The Study Of Laos Investment Environment And China's Direct Investment In Laos

FDI is an indispensable factor in the socio-economic development of all countries in the world,especially in poor and developing countries.At the same time,for investment countries,overseas investment will help enterprises to expand the market,reduce production and operating costs,get more customers,make full use of resources,access to raw materials,saving transportation costs.In recent years,with the development of China's economy,China exposed a lot of problems,such as high wages,lack of grass-roots labor,industrial land costs,environmental awareness rise,appreciation of the renminbi and other factors,making some domestic manufacturers,New development opportunities.Laos,as one of the countries with potential for development in Southeast Asia,has gradually shifted from a planned economy to a market economy and has actively created a favorable investment environment to attract foreign investment.This article analyzes the trend of China' s direct investment in Laos and the problems encountered by Chinese investors in Laos.Is also analyzes China ' s strategy of direct investment in Laos and Laos's strategy to improve the investment environment.Through the study,this article find:(1)China's direct investment not only has short-term positive effects on Laos' economic growth,but also has long-term positive effects.We can understand that the increase of China's direct investment will promote the rapid growth of Laos economy.(2)China's direct investment and foreign direct investment have weak technology spillover effect on Laos's local enterprises.Based on this,the following suggestions are made for China's investment in Laos:(1)Chinese investors investing in Laos should understand local land laws and regulations,carefully select sites for construction,and consider the management issues of human resources in Laos.Finally,they will learn more about the taxation policy of the Lao government and seek favorable conditions from the Lao government.(2)China's strategy to invest in Laos should be do a good job of professional assessment,the implementation of basic engineering construction,export-oriented,good use of technology to save money.Lao itself to improve its investment environment,should do:to improve the investment environment,vigorously curb the red envelope culture,speed up the legislative speed,financial,telecommunications,labor law reform,simplify the administrative procedures.