Concessions and Leases in the Lao PDR
Concessions and Leases in the Lao PDR
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