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Concessions and Leases in the Lao PDR

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Table 13: Overview of M<strong>in</strong><strong>in</strong>g Exploration Projects by Investor Country of Orig<strong>in</strong><br />

Country<br />

# Deals<br />

Total Area<br />

(ha)<br />

Average Area<br />

(ha)<br />

% of All M<strong>in</strong><strong>in</strong>g<br />

Exploration Deals<br />

% of Total Area under<br />

M<strong>in</strong><strong>in</strong>g Exploration<br />

Investment<br />

Domestic<br />

46<br />

178,610<br />

3,883<br />

41%<br />

17%<br />

Jo<strong>in</strong>t Venture<br />

9<br />

14,793<br />

1,644<br />

8%<br />

1%<br />

Foreign<br />

56<br />

833,471<br />

14,883<br />

50%<br />

81%<br />

Australia<br />

3<br />

332,900<br />

110,968<br />

3%<br />

32%<br />

Ch<strong>in</strong>a<br />

34<br />

375,764<br />

11,052<br />

31%<br />

37%<br />

Russia<br />

4<br />

3,417<br />

854<br />

4%<br />

0%<br />

South Korea<br />

1<br />

1,857<br />

1,857<br />

1%<br />

0%<br />

Thail<strong>and</strong><br />

2<br />

46,000<br />

23,000<br />

2%<br />

4%<br />

Vietnam<br />

12<br />

73,533<br />

6,128<br />

11%<br />

7%<br />

TOTAL<br />

111<br />

1,026,873<br />

9,251<br />

2%<br />

5%<br />

2.3 - Investment <strong>in</strong> <strong>the</strong> Secondary Sector<br />

Investment <strong>in</strong> <strong>the</strong> secondary sector is far smaller <strong>in</strong> terms of<br />

area than <strong>the</strong> o<strong>the</strong>r sectors. Therefore <strong>the</strong> sector’s impact on<br />

l<strong>and</strong> use <strong>and</strong> l<strong>and</strong> cover change <strong>in</strong> <strong>the</strong> <strong>Lao</strong> <strong>PDR</strong> is relatively<br />

small <strong>and</strong> most relevant <strong>in</strong> urban areas. This section provides<br />

a broad overview of <strong>in</strong>vestment <strong>in</strong> <strong>the</strong> secondary sector,<br />

though its significance nationally is not analysed <strong>in</strong> <strong>the</strong> same<br />

detail as <strong>in</strong>vestments <strong>in</strong> <strong>the</strong> primary sector.<br />

The secondary sector <strong>in</strong>cludes 829 projects (31% of all<br />

projects), cover<strong>in</strong>g an area of 26,966 ha (only 2% of <strong>the</strong> total<br />

area under <strong>in</strong>vestment). The sector consists of projects <strong>in</strong><br />

construction, electricity <strong>and</strong> manufactur<strong>in</strong>g <strong>and</strong> process<strong>in</strong>g<br />

(see Map 13). The 155 concession projects cover 94% of <strong>the</strong><br />

total area covered by projects <strong>in</strong> this sector, compared to <strong>the</strong><br />

674 lease projects with only 6% of <strong>the</strong> total secondary sector<br />

area.<br />

Most <strong>in</strong>vestment <strong>in</strong> this sector is domestic (70% of all secondary<br />

sector projects) (see Table 15). Ch<strong>in</strong>ese <strong>and</strong> Vietnamese <strong>in</strong>vestment<br />

account for 10% <strong>and</strong> 7% of secondary sector projects respectively.<br />

However, <strong>in</strong> terms of area, FDI <strong>and</strong> JV projects cover <strong>the</strong><br />

majority of <strong>the</strong> area under <strong>in</strong>vestment with<strong>in</strong> this sector (70%<br />

<strong>and</strong> 22% of <strong>the</strong> area under secondary sector <strong>in</strong>vestment).<br />

Investment <strong>in</strong> this sector is distributed quite evenly across <strong>the</strong><br />

three regions <strong>in</strong> terms of number of projects; <strong>in</strong> terms of area,<br />

however, <strong>the</strong> vast majority (73%) is allocated with<strong>in</strong> <strong>the</strong> Central<br />

region, as most manufactur<strong>in</strong>g <strong>and</strong> process<strong>in</strong>g <strong>in</strong>dustry is<br />

based <strong>in</strong> <strong>and</strong> around urban areas.<br />

Manufactur<strong>in</strong>g <strong>and</strong> process<strong>in</strong>g is <strong>the</strong> largest subsector <strong>in</strong><br />

terms of both projects (427) <strong>and</strong> area (22,878 ha), followed<br />

by construction (392 projects/358 ha) <strong>and</strong> electricity (10<br />

projects/3,730 ha) (see Table 2 <strong>and</strong> Table 14).<br />

84% of all projects with<strong>in</strong> this sector are operational; however,<br />

<strong>the</strong> 10% which are non-operational cover 60% of <strong>the</strong> secondary<br />

sector’s l<strong>and</strong> area. These results largely reflect just one nonoperational<br />

Japanese manufactur<strong>in</strong>g project cover<strong>in</strong>g almost<br />

16,000 ha.<br />

Vientiane New World Construction Site,<br />

That Khao Village, Vientiane Capital City<br />

RESULTS<br />

47

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