1 INTRODUCTION The necessity of research The gravity of lag behind of the national economy in general, and in Scope of research: Theoretical: Mainly refers to the theoretical issues of investment and development investment, the theory of investment and economic particular localities increasingly evident, therefore to promote economic growth, development create jobs and contribute to economic restructuring as well as economic On a practical level: Understanding, analysis and evaluation of the current stability and improve the lives of the tribal people, a necessary and important sistuation of economic development investment in Vientiane, offering the condition is how to invest capital and use of resources for the economy by the major solutions for Vientiane’s economic development investment in the most effectively near future Based on that research, I chose the topic: "Economic development The range of space and time: The theory is conducted within the subject investment in Vientiane’s period 2007 - 2011 and vision to 2020" and activities of development investment for Vientiane, the data for A review of empirical research on economic development in the countries research focusing in the period from 2007-2011 in the region and around the world Research Methodology History of economic development shows that, each country depending on The thesis uses the methods of dialectical materialism, combined with the the different conceptions of the subject matter and objective of the leaders chose history and logical methods, mathematical methods, statistics, modeling the different model of development: Emphasizing rapid growth issues, and systematic approach emphasizing equality, social fair and comprehensive development The research methods using: dialectical materialist method, combined The Objective of the study with the history and methods of logic, analysis and synthesis, statistic, To systemlize and contribute to improvement of investment theory in mathematical models and systems approach economic development, which defines the role of investment for growth and - The method of historical materialism and the systems approach: The economic development, contents, factors affecting investment to apply to the research activities of mobilizion capital for development investment in specific conditions of Vientiane Vientiane are conduted in a synchronous manner, associated with the To analyse the situation of economic development investment in the capital, to assesse strengths and weaknesses, to clarify the scientific basis and practical, then propose the solutions for development investment in Vientiane’ circumstances, conditions and the particular stages - Statistical Methods: The thesis uses appropriate statistical data for analysis of capital mobilization for Vientiane’s development investment economy in time to meet the requirements of industrialization and - Comparison, reference methods: capital mobilization for Vientiane’s modernization, to meet the requirements of international integration development investment are reviewed on the basis of a comparison of its Object and scope of the research impact on the growth and economic development of Vientiane through Object of the research: each stage of capital mobilization, as well as to raise funds for The theory is focused on the scientific basis and practics in content of investment activities of economic development, solutions for development investment in Vientiane’s economy development investment of a number of countries in the region New contributions of the thesis: - Interpretation theoretical basis on the development investment process and factors affecting growth and economic development in Vientiane, given the system of indicators measuring the efficiency of the economic development investment process CHAPTER 1: DEVELOPMENT INVESTMENT IN LOCAL ECONOMY – THEORETICAL AND PRACTICAL BASIS 1.1 The concepts of economic development investment in local - Apply theories to measure and evaluate activities of economic development investments in Vientiane 1.1.1 The concepts - Propose solutions for Vientiane’s economic development from the development investment by width to by depth, ensuring development stability On the investor’s view: investment is activities using existing resources in order Structure of the thesis 1.1.1.1 Investment to increase the physical assets, human and intellectual resources to improve the living standards of the population or to maintain operability of the assets and available resources Besides the introduction and conclusion, the thesis is divided into chapters: - Chapter 1: Development investment in local economy – theoretical and practical basis - Chapter 2: Current situation of Vientiane’s economic development investment period 2007-2011 - Chapter 3: Solutions for increasing economic development investment in Vientiane to 2020 1.1.1.2 Development investment Before assessing the role development investment, we will study the concepts of growth and economic development, namely: - Economic growth: Economic growth is the increase in the income of the economy in a given period (usually a year) The increase is usually reflected in the scale and speed Thus, the nature of that growth reflects the change in economy’s output - Economic Development: Development is the process of increasing all aspects of the economy Economic development is seen as the process of change, both in terms of quantity and quality, it incorporates the complete process of both economic issues and social issues Thus, Development is a long-term process and decided by the economy’s internal factors 1.1.1.3 