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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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