Vietnam takes lead in FDI, China only third

It is a bit like a race: When it comes to FDI in Laos, Vietnam, Thailand and China chasing each other and changing positions quite often. A surprise for many is that China is now only third.

Bangkok Post reported: 

Vietnam leads all foreign investments in Laos, followed by Thailand - with mining becoming the most popular sector for foreign investors, according to the Lao government

The Lao Ministry of Planning and Investment said Vietnam invested in 429 projects in Laos, worth about US$4.9 billion (147 billion baht) from 1989 to 2011, followed by Thailand, which invested in 742 projects worth $4 billion, The Vientiane Times reported on Tuesday.

China came third with 801 projects, with a combined value of $3.9 billion. Other leading investors included South Korea, France, Malaysia, Japan, India, Singapore and the United States.

Mining is still the top investment, raising question how long this will last and how the economy will benefit from. Most money from mining is leaving the country or goes into the state budget as tax or fees - but not really into consumption.

Also many FDIs are announced, but never realised. Look at the shopping malls.