Pace of private investment slows as Laos confronts limits

Low global market prices for mineral commodities and rubber are putting the breaks on new ventures and helping to weaken growth in private investment in natural-resource-oriented Laos, state-run media reported Monday.

National Economic Research Institute (NERI) senior economist Dr Leeber Lubapao said international headwinds for commodities in combination with government cutbacks due to domestic fiscal constraints were dissuading investment in some sectors that had been responsible for past growth, state-run media Vientiane Times reported.

According to reports issued by the nation's government, Laos is reportedly projecting net private investment of about 2.3 billion U.S. dollars for the coming fiscal year.

This is a marked decrease from the 3 billion U.S. dollars of net private investments made in the country during just the first six months of 2014-2015.

The nation's business sector has reportedly asked policymakers to urgently address challenges presented in transportation of goods, services, tax payments, and the export of raw materials.

The high cost of credit financing and procedural hurdles to the approval of business operations have also been cited as factors holding back investment growth in the landlocked South-East Asian nation of some 7 million.

The revelations come as the government looks to make efforts to improve business confidence and competitiveness in the country in advance of the ASEAN Economic Community (AEC) set to be established across the region by yearend. Endi