Southeast Asia Information Port (www.dnyxxg.com) reports that major Thai companies are targeting neighboring Laos, which is mired in an external debt crisis, and plan to invest heavily in its future. TU Thai Union announced a US$14 million investment to build a cold storage facility in Laos capable of storing 8,000 tons of goods. OR stated that it will invest no less than 8 billion baht in Laos over the next five years.
Although Laos' economy is suffering from a crisis of public debt, especially its massive external debt, with government budget cuts, high inflation, and the Lao kip falling to a historic low, this has not dampened the enthusiasm of major Thai companies to invest in Laos.
As one of the poorest countries in Southeast Asia, Laos has a total population of approximately 7.5 million, but massive infrastructure investments have burdened the Lao government with huge external debt. However, the latest Asian Development Bank forecasts that Laos' economy is expected to grow by 4% in the next two years. A robust tourism industry will inject more vitality into the country's economy.
The China-Laos Railway will be the most crucial driver of the recovery of Laos' tourism industry. During the China-ASEAN Foreign Ministers' Meeting in Laos, Foreign Minister Wang Yi expressed China's willingness to strengthen the comprehensive development along the China-Laos Railway, hoping to contribute to Laos' rapid economic development.
It is reported that TU Thai, a Thai tuna producer, announced an investment of US$14 million to build a cold storage center in Laos capable of storing 8,000 tons of tuna, which will meet TU's high-quality supply needs for a whole year. Meanwhile, OR, the holding company of the Thai oil group, plans to invest no less than 8 billion baht in Laos over the next five years to expand its business there.
