The Objective of the study To systemlize and contribute to improvement of investment theory in economic development, which defines the role of investment for growth and economic develop
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INTRODUCTION
1 The necessity of research
The gravity of lag behind of the national economy in general, and in
particular localities increasingly evident, therefore to promote economic growth,
create jobs and contribute to economic restructuring as well as economic
stability and improve the lives of the tribal people, a necessary and important
condition is how to invest capital and use of resources for the economy by the
most effectively
Based on that research, I chose the topic: "Economic development
investment in Vientiane’s period 2007 - 2011 and vision to 2020"
2 A review of empirical research on economic development in the countries
in the region and around the world
History of economic development shows that, each country depending on
the different conceptions of the subject matter and objective of the leaders chose
the different model of development: Emphasizing rapid growth issues,
emphasizing equality, social fair and comprehensive development
3 The Objective of the study
To systemlize and contribute to improvement of investment theory in
economic development, which defines the role of investment for growth and
economic development, contents, factors affecting investment to apply to the
specific conditions of Vientiane
To analyse the situation of economic development investment in the
capital, to assesse strengths and weaknesses, to clarify the scientific basis and
practical, then propose the solutions for development investment in Vientiane’
economy in time to meet the requirements of industrialization and
modernization, to meet the requirements of international integration
4 Object and scope of the research
Object of the research:
The theory is focused on the scientific basis and practics in content of
investment activities of economic development, solutions for development
investment in Vientiane’s economy
2 Scope of research:
Theoretical: Mainly refers to the theoretical issues of investment and development investment, the theory of investment and economic development
On a practical level: Understanding, analysis and evaluation of the current sistuation of economic development investment in Vientiane, offering the major solutions for Vientiane’s economic development investment in the near future
The range of space and time: The theory is conducted within the subject and activities of development investment for Vientiane, the data for research focusing in the period from 2007-2011
5 Research Methodology
The thesis uses the methods of dialectical materialism, combined with the history and logical methods, mathematical methods, statistics, modeling and systematic approach
The research methods using: dialectical materialist method, combined with the history and methods of logic, analysis and synthesis, statistic, mathematical models and systems approach
- The method of historical materialism and the systems approach: The research activities of mobilizion capital for development investment in Vientiane are conduted in a synchronous manner, associated with the circumstances, conditions and the particular stages
- Statistical Methods: The thesis uses appropriate statistical data for analysis of capital mobilization for Vientiane’s development investment
- Comparison, reference methods: capital mobilization for Vientiane’s development investment are reviewed on the basis of a comparison of its impact on the growth and economic development of Vientiane through each stage of capital mobilization, as well as to raise funds for development investment of a number of countries in the region
6 New contributions of the thesis:
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- Interpretation theoretical basis on the development investment process and
factors affecting growth and economic development in Vientiane, given the
system of indicators measuring the efficiency of the economic development
investment process
- Apply theories to measure and evaluate activities of economic development
investments in Vientiane
- Propose solutions for Vientiane’s economic development from the
development investment by width to by depth, ensuring development
stability
7 Structure of the thesis
Besides the introduction and conclusion, the thesis is divided into 3 chapters:
- Chapter 1: Development investment in local economy – theoretical and
practical basis
- Chapter 2: Current situation of Vientiane’s economic development
investment period 2007-2011
- Chapter 3: Solutions for increasing economic development investment in
Vientiane to 2020
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CHAPTER 1: DEVELOPMENT INVESTMENT IN LOCAL ECONOMY
– THEORETICAL AND PRACTICAL BASIS 1.1 The concepts of economic development investment in local
1.1.1 The concepts
1.1.1.1 Investment
On the investor’s view: investment is activities using existing resources in order
to increase the physical assets, human and intellectual resources to improve the living standards of the population or to maintain operability of the assets and available resources
1.1.1.2 Development investment
Before assessing the role development investment, we will study the concepts of growth and economic development, namely:
- Economic growth:
Economic growth is the increase in the income of the economy in a given period (usually a year) The increase is usually reflected in the scale and speed
Thus, the nature of that growth reflects the change in economy’s output
