Vietnam Invests US$3.67 Bln in CLV Development Triangle

10:17:21 AM | 3/15/2024

Vietnam has invested US$3.67 billion in the Cambodia-Laos-Vietnam (CLV) Development Triangle, spearheading 110 projects, contributing significantly with 24.2% of the projects and a commanding 44.3% of the capital value in both Laos and Cambodia.

Metfone, a telecom network invested by Viettel, stands at the forefront of Cambodia’s telecommunications market

Currently, the economy of the CLV Development Triangle is optimistic, according to experts. Investment and trade cooperation has been promoted as a lot of projects have been implemented in various fields like hydropower and mining/ore processing.

According to the Ministry of Planning and Investment, Vietnam has carried out 248 investment projects with a total registered capital of US$5.44 billion in Laos and 206 investment projects with US$2.91 billion in Cambodia. In the development triangle area of Laos and Cambodia, Vietnam has invested in 110 projects with US$3.76 billion (accounting for 24.2% of projects and 44.3% of registered investment capital in Laos and Cambodia). Of the sum, Vietnam invested in 65 projects with US$2.09 billion (accounting for 57.3%) and 45 projects with US$1.67 billion in Cambodia (accounting for 38.4%).

Vietnam's investment projects focus mainly on industrial crop growing, construction, mining and hydroelectricity. Many projects have come into stable operation and contributed positively to local economic development by generating state budget revenue, providing jobs for local workers and improving infrastructure like building roads, schools, clinics and helping raise social security through financial support, exchange and charity activities.

Meanwhile, five provinces in Vietnam's Development Triangle Area, including Dak Lak, Dak Nong, Gia Lai, Kon Tum and Binh Phuoc, have attracted 521 direct investment projects with over US$6 billion from 30 countries and territories, including two projects of Cambodian businesses.

To date, these five provinces have invested in a total of 48 projects with US$1.91 billion in Laos and Cambodia, mainly in the CLV area of Laos and Cambodia where 41 projects with US$1.65 billion are located (accounting for 44% of Vietnam's total investment in the CLV area of Laos and Cambodia).

However, according to the Ministry of Planning and Investment, these results are not commensurate with the potential and strategic relationship of Vietnam, Laos and Cambodia. Many sectors such as agriculture, clean energy and tourism are still not fully tapped. Barriers to investment still exist, including inadequate infrastructure, insufficient investment capital and unclear incentive policies.

To deal with this matter, Mr. Vu Van Chung, Deputy Director of the Foreign Investment Agency (FIA) under the ministry, proposed three-country coordination in building a priority mechanism to attract investment from other CLV countries, accompanied by increased ODA and FDI support. At the same time, the synchronous implementation of the Development Triangle Master Plan and the plan to connect the three economies is necessary.

He also recommended that authorities regularly review and promote the implementation of existing cooperation agreements, develop new agreements on labor and resolve procedural issues, costs and infrastructure. This will provide more favorable conditions for business and investment activities in the Development Triangle area.

By Giang Tu, Vietnam Business Forum