber via waterways and roads is relatively convenient, which is beneficial for export.

2. Favorable geographical location

Laos belongs to the Indochinese peninsula, the center of the Mekong sub-region, and is a purely continental country bordering 5 countries. In recent years, Laos has proposed a program to change from "a country without a sea" to a "continental country", participating in China’s "belt and road" initiative, and building a Laos-China railway. At the same time, actively work with ASEAN countries to promote the plan to connect transport and telecommunications infrastructure, and promote the formation of an economic corridor in the Mekong sub-region. Along with the process of promoting the above programs, Laos hopes to bridge the link between economic institutions and become the center of agricultural product trade in the Mekong sub-region.

3. Many preferential policies on agriculture

The cost of land concessions and labor is relatively low, and land for agricultural projects in Laos can be rented through concession contracts at relatively low prices. At the same time, labor costs in Laos are also among the lowest in Asia.

Laos has many preferential policies on land and tax to attract foreign investment, food produced by enterprises can be exported and is exempt from export tax, greatly reducing production and business costs. improve the economic efficiency of the food crop industry. Enterprises can also choose from many forms of investment cooperation between enterprises - the state - people - research institutions.

Currently, the investment market in Laos is becoming exciting. The Lao government is expanding preferential policies for foreign investors, especially in the agricultural sector. Indochina Holdings is proud to be one of the partners of the Consulate General of Laos in Ho Chi Minh City. HCM. Currently, Indoco Travel, a subsidiary of Indochina Holdings, organizes "Connecting Journey" - an investment tour program that helps businesses have the opportunity to open potential business and investment opportunities in Laos. We always accompany and support becoming a solid bridge to open up many cooperation opportunities between Vietnam - Laos businesses, contributing to increasing the bilateral relationship between the two countries.

Thanh Long (Source of collection)