- Economic Development:
Development is the process of increasing all aspects of the economy Economic development is seen as the process of change, both in terms of quantity and quality, it incorporates the complete process of both economic issues and social issues Thus, Development is a long-term process and decided by the economy’s internal factors
1.1.1.3 Economic development investment
Based on the concept of investment above, economic development investment is understood as spending activites of capital and other resources in the current period in order to maintain and increase operational assets (the tangible l and intangible physica assets) and other values of the economy, create more jobs and improve the living conditions of the populations
1.1.1.4 Economic development investment in local
Trang 35 Economic development investment in local is spending activities of capital and
other resources in each stage in order to properly exploit the local resources,
increase the competitiveness of the local economy, contributing to increase
economic growth, create more jobs and improve the living conditions of the
populations managed by the local authority
1.1.2 The impact of economic development investment on economic growth
and development
1.1.2.1 The impact on aggregate supply and aggregate demand in the economy
The impact on aggregate demand: To create products for society, invesment
first needed Investment is a major factor in the overall proportion of the whole
economy According to the World Bank’s figure, investment nomarly
representing 24 to 28% of the aggregate demand for all countries of the world
Changing increased investment (I) make aggregate demand (AD) increased
AD = C + I + G + X + M
The impact on aggregate supply:
Aggregate supply in the economy is two main sources of supply, including in
domestic and off shore Domestic supply is represented by the following
equation:
Q = F(K,L,T,R ) K: Capital L: Labour R: Resource T: Technology
Thus, increasing the size of investment is the direct reason of domestic supply’s
increase, if the other factors are constant
1.1.2.2 The impact on economic development investment to growth
Expression of the relationship between development investment and economic
growth shown in formula ICOR (Incremental Capital Output Ratio)
1.1.2.3 The impact on economic restructuring movement
Investments have a significant impact on economic restructuring Investments
contribute to economic restructuring consistent rules and social and economic
development strategy of countries in each period, creating a new balance in the
scope of national economies and between sectors, areas
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1.1.2.4 Strengthening science and technology
Technology is a central element of industrialization, investment is an important factor affecting the decision to innovate and develop science and technology If the level of technology is obsolete, industrialization and modernization process will be difficult and not kept up with the technological level of the world so to
be the barrier of the integration process
1.1.2.5 Strengthening the economy’s competitiveness and export
Investment is not only to increase productivity but should focus on improving productivity, quality and reducing production costs It need to encourage investment in innovative technology projects, improving product quality and the development of clean technologies
1.1.2.6 Improving the quality of life for people
Economic development has always been associated with social security and national security State investment is priority on infrastructure, environment, policies of economic development programs: education, poverty reduction, rural water supply development, transport systems
1.2 Capital sources for economic development investment
1.2.1 Orientation of economic development investment in the local authority
Orientation of economic development investment is first defined: objectives, tasks and measures to attract local investment in a certain period of time (usually
5 years, 10 years or longer) The objective of the economic development investment strategy of a local authority is to decide the direction of long-term economic development investment, including: the system of investment point of view, the investment directions, the inportant investment targets and policies
1.2.2 Creating a legal framework favorable to economic development investment in the local authority
The promulgation of legal documents locally derived from requirement of economic development investment in the local authority, but not contrary to the laws of the State The aim is to establish the legal environment for the economic development investment activities in the framework, and create favorable conditions for investment in economic development effectively Property and
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investment
The State’s views on economic development investment is the guiding ideology
across from determining the direction and goals, the defining the tasks and
policies
1.2.3 Direction organization, operations of economic development
investment in the local authority
- Organize the system of management object
- Organize and operate management subject
- Operate the management subject and management object
1.2.4 Checking, controlling and regulating the activities of economic
development investment in the local authority
This content includes the overall activities of the State in order to detect and
handle errors, crashes congestion problems, as well as finance, opportunities to