Economic development investment Based on the concept of investment above, economic development investment is understood as spending activites of capital and other resources in the current period in order to maintain and increase operational assets (the tangible l and intangible physica assets) and other values of the economy, create more jobs and improve the living conditions of the populations 1.1.1.4 Economic development investment in local Economic development investment in local is spending activities of capital and 1.1.2.4 Strengthening science and technology other resources in each stage in order to properly exploit the local resources, Technology is a central element of industrialization, investment is an important increase the competitiveness of the local economy, contributing to increase factor affecting the decision to innovate and develop science and technology If economic growth, create more jobs and improve the living conditions of the the level of technology is obsolete, industrialization and modernization process populations managed by the local authority will be difficult and not kept up with the technological level of the world so to 1.1.2 The impact of economic development investment on economic growth be the barrier of the integration process and development 1.1.2.5 Strengthening the economy’s competitiveness and export 1.1.2.1 The impact on aggregate supply and aggregate demand in the economy Investment is not only to increase productivity but should focus on improving The impact on aggregate demand: To create products for society, invesment productivity, quality and reducing production costs It need to encourage first needed Investment is a major factor in the overall proportion of the whole investment in innovative technology projects, improving product quality and the economy According to the World Bank’s figure, investment nomarly development of clean technologies representing 24 to 28% of the aggregate demand for all countries of the world 1.1.2.6 Improving the quality of life for people Changing increased investment (I) make aggregate demand (AD) increased Economic development has always been associated with social security and national security State investment is priority on infrastructure, environment, AD = C + I + G + X + M The impact on aggregate supply: policies of economic development programs: education, poverty reduction, rural Aggregate supply in the economy is two main sources of supply, including in water supply development, transport systems domestic and off shore Domestic supply is represented by the following 1.2 equation: 1.2.1 Orientation of economic development investment in the local authority Orientation of economic development investment is first defined: objectives, Q = F(K,L,T,R ) K: Capital L: Labour R: Resource Capital sources for economic development investment T: Technology tasks and measures to attract local investment in a certain period of time (usually Thus, increasing the size of investment is the direct reason of domestic supply’s years, 10 years or longer) The objective of the economic development increase, if the other factors are constant investment strategy of a local authority is to decide the direction of long-term 1.1.2.2 The impact on economic development investment to growth economic development investment, including: the system of investment point of Expression of the relationship between development investment and economic view, the investment directions, the inportant investment targets and policies growth shown in formula ICOR (Incremental Capital Output Ratio) 1.2.2 Creating a legal framework favorable to economic development 1.1.2.3 The impact on economic restructuring movement investment in the local authority Investments have a significant impact on economic restructuring Investments The promulgation of legal documents locally derived from requirement of contribute to economic restructuring consistent rules and social and economic economic development investment in the local authority, but not contrary to the development strategy of countries in each period, creating a new balance in the laws of the State The aim is to establish the legal environment for the economic scope of national economies and between sectors, areas development investment activities in the framework, and create favorable conditions for investment in economic development effectively Property and benefits is the top concern of the participants in economic development 1.3.3 Foreign investment capital investment Foreign investment capital includes the entire accumulated by individuals, The State’s views on economic development investment is the guiding ideology enterprises, economic organizations, foreign governments that can be mobilized across from determining the direction and goals, the defining the tasks and for development investment of the host country policies 1.3.4 Effect relationship between the two types of capital 1.2.3 Direction organization, operations of economic development The relations between domestic capital and foreign capital exists a strictly investment in the local authority organic They interact with each other, stimulate each other to create greater - Organize the system of management object strength for the development of each country It is important that we have some - Organize and operate management subject information about this relationship, thereby enabling it to promote rapid and - Operate the management subject and management object limiting effects of impairment, if any 1.2.4 Checking, controlling and regulating the activities of economic development investment