The inflow of investment into Laos is expected to see a big jump this year despite the global recession, according to data released by the Ministry of Planning and Investment.
The data shows the government has already given the green light to 208 projects nationwide in the past nine months, valued at about US$4.3 billion.
This figure exceeds total investment in 2008 of about US$1.2 billion.
Most investment projects are in mining, hydroelectric power, industrial tree plantations such as rubber, and light industry such as garment manufacture and electrical equipment assembly, according to investment officials.
Vietnam topped the list of investors in Laos for the second year, with investments valued at about US$1.4 billion.
China comes in second with investments of US$932 million, and Thailand has the third highest investment in Laos with US$908 million.
Republic of Korea is ranked fourth with investments of US$74 million.
Investment Promotion Department Director General Houmpheng Souralay said the main reason for the increase in investment this year was that businesses had realised the investment potential of Laos .
Laos has plenty of fertile land suitable for tree plantations, large mineral deposits that can be supplied as raw materials to major industries, and rivers that can be harnessed for hydropower.
Mr Houmpheng said the government's efforts to streamline the investment process had also helped to encourage local and foreign businesses to invest in Laos , as they could now submit investment proposals through a one-stop service unit at the Ministry of Planning and Investment.
The one-stop service unit allows investors to submit proposal documents at just one place, where officials liaise with the sectors concerned to consider approval of the project.
Officials said although Laos has approved more investment projects this year, it did not reflect the true inflow of investment into the country. Some investors had suspended their projects as they were unable to obtain the capital they needed from banks due to the recession.
They also said investors wanted to get permission for concession projects from the Lao government first and wait until the recession was over to get the funding they needed.
Mr Houmpheng admitted the ministry was unable to obtain accurate reports from commercial banks on the true amount of foreign investment in Laos .