promote economic development investment in the local authority for the strong
growth in the right direction
1.3 Capital sources for economic development investment
1.3.1 The nature of economic development
Capital sources is the accumulated value expressed as transformed into
investment capital to meet the requirements of social development Thus the
investment capital source is the accumulated savings or the economy can be
mobilized to put into the process of social reproduction This is proved by the
classical economics, political economy and Marxist-Leninist modern economics
1.3.2 Domestic investment capital source
Domestic investment capital is the accumulation of internal economy include
savings of residences, economic organizations, coporates and government
savings mobilized to social reproduction, including:
- State Funds: Including funds of the State budget, the State’s development
credit and development investment capital of state-owned enterprises
- Capital sources from residential and private sector: Including savings of the
population and the accumulation of private enterprises, cooperatives
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1.3.3 Foreign investment capital
Foreign investment capital includes the entire accumulated by individuals, enterprises, economic organizations, foreign governments that can be mobilized for development investment of the host country
1.3.4 Effect relationship between the two types of capital
The relations between domestic capital and foreign capital exists a strictly organic They interact with each other, stimulate each other to create greater strength for the development of each country It is important that we have some information about this relationship, thereby enabling it to promote rapid and limiting effects of impairment, if any
- Domestic capital plays the decisive role
- Foreign capital plays an important role
1.4 Basic contents of development investment
- Investment in additional inventory
- Investment in human resource development
- Starting the process of formation and implementation of investment, contents of development investment
- Investment in marketing activities
- Investment in research and development activities of science and technology
1.5 Contents of State management on economic development investment
- Orientation for economic development investment in the local authority
- Creation of a legal framework favorable for economic development investment in the local authority
- To direct organization and operation of economic development investment
in the local authority
- Checking, controlling and regulating economic development investment in the local authority
1.6 The evaluation criteria of results and effective of economic development investment in the local authority
1.6.1 The evaluation criteria of results of economic development investment
in the local authority
- The volume of implemeted investment capital
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- Fixed assets and production capacity increased
1.6.2 The evaluation criteria of effective of economic development investment
in the local authority
Economic effective
- The increase of production value compared with the entire capital to taking
effect during the period studied (HIv(GO))
- The increase of gross domestic product compared with the value of fixed
assets mobilized during the period studied (HF(GDP))
- The investment capital per needed to increase 1 unit of gross domestic
product (calculated for each locality, and the entire economy) or 1 unit of
added value (calculated for each sector)
The social effect of development investment activities
1.7 Factors affecting investment in economic development investment in
the local authority
Development investment activities are affected by many economic factors (the
investment function is influenced by the major economic variables such as
interest rates, savings, income in which this variables also is a function of
other variables.) and non-economic factors (political environment, institutions,
customs, culture and natural environment)
- Political environment, institutions, customs, culture
- The effect of the natural environment and natural resources
- The main economic factors
Conclusion of Chapter 1
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CHAPTER 2: CURRENT SITUATION OF VIENTIANE’S ECONOMIC
DEVELOPMENT INVESTMENT PERIOD 2007-2011
2.1 Economic - social overview of Vientiane
2.1.1 Geographical location
Vientiane is located in central Laos, within the range from 17°47’50 to 18°22’38 North latitude and from 102°5’40 to 103°09'37 5'40 east longitude, with a total area of 3920 km² (about 1.7% of the country), the average population in 2009 was 795,159 people (about 13% of the population), density of about 203 persons /km² Population of Vientiane distributes very unevenly, while the suburban district with population density is very low as Sangthong 37people/km², Naxaythong 49people/km², the district wrath of the densely populated Chanthabuly high as up to 2,252 people/km², Sisattanak 2,018 people/km² Vientiane has currently 9 districts as Chanthabuly, Sikhottabong, Xaysettha, Sisattanak, Naxaythong, Xaythany, Hatxaifong, Sangthong, Parknguem
2.1.2 Natural Conditions Topography
Vientiane is located between three sides by high mountains and the rest of the Mekong River The terrain consists of two distinct areas: The first is the plain south of Vientiane delta, the NamNgum river basin, an area of approximately 3,298 km², representing approximately 84.13% of the natural area
Climate and Hydrology