in the local authority This content includes the overall activities of the State in order to detect and handle errors, crashes congestion problems, as well as finance, opportunities to promote economic development investment in the local authority for the strong growth in the right direction 1.3 Capital sources for economic development investment 1.3.1 The nature of economic development Capital sources is the accumulated value expressed as transformed into investment capital to meet the requirements of social development Thus the investment capital source is the accumulated savings or the economy can be mobilized to put into the process of social reproduction This is proved by the classical economics, political economy and Marxist-Leninist modern economics 1.3.2 Domestic investment capital source Domestic investment capital is the accumulation of internal economy include savings of residences, economic organizations, coporates and government savings mobilized to social reproduction, including: - State Funds: Including funds of the State budget, the State’s development credit and development investment capital of state-owned enterprises - Capital sources from residential and private sector: Including savings of the population and the accumulation of private enterprises, cooperatives - Domestic capital plays the decisive role - Foreign capital plays an important role 1.4 Basic contents of development investment - Investment in additional inventory - Investment in human resource development - Starting the process of formation and implementation of investment, contents of development investment - Investment in marketing activities - Investment in research and development activities of science and technology 1.5 Contents of State management on economic development investment - Orientation for economic development investment in the local authority - Creation of a legal framework favorable for economic development investment in the local authority - To direct organization and operation of economic development investment in the local authority - Checking, controlling and regulating economic development investment in the local authority 1.6 The evaluation criteria of results and effective of economic development investment in the local authority 1.6.1 The evaluation criteria of results of economic development investment in the local authority - The volume of implemeted investment capital - Fixed assets and production capacity increased 1.6.2 The evaluation criteria of effective of economic development investment in the local authority Economic effective - The increase of production value compared with the entire capital to taking effect during the period studied (HIv(GO)) - The increase of gross domestic product compared with the value of fixed assets mobilized during the period studied (HF(GDP)) - The investment capital per needed to increase unit of gross domestic product (calculated for each locality, and the entire economy) or unit of added value (calculated for each sector) 10 CHAPTER 2: CURRENT SITUATION OF VIENTIANE’S ECONOMIC DEVELOPMENT INVESTMENT PERIOD 2007-2011 2.1 Economic - social overview of Vientiane 2.1.1 Geographical location Vientiane is located in central Laos, within the range from 17°47’50 to 18°22’38 North latitude and from 102°5’40 to 103°09'37 5'40 east longitude, with a total area of 3920 km² (about 1.7% of the country), the average population in 2009 was 795,159 people (about 13% of the population), density of about 203 persons The social effect of development investment activities /km² Population of Vientiane distributes very unevenly, while the suburban 1.7 district with population density is very low as Sangthong 37people/km², Factors affecting investment in economic development investment in the local authority Naxaythong 49people/km², the district wrath of the densely populated Development investment activities are affected by many economic factors (the Chanthabuly high as up to 2,252 people/km², Sisattanak 2,018 people/km² investment function is influenced by the major economic variables such as Vientiane has currently districts as Chanthabuly, Sikhottabong, Xaysettha, interest rates, savings, income in which this variables also is a function of Sisattanak, Naxaythong, Xaythany, Hatxaifong, Sangthong, Parknguem other variables.) and non-economic factors (political environment, institutions, 2.1.2 Natural Conditions customs, culture and natural environment) Topography - Political environment, institutions, customs, culture Vientiane is located between three sides by high mountains and the rest of the - The effect of the natural environment and natural resources Mekong River The terrain consists of two distinct areas: The first is the plain - The main economic factors south of Vientiane delta, the NamNgum river basin, an area of approximately Conclusion of Chapter 3,298 km², representing approximately 84.13% of the natural area Climate and Hydrology The climate is divided into two distinct seasons, the rainy season from May to October and the dry season from November to April of next year Natural Resources - Land Resources Vientiane’s land consists of 11 groups with 26 major soils in which soil is Alisols largest group followed by 38.07% to 30.85% Acrisols - Mineral Resources The minerals include: 11 Groups of fire minerals: gas, coal, peat 12 now has more than 32 banks and bank branches, many credit institutions and Group of metals: iron, about source points Gold has in many places but in funds contributed by the residents on the basis of the operational management of small quantities, manganese, lead and zinc