FOREIGN DIRECT INVESTMENT OF REPUBLIC OF KOREA IN LAO PEOPLE’S DEMOCRATIC REPUBLIC

Abstract

The objectives of this research were: (1) to study overview of foreign direct investment of Republic of Korea in Lao PDR, (2) to analyze the competitiveness of Lao PDR in attracting foreign direct investment of Republic of Korea and obstacles for investment in Lao PDR, (3) to study the future trends for foreign direct investment of Republic of Korea in Lao PDR and (4) to provide suggestions for Lao social-economic development to attract further foreign direct investment. . This thesis adopted the secondary data from reliable sources such as, books, reports, treatises, magazines, newspapers, various researches and internet, together with the interview from 3 Republic of Korea’ companies in Lao PDR; For example, KOLAO Farm & Bio Energy Company, Booyoung Lao Bank.co,.ltd and Lao – Top College. This thesis presented the steady increase of foreign direct investment of Republic of Korea and ranked the 4th largest investor in Lao PDR. Furthermore, Diamond Model of Michael E. Porter has been used to analyze the competitiveness of Lao PDR, which received 9 sub-factors of competitiveness and 3 obstacles for investment in Lao PDR: (1) insufficiency of skilled labors, (2) poor infrastructure, and (3) limited researched and information that relating foreign direct investment in Lao PDR. The thesis ended by providing suggestions for Lao social-economic development to attract further foreign direct investment