The climate is divided into two distinct seasons, the rainy season from May to October and the dry season from November to April of next year
Natural Resources
- Land Resources
Vientiane’s land consists of 11 groups with 26 major soils in which soil is Alisols largest group followed by 38.07% to 30.85% Acrisols
- Mineral Resources
The minerals include:
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Group of metals: iron, about 4 source points Gold has in many places but in
small quantities, manganese, lead and zinc
Group of non-metallic substances: salt, anhydrite rock
Group of building materials: clay types, sand - gravel
Group of gems: Tectit black stone jewelry (Silic)
2.1.3 Socio-economic conditions
Vientiane is a capital with the second largest population after SaVanNaKhet
province, in 2009 the total population of the capital, about 795 thousand people
Labor force is about 415 thousand people, representing 52% of the population of
the city Labour is working in the national ecomomic sectoers is about 75%
Technical infrastructure
- The transport system in the area, including waterways, road and air travel is
very convenient for economic exchange with the region
- Power supply
Power supply for Vientiane is now the national power grid through
substations Phon Toong, Vientiane Currently, the grid has to 100% of communes
and villages all, communal areas and remote areas, 99% of households have
electricity Electricity for production and service activities is 24/24 and constantly
increasing
- Water supply and drainage
Vientiane use surface water from the Mekong River and Ngum river is mostly
sip And other districts are mostly used well water, only a few of the small water
system capacity to serve the residential areas of the district center
- Telecommunication system
Laos currently use 4 G telecom systems In general, post offices and
telecommunications are responsive to the needs of communication, issued in local
newspapers, but still take advantage of the capacity of the system above
- The system of financial - banks
Structure of budget has been gradually improved for more consistent,
using budget is managed tight, ensuring expenses is right purposes The Capital
12 now has more than 32 banks and bank branches, many credit institutions and funds contributed by the residents on the basis of the operational management of the State Bank (the central bank)
2.2 Vientiane’s investment situation in recent years
2.2.1 Divided by investment capital source Table 2.6: Investment capital for Economic development investment divided by
investment capital source period of 2007-2011 (current price)
Unit: Billion kip
Total (Bilion kip) 2.634,2 4.718,0 15.072,4 7.824,3 8.763,2
2 Capital from State Enterprises 191,6 360,3 1.541,5 672,3 771,0
II Non-state sectors 443,2 599,5 935,8 262,3 407,6
1 Capital from Non-State Enterprises 393,3 412,8 750,0 197,5 240,9
III Foreign capital 2.013,2 3.706,9 12.535,2 6.816,7 7.498,4
(Source: Vientiane’s plan for economic- social development - Seventh 5-year)
2.2.2 The implementation of economic development investment by industry
The economic development investment of Vientiane were analyzed focusing on three main areas: industry, agriculture and services
Table 2.9: Investmen capital by industry sector of Vientiane
Unit: Billion kip
Industry 919,4 1.749,4 5.352,2 3.695,5 3.067,1 14.783,6 37,9% agriculture 598,8 1.120,0 2.500,0 1.723,0 2.015,5 7.957,3 20,4% services 1.116,1 1.848,6 7.220,2 2.405,8 3.680,5 16.271,2 41,7% Total 2.634,2 4.718,0 15.072,4 7.824,3 8.763,2 39.012,1 100,0%
(Source: Vientiane’s plan for economic- social development - Seventh 5-year)
2.3 Situation of economic development investment management activities
2.3.1 Established the orientation of economic development investment
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In recent years, the government of the Capital has many activities to guide
economic development investment activities The Capital was distinguished
business functions of the enterprises with the state management function in
shaping economic development investment
2.3.2 The investment environment is more open and built more confidence
The amount of economic development investment of the city has increased
several times compared with the previous period,
The investment environment is more open
2.3.3 Implemented support and regulated economic development investment
Over time, the Capital also implemented basic support functions and regulated
economic development investment The Capital promptly provided information
on laws and policies of the state government, the competition information, the
business environment for enterprises in the Capital
2.3.4 Inspection, cheking
In recent years, the Capital has also increased inspections, checking the
economic development investment activities in the Capital Every year, the
Capital has plan of inspections and checking the areas under their management
2.4 Assessment of the situation of Vientiane’s economic development
investment period 2007 – 2012
2.4.1 Investment result and effect
The impact on economic restructuring movement
As of 2011, Vientiane’s economic structure has achieved certain success, there
are many new industrial sectors established and developped In which, sectors
such as manufacturing large proportion of food, canned foods and 41.54%,
followed by industry production facilities and spare parts, repair accounted for
15.81%, the production of metal products 10.56 %, the textile industry is not
small proportion of 9.90% Thus the proportion of industry development are
small and also very modest
