Research Of Laos Attracting Foreign Investment

Laos locates in the northwest of the peninsula of southern inside Asia. Territory aria is 23.68 ten thousand square kilometers or so. Total population is now about 540 ten thousand or so. The Capital is Vientiane.Laos is the unique inland nation of Southeast Asia that does not go out to the sea and have no railroad. Laos economic suffer certain restrict from many years' war, whose damages still exist. Therefore, Laos is called the 20sth centuries in Southeast Asia a piece of finally virgin soil that has not be developed. Magic power that Laos have got the special geography position with the abundant forest resources, water electricity resources, ore resources, and travel resources, singly to draw on the foreign investor.The various economic compositions co-exist now. Laos party abrogated the policy of " socialism nationalization", "industry and business industry socialism reform", " three greatest revolutions" etc. The party proceeded to adjust policy and Laos have already become to have the nature or half nature economy, small merchandise economy, private capitalism economy, national capitalism economy and socialism economic, totally 5 economic compositions. The government adopts the same policy to the different economic compositions. At the same time, the Laos pay great attention to the foreign help and the function of the foreign capital in economic developments,but are similar on the language, culture, religion and the fundamental lifestyle. Therefore Laos economy have got the close contact with Thailand. Because the Laos has no a heavy industry, the backward economic foundation and undeveloped production ability, the majority product depends on import and export is only a handful of agricultural product, which make the Laos appeared the unfavorable variance with Thailand on the trade. After the diplomatic relationship normalization in 1989, two countries traditional comity and cooperation relation get to completely recover and develop, then obtained the plenteous result at the politics, economy, trade, the culture and education, military realm. The investment policy loosens, and the Laos government established a series of investment laws called liberal by western economist since 20 centuries 80s. The investment environment is superior; There is advantage in abroad market.To make use of the foreign capital acquisition for the sake of the Laos, Laos must hold firmly to perfect soft environment, and make use of the foreign capital work and to establish the system of guarantee, match international tradition, follow the foundation of the market economy regulation, attain to divide the work clearly and definitely, have real results. For this, I want to give below concrete suggestions: to perfect the intermediary service system; to perfect the market system of property right; to perfect the local laws involving foreign investment; to perfect state-owned capital management system.