The Study Of Foreign Direct Investment Problem In Laos

Since the adoption of the reform policy in 1986, The Laos government has been trying its best to attract foreign investment and make use of foreign advanced technology to develop its national economy. In order to enlarge economic, science and technology corporation with foreign countries, participate in the international division, fully dig its economic potential,improve export,strengthen its nation, Laos supreme people’s parliament enacted Laos foreign investment law in 1988, which includes 4 chapters:general principles, manners of investment, rights and obligations of foreign investments. And since then, many other favorable policies and law have been released. These favorable policies and law mainly include reduction of the profit income tax and the Custom tax of importing raw materials for production, of production equipment and of transportation means to satisfy investors’ need of the use of land and natural resource. At the same time, the Laos government provides advantages in housing and exit. The Laos government encourages individuals and legal persons to invest on the base of mutual benefits and in conformity with the Laos law. Foreign investors’ investment and poverty are fully protected by the Laos law. The Laos government enforces market-oriented economic policy, which makes the foreign trade system freer and transparent.In the last few years, along with the Laos reform and open policy’s expansion, various provinces and cities, various departments in stepped out using the foreign capital to compare the stride generation in front, has carried out many to the foreign investment preferential policy, rushed to the village good condition and the investment environment for the foreign investment.FDI already became ten points to the Laos economic growth’s influence to make one matter of concern. But present domestic and foreign are also very few concerns this aspect research article. The numerous scholars when studies FDI to the Laos economic growth influence, mostly is by the theory and the actual situation research, but has not carried on the empirical analysis. Therefore this article from Laos domestic superiority angle embarking, utilizes in the economic the international direct investment theory, the comparison superiority theory, the value chain theory and so on, entered Laos’s reason to the foreign capital to carry on the analysis, based on this, analyzed the Laos use foreign merchant direct investment the present situation as well as the existence question, and entered to the foreign capital to the Laos economic growth influence has carried on the discussion. The research has also discovered that Laos attracts the investments abroad the superiority is:Resources superiority, geography superiority, policy superiority, low labor force cost advantage. Finally, introduces the foreign direct investment at present in view of Laos the actual situation, had some problems to the current Laos introduction foreign capital to carry on the summary, has drawn several conclusions, and proposed according to the related conclusion in the future Laos introduction foreign capital process may adopt some suggestion measure.