An indicator of outcome assessment and effective Vientiane’s economic
development investment
To evaluate the results and effectiveness, we can use indicators such as GDP
increases, investment apital promoting effects H , ICOR indicators are shown
14
in the following table:
Table 2.22: Some evaluation criteria and performance of Vientiane’s
investment activities period 2007 - 2011
Unit : Billion Kip
1 GDP real 10.462,68 12.298,56 12.977,44 15.397,74 17.199,28
3 Total Investment 4.718,00 15.072,40 7.824,30 8.763,20 39.012,10
4 HIv(GDP) 0,15 0,12 0,09 0,28 0,05
5 ICOR(GDP) 2,13 3,01 9,73 3,25 2,54
(Source: Vientiane’s plan for economic- social development - Seventh 5-year
and the author’s caculation)
Evaluation of social-economic efficiency Vientiane’s economic development investments
Regarding to social- economic efficiency and human development of the Capital: rapid economic growth and constantly had created favorable conditions for progress in implementing the goals of poverty reduction in Vientiane Poverty rate has declined rapidly in the reform era, the poverty rate from 46% to 27.6% during this period Along with poverty redution, income per capita in Vientiane has been rapid increasing in the reform era GDP per capita rose from Vientiane 298 USD (1993) to 1800 USD (2011)
2.4.2 The limitations and causes
2.4.2.1 The limitations
Despite many attempts, Vientiane’s economic development has not achieved the
desired results and the performance We can see some of the following inadequacies:
a) investment capital structure is irrational b) Investment in science and technology has not been paid enough attention
c) The weak infrastructure and low production efficiency d) The management of the state though improved but still some limited
2.3.2.2 Causes and Challenges
Trang 815 Vientiane’s development Investment has not achieved the desired requirements
derived from the following main reasons:
a) The difficulties of the human resources
b) The low capacity of the enterprises in Vientiane led to the competitiveness
of commodities low and unstable
c) The supports and services have still not met the development requirements
d) Management and administration capacity is limited
e) State policies on management development investment is still insufficient
f) Investment capital for development is lack and limited
Conclusion of Chapter 2
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CHAPTER 3: SOLUTIONS TO STRENGTHEN ECONOMIC DEVELOPMENT INVESTMENT IN VIENTIANE BY 2020
3.1 The perspective and orientation of economic development investment of Vientiane
3.1.1 The context of domestic and international development
The international context
Economic globalization is an objective trend and is spreading No countries that can stand apart from that without affected Assigning and international labor cooperation is also developing vigorously and on a sweeping in all areas of economic and socio-cultural
Domestic context
Lao has rich natural resources, especially hydropower, mineral resources such as gold, tin, iron, gypsum, potash, coal An area of natural forest is big and rich Lao has a stable political, high economic growth and step by step carrying the international economic integration Market mechanism is improved The international and regional cooperation increasingly is expanding
3.1.2 The perspective of economic development investment in next future
− Developing the capital Vientiane requested to have foresight, towards modern civilization but retains the value of capital with a clean green environment and bring specific cultural identity of the tribes of Lao
− Ensure minimizing the distance difference between the Vientiane capital with capital of other countries in the region
− Maintain and increase gradually to the top of Vientiane in socio-economic development of the country, especially for the Central and Northern Lao
− Step by step to modernize the economic structure Creating more powerful shift of economic structure in the direction of promoting rapid development
of the service sector, especially tourism, and commerce, the development of the industry
− Fastening to economic growth with equity, social progress, improve the material life, people's cultural life, making poverty reduction program,
Trang 917 reducing the disparity between rural, urban areas with mountains, creating
the harmonious development between regions
− Developing a stable society in which people have to be interested, and also
the purpose for development
− Incorporate synchronization between production and development with the
development of infrastructures on the regions, including rural areas and
mountain
− Make sustainable economic development towards protection, regeneration,
and enrich forest resources, the resource of land and water resources,
protection of the environment Protecting and promoting more cultural
traditions, particularities of Vientiane as well as of the entire country
− Closely match between economic development and consolidating security
defense, strengthening the political system and a strong administrative
background
The Mission of the country, the region with the capital Vientiane in next time
Vientiane as the largest economic center of the country must have a steady
average annual GDP is higher than the national average of 1.3-1.5 times, i.e
must reach 11-12% per year for the five-year period, the speed increase as is the
duty of the country set off for Vientiane (if not done are shrinking the role of
Vientiane, take the lead entice other local development)
3.1.3 The goal of Vientiane’s economic development