the State Bank (the central bank) Group of non-metallic substances: salt, anhydrite rock 2.2 Vientiane’s investment situation in recent years 2.2.1 Divided by investment capital source Group of building materials: clay types, sand - gravel Group of gems: Tectit black stone jewelry (Silic) Table 2.6: Investment capital for Economic development investment divided by investment capital source period of 2007-2011 (current price) 2.1.3 Socio-economic conditions Unit: Billion kip Vientiane is a capital with the second largest population after SaVanNaKhet and villages all, communal areas and remote areas, 99% of households have Year 2007 2008 2009 2010 2011 Total (Bilion kip) 2.634,2 4.718,0 15.072,4 7.824,3 8.763,2 I State capital 227,8 411,6 1.601,5 745,4 857,2 State budget 36,2 51,3 59,9 73,0 86,1 Capital from State Enterprises 191,6 360,3 1.541,5 672,3 771,0 II Non-state sectors 443,2 599,5 935,8 262,3 407,6 Capital from Non-State Enterprises 393,3 412,8 750,0 197,5 240,9 Residents 49,9 186,7 185,8 64,8 166,7 III Foreign capital 2.013,2 3.706,9 12.535,2 6.816,7 7.498,4 FDI 1.600,7 3.196,3 12.349,4 6.090,3 6.608,0 ODA 412,4 510,6 185,8 726,4 890,4 (Source: Vientiane’s plan for economic- social development - Seventh 5-year) electricity Electricity for production and service activities is 24/24 and constantly 2.2.2 The implementation of economic development investment by industry increasing The economic development investment of Vientiane were analyzed focusing on province, in 2009 the total population of the capital, about 795 thousand people Labor force is about 415 thousand people, representing 52% of the population of the city Labour is working in the national ecomomic sectoers is about 75% Technical infrastructure - The transport system in the area, including waterways, road and air travel is very convenient for economic exchange with the region - Power supply Power supply for Vientiane is now the national power grid through substations Phon Toong, Vientiane Currently, the grid has to 100% of communes three main areas: industry, agriculture and services - Water supply and drainage Table 2.9: Investmen capital by industry sector of Vientiane Vientiane use surface water from the Mekong River and Ngum river is mostly Unit: Billion kip sip And other districts are mostly used well water, only a few of the small water 2007 system capacity to serve the residential areas of the district center currently use G 2009 2010 2011 T ng s Industry - Telecommunication system Laos 2008 telecom systems In general, post offices and telecommunications are responsive to the needs of communication, issued in local newspapers, but still take advantage of the capacity of the system above 919,4 1.749,4 5.352,2 3.695,5 3.067,1 14.783,6 37,9% agriculture 598,8 1.120,0 2.500,0 1.723,0 2.015,5 7.957,3 20,4% services 1.116,1 1.848,6 7.220,2 2.405,8 3.680,5 16.271,2 41,7% Total 2.634,2 4.718,0 15.072,4 7.824,3 8.763,2 39.012,1 100,0% (Source: Vientiane’s plan for economic- social development - Seventh 5-year) - The system of financial - banks Structure of budget has been gradually improved for more consistent, using budget is managed tight, ensuring expenses is right purposes The Capital 2.3 Situation of economic development investment management activities 2.3.1 Established the orientation of economic development investment 13 In recent years, the government of the Capital has many activities to guide 14 in the following table: economic development investment activities The Capital was distinguished Table 2.22: Some evaluation criteria and performance of Vientiane’s business functions of the enterprises with the state management function in investment activities period 2007 - 2011 shaping economic development investment Unit : Billion Kip 2.3.2 The investment environment is more open and built more confidence Ord Criteria 2007 2008 2009 2010 2011 The amount of economic development investment of the city has increased GDP real several times compared with the previous period, ∆ GDP The investment environment is more open Total Investment 2.3.3 Implemented support and regulated economic development investment HIv(GDP) 0,15 0,12 0,09 0,28 0,05 ICOR(GDP) 2,13 3,01 9,73 3,25 2,54 Over time, the Capital also implemented basic support functions and regulated economic development investment The Capital promptly provided information 10.462,68 12.298,56 12.977,44 15.397,74 17.199,28 698,22 1.835,88 678,88 4.718,00 15.072,40 7.824,30 2.420,30 1.801,54 8.763,20 39.012,10 (Source: Vientiane’s plan for economic- social development - Seventh 5-year and the author’s caculation) on laws and policies of the state government, the competition information, the business environment for enterprises in the Capital Evaluation of social-economic efficiency Vientiane’s economic development 2.3.4 Inspection, cheking investments In recent years, the Capital has also increased inspections, checking the Regarding to social- economic efficiency and human development of the economic development investment activities in the Capital Every year, the Capital: rapid economic growth and constantly had created favorable conditions Capital has plan of inspections and checking the areas under their management for progress in implementing the goals of poverty reduction in Vientiane 2.4 Assessment of the situation of Vientiane’s economic development Poverty rate has declined rapidly in the reform era, the poverty rate from 46% to investment period 2007 – 2012 27.6% during this period Along with poverty redution, income per capita in 2.4.1 Investment result and effect Vientiane has been rapid increasing in the