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Concessions and Leases in the Lao PDR

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Most <strong>in</strong>vestment <strong>in</strong> this sector is domestic (84%) (see Table 17).<br />

Yet <strong>in</strong> terms of area, FDI with only 61 projects (12% of all tertiary<br />

sector projects) covers 89% of <strong>the</strong> area with<strong>in</strong> this sector. Ch<strong>in</strong>a<br />

<strong>and</strong> Thail<strong>and</strong>, with 22 <strong>and</strong> 11 tertiary sector projects respectively,<br />

are <strong>the</strong> two largest <strong>in</strong>vestors. Meanwhile, France claims only two<br />

tourism projects, one whose area is unknown <strong>and</strong> one of which<br />

covers a significant 67,600 ha.<br />

Investment <strong>in</strong> <strong>the</strong> tertiary sector ma<strong>in</strong>ly takes place <strong>in</strong> North<br />

(48%) <strong>and</strong> Central <strong>Lao</strong> <strong>PDR</strong> (32%), <strong>and</strong> fewer deals are found <strong>in</strong><br />

<strong>the</strong> South (20%). As accessibility is a key factor <strong>in</strong> <strong>the</strong> service<br />

sector, it is not surpris<strong>in</strong>g that most projects are <strong>in</strong>deed located<br />

along <strong>the</strong> major roads (see Map 14). Of <strong>the</strong> total area under<br />

<strong>in</strong>vestment <strong>in</strong> <strong>the</strong> tertiary sector, 96% is <strong>in</strong> <strong>the</strong> North, ma<strong>in</strong>ly as a<br />

result of <strong>the</strong> s<strong>in</strong>gle large eco-tourism project.<br />

Table 17: Overview of Tertiary Sector 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 Tertiary<br />

Sector Deals<br />

% of Total Area under<br />

Tertiary Sector Investment<br />

Domestic<br />

435<br />

3,462<br />

9<br />

84%<br />

5%<br />

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

24<br />

4,877<br />

287<br />

4%<br />

6 %<br />

Foreign<br />

61<br />

69,218<br />

1,357<br />

12%<br />

89%<br />

France<br />

2<br />

67,600<br />

67,600 28<br />

0%<br />

87%<br />

South Korea<br />

6<br />

1,197<br />

299<br />

1%<br />

2%<br />

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

11<br />

271<br />

30<br />

2%<br />

0%<br />

O<strong>the</strong>r<br />

42<br />

150<br />

4<br />

8%<br />

0%<br />

TOTAL Tertiary Sector<br />

520<br />

77,557<br />

163<br />

100%<br />

100%<br />

Rubber Plantation, Namtha District, Luangnamtha Prov<strong>in</strong>ce<br />

28 There are two French l<strong>and</strong> deals <strong>in</strong> total, but only one with a known area, hence <strong>the</strong> average area be<strong>in</strong>g so high (<strong>and</strong> equal to <strong>the</strong> total area).<br />

50 <strong>Concessions</strong> <strong>and</strong> <strong>Leases</strong> <strong>in</strong> <strong>the</strong> <strong>Lao</strong> <strong>PDR</strong>: Tak<strong>in</strong>g Stock of L<strong>and</strong> Investments

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