(KPL) Oudomxay Province is positioning itself as a strategic economic hub of northern Laos, targeting 9,000 billion kip in new investment over the next five years, following a period of record-breaking growth that exceeded earlier targets by 400 percent, provincial officials said.

Speaking at a recent briefing, Ms. Chanthala Xaybounheung, Head of the Provincial Investment Promotion and Management Committee Office, said the province attracted more than 500 private investment projects worth over 12,000 billion kip during the previous five-year period.

“Four Centers” Development Vision

Looking ahead, Oudomxay is advancing its “Four Centers” strategy, aimed at transforming the province from a transit corridor into a destination for logistics, clean energy, value-added processing, and high-end tourism.

“Our objective is for private investment to account for 60 percent of total development funding,” Ms. Chanthala said, noting that the province is shifting away from raw resource extraction toward processing industries and regional service sectors.

Foreign Investment Drives Growth

Although domestic investors are given priority consideration, foreign investment remains the main driver of growth. China currently leads foreign investment in Oudomxay, accounting for 38 percent, followed by Vietnam, Thailand, and Japan.

To sustain momentum, the province is implementing incentives under Investment Promotion Law No. 62, including VAT exemptions and land rental waivers for priority sectors such as clean agriculture, education, and healthcare.

Infrastructure and Land Constraints

Despite strong investor interest, development continues to face structural challenges. Ms. Chanthala highlighted that many priority development zones still lack adequate roads, electricity, and water supply, slowing project implementation.

A major constraint is the absence of a State Land Bank. Without pre-designated state land for industrial development, investors must negotiate compensation directly with local communities, often resulting in lengthy delays and legal complications.

Strengthened Environmental Oversight

Environmental protection has also become a stricter requirement following several high-profile incidents, including a chemical leak at a gold mine in Phoubeuy District. Provincial authorities have opted for remediation measures, working with operators to improve waste containment systems.

Ms. Chanthala stressed that Environmental Impact Assessments (EIA) are now mandatory and non-negotiable for all investment approvals.

Strategic Projects and Outlook

The province has identified 47 priority “Call List” projects, including the Pak Beng Hydropower Project on the Mekong River and the development of Chom Ong Cave into a premium tourism destination.

By leveraging the Laos–China Railway and planned expressway connections, Oudomxay aims to establish itself as a regional logistics hub linking Vientiane, Kunming, and Hanoi, while upgrading exports from raw materials to high-value processed products.

KPL