Foreign Direct Investment (FDI)

Indian entrepreneurs committed a combined US$ 950 million in plantation, iron ore and agar wood which made India the 7th largest investor from 22nd position in 2010-11. India now ranked 8th in FDI in Laos with total 33 projects and investments of US$ 161 million in 2011-12.      

Some Major Indian investments include :
(i) Birla Lao Pulp and Plantation, established in June 2006, is committed to investing US $ 400 million in a Eucalyptus pulp and plantation project in Savannakhet province. This is the biggest Indian FDI in Laos. 13619 hectares have been planted in Savannakhet and Champasak provinces till Feb 2012.  The company has spent US $ 31 million up to March 2012.

(ii) The Lao SPG CMC Mining Company Limited, a subsidiary of GIMPEX India, obtained a license for an iron ore mine in 2008, with a commitment to invest US $ 10 million, out of which US $ 7.7 million has been spent.  This is a 200 hectare iron-ore mine at Ta En village, Viengxay district, Samneua province.  As of March 21, 2011, the mine has produced 60,717 metric tonnes of iron-ore, of which 56,408 metric tonnes have been exported to China.

(iii) The HSMM Group has invested US $ 13.8 million in agarwood plantations and two factories in Vientiane and Xaysomboun, Vientiane province. It has a US $ 800,000 iron ore mine in Sekong province in partnership with Mineral Enterprises Limited, and a US $ 100,000 iron ore mine in Khammuan province.

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