reform era GDP per capita rose from The impact on economic restructuring movement Vientiane 298 USD (1993) to 1800 USD (2011) As of 2011, Vientiane’s economic structure has achieved certain success, there 2.4.2 The limitations and causes are many new industrial sectors established and developped In which, sectors 2.4.2.1 The limitations such as manufacturing large proportion of food, canned foods and 41.54%, Despite many attempts, Vientiane’s economic development has not achieved the followed by industry production facilities and spare parts, repair accounted for desired results and the performance We can see some of the following 15.81%, the production of metal products 10.56 %, the textile industry is not inadequacies: small proportion of 9.90% Thus the proportion of industry development are a) investment capital structure is irrational small and also very modest b) Investment in science and technology has not been paid enough An indicator of outcome assessment and effective Vientiane’s economic attention development investment c) The weak infrastructure and low production efficiency To evaluate the results and effectiveness, we can use indicators such as GDP d) The management of the state though improved but still some limited increases, investment apital promoting effects HIV, ICOR indicators are shown 2.3.2.2 Causes and Challenges 15 Vientiane’s development Investment has not achieved the desired requirements derived from the following main reasons: a) The difficulties of the human resources b) The low capacity of the enterprises in Vientiane led to the competitiveness of commodities low and unstable 16 CHAPTER 3: SOLUTIONS TO STRENGTHEN ECONOMIC DEVELOPMENT INVESTMENT IN VIENTIANE BY 2020 3.1 The perspective and orientation of economic development investment of Vientiane c) The supports and services have still not met the development requirements 3.1.1 The context of domestic and international development d) Management and administration capacity is limited The international context e) State policies on management development investment is still insufficient Economic globalization is an objective trend and is spreading No countries that f) Investment capital for development is lack and limited can stand apart from that without affected Assigning and international labor Conclusion of Chapter cooperation is also developing vigorously and on a sweeping in all areas of economic and socio-cultural Domestic context Lao has rich natural resources, especially hydropower, mineral resources such as gold, tin, iron, gypsum, potash, coal An area of natural forest is big and rich Lao has a stable political, high economic growth and step by step carrying the international economic integration Market mechanism is improved The international and regional cooperation increasingly is expanding 3.1.2 The perspective of economic development investment in next future − Developing the capital Vientiane requested to have foresight, towards modern civilization but retains the value of capital with a clean green environment and bring specific cultural identity of the tribes of Lao − Ensure minimizing the distance difference between the Vientiane capital with capital of other countries in the region − Maintain and increase gradually to the top of Vientiane in socio-economic development of the country, especially for the Central and Northern Lao − Step by step to modernize the economic structure Creating more powerful shift of economic structure in the direction of promoting rapid development of the service sector, especially tourism, and commerce, the development of the industry − Fastening to economic growth with equity, social progress, improve the material life, people's cultural life, making poverty reduction program, 18 17 reducing the disparity between rural, urban areas with mountains, creating Increased service: 13.56% the harmonious development between regions The growth rate of the GDP between 2016-2020 is 10%-11% per year − Developing a stable society in which people have to be interested, and also the purpose for development − Incorporate synchronization between production and development with the Of which: agriculture increased 9.4% Industry: 13.5% The service increase: 12.7% development of infrastructures on the regions, including rural areas and The economic structure in 2015: mountain Agriculture-industry-services: 17%-47%-36% − Make sustainable economic development towards protection, regeneration, The economic structure in 2020: and enrich forest resources, the resource of land and water resources, Agriculture-industry-services: 13%-45%-42% protection of the environment Protecting and promoting more cultural Coefficient of ICOR period 2011-2015 and the 2016-2020 period and 3.25 traditions, particularities of Vientiane as well as of the entire country and 4.1 respectively − Closely match between economic development and consolidating security Pushing foreign economic relations Establishing some sectors and main defense, strengthening the political system and a strong administrative export products Striving export turnover of about 200 million US dollars by background 2015, 2020 is over 1,100 million Make sure the average export growth rate in The Mission of the country, the region with the capital Vientiane in next time the 2006-2010 period is 30-35%, the period 2011-2020 is 19-23% Vientiane as the largest economic center of the country must have a steady Striving for budget mobilization rate of GDP by 2015 is 40-45% in 2020 average annual GDP is higher than the national average of 1.3-1.5 times, i.e and is over 50% Create a steady source