The general objective of socio-economic development in the capital Vientiane is
building it became a center of economy, politics and culture with the highest
development; specific targets have done until 2015 to 2020 are as follows:
The primary economic objectives
GDP per capita reached 3,403, 1 USD in 2015, higher than the average of 2.3
times and about 5,734, 2 USD in 2020, higher than the national average of 2.7
times
The average growth rate of the GDP between 2011-2015 is 11%-12% per year
Of which: agriculture: 10.30%
Industry: 14%
18 Increased service: 13.56%
The growth rate of the GDP between 2016-2020 is 10%-11% per year
Of which: agriculture increased 9.4%
Industry: 13.5%
The service increase: 12.7%
The economic structure in 2015:
Agriculture-industry-services: 17%-47%-36%
The economic structure in 2020:
Agriculture-industry-services: 13%-45%-42%
Coefficient of ICOR period 2011-2015 and the 2016-2020 period and 3.25 and 4.1 respectively
Pushing foreign economic relations Establishing some sectors and main export products Striving export turnover of about 200 million US dollars by
2015, 2020 is over 1,100 million Make sure the average export growth rate in the 2006-2010 period is 30-35%, the period 2011-2020 is 19-23%
Striving for budget mobilization rate of GDP by 2015 is 40-45% in 2020 and is over 50% Create a steady source of revenue to not only ensure the resources spent on development of the capital but also contribute more and more
to the central budget
Controlling inflation at 6% under the level where inflation in industry under 5%, in agriculture under 4%, in the service sector under 6%
Social goals
The population in 2015 of about 908 thousand and 2020 is 1,158 thousand (up 320 thousand of people so in 2010) the population growth rate averaged between 2011-2020 is 3.29%
Raising the General indicator of human resource development (HDI) from the current 0.55 to 0.65 0.60 by 2015 and 2020
Focus on developing the cultural and sports activities form the centers of entertainment to attract youths to healthy cultural activities
Other targets
Trang 1019 Ensuring social security and defense, minimizing the social evils as the
basis for stability and economic development, create to firmly safety for the
sovereignty and independence of the country
Greening the barren hills, the forest cover rate increased from 43% in 2002
to about 56% 60.7% between 2015 and 2020 Upgrading quality of coverage
Ensuring clean environment for both urban and rural areas
Make Suring the speed of technological innovation reaches 20% in 2015
and 25% in 2020 Striving to some areas of science and technology of Vientiane
reached average levels of the countries in the region by 2020
3.2 The SWOT analysis in Vientiane’s economic development
3.2.1 Strengths
The impact from the capital
The policies are implemented for business, attracting investment and
infrastructure policy, land, State enterprise reform, administrative reforms are
effective
The capital has many natural resources, mineral resources and land
resources untapped, especially in tourist resources
Have the manpower and labor prices and reasonable compared to other
provinces in the country
The impact of external factors
In addition to the geographical location of the capital Vientiane borders
Nong Khai province of Thailand in the friendship bridge over the Mekong River
and other nearby provinces, Vientiane has the opportunity to exploit the
advantages of the development of the surrounding areas
The situation of economic, social and political stability and continuation of
growth, the economic growth rate could reach 8.5% per annum, the
accumulation of economic sectors increased
The system policy mechanisms continue to be reformed, more openness,
investment capital from the budget for economic development _ society is
maintained
20 Lao is integrating into the world economy, especially ASEAN The international market in the years to come could take place more vibrant, the flow
of investment capital, ODA, FDI is there are showing signs of recovery
3.2.2 The weakness
The growth rate in the past years a quite high but sustainable, quality growth do not meet the needs of social development The life of every population is still low, the difficulties on the economy, culture, social problems not yet resolved in short time
The infrastructure system of the capital was invested to build but not yet fully in sync, and modern
Human resources is abundant but at low levels State officer is still in low management level
Sate management about investment in the capital of Vientiane is not professional, yet, still in the early stages of the process of learning
3.2.3 The opportunities
Lao is in the process of integration into the world economy, regional, it welcomes to all economic sectors of the country on such investment, Vientiane, the capital of Lao, will have the opportunity to take over the investment sources The capital comes after other should learn a lot from the experience of other capitals in the region and the world
Private businesses are increasing rapidly, big investors of the province or of other regions will also participate in the process
The financial system, banks are in the process of expanding, and implement the Government's policy should are priorities for the people to do business
3.2.4 The challenges
The gap in economic development capital Vientiane with the other province and the region is still far The mission becomes the spearhead for other neighboring provinces to develop is very heavily because of low development
point of the capital Vientiane
Poverty rate of the capital Vientiane also is relatively high