China’s influence in Laos overshadows Vietnam  Foreign direct investment (FDI) by Vietnamese local companies in its smaller neighbour to the west, Laos, has reached nearly US$4.9 billion, said speakers at a recent conference in Ho Chi Minh City. The gathering was held at the new Laos Investment Centre, chaired by the Lao and Vietnamese governments, and attended by government and business leaders from the two nations. “Vietnam and Laos have been strategic allies since the 1970s,” said Phoikham Houngbounyuang, deputy governor of the Lao province of Xaysomboun. The Deputy Governor said though land-locked Laos is one of the poorest countries across the globe, it has one thing in abundance, access to the Mekong River and massive hydropower potential. China is the largest investor in Laos, he said and currently is eying total FDI of more than US$31.45 billion in 240 investments, principally in hydropower, with Chinese investors currently involved in four of nine dam projects in the Laotian Mekong region. Chinese companies have also committed US$7.2 billion to a railroad linking its Yunnan province to the Lao capital Vientiane as it sees its southern neighbour as an important route into Southeast Asia. “Vietnamese businesses have invested primarily in agriculture, energy and natural resources,” said the Deputy Governor, and business they operate have generated more than 40,000 jobs for local Lao people. Vietnamese businesses have also contributed significantly to improving the social welfare of Laos having constructed badly needed schools, clinics, hospitals, roads and low-income housing. Much of the meeting focused on the industries and regions for which Laos needs Vietnamese investment. The meeting also provided information on incentives the Lao government is offering Vietnamese local companies for doing business in Laos. However, the degree of penetration of Chinese businesses FDI in Laos continues to grow and now completely overshadows Vietnam’s influence in its western neighbour, said the Deputy Governor.   Countering the growing influence of China in Laos is one of the driving forces for our opening of the Investment Centre in HCM City and our commitment to boosting trade and investment between the two nations. VOV