The Feasibility Study Of The Introduction Of Chinese FDI In Northern Laos

Since 1991, the government of Laos has implemented reforms for the economic growth since the opening up of Laos, the people living conditions are increasingly enhanced, in order to further develop the country’s economic growth, the Lao government continue to improve the laws and regulations, investment environment, to promote the advantages of Laos investment and to give a variety of preferential treatment for foreign enterprises in Laos. To attract foreign investment is one of the most important aspects of Laos policy.The northern part of Laos contains nine provinces, with an area of 13.59km2 and a total population of about 2 million 500 thousand people. Northern Laos has natural resources, geopolitical advantages, natural article with the advantages of the development of the industry, however the economic foundation is still weak. Production methods are still based on the traditional, self-sufficient natural economy. In order to accelerate the improvement of economic efficiency, reduce and eliminate poverty. An important strategy to promote the sustained and rapid development of social economy would be the formulation of industrial development plan for the Northern part, choose the appropriate development model in the North, establish the scientific development ideas, goals and focus, promote the rapid development of the industry, to speed up opening up and cooperation.From 2004 the Lao government and the Yunnan Province in China signed-Working Group on Cooperation in northern Laos and until 2015 seven meetings have been held, some progress in cooperation have been made too, the northern part of Laos has seen an unprecedented development in agriculture, terms of industry, tourism, transportation and other rapid progress, Chinese companies investment recently in northern Laos continue to increase. In 2013 year, total trade between Laos and Yunnan Province reached $ 1.05 billion, compared with the previous year, an increase of 202.2%, in 2014 it reached $ 1.37 billion, an increase of 31.3 percent, accounting for in-40% of the old trade; Laos has become the second largest trading partner of ASEAN in Yunnan province. Laos has become the main destination of foreign investment of Yunnan enterprises. As of September 2015, Yunnan-invested enterprises reached 211 in Laos.Lao’s economic base paper will begin in-depth study of social-economic development strategy in northern Laos, discuss the need for Chinese foreign investment and put forward some useful suggestions to facilitate future theoretical and practical reference. This article discusses a total of seven chapters:Chapter I:Introduction, Chapter II:theories about FDI, Chapter III:analysis of current situation of FDI, Chapter IV:Laos to attract foreign investment profile, Chapter V:the need to attract Chinese foreign investment, Chapter VI:the introduction of empirical analysis of FDI, Chapter VII:Suggestions to attract Chinese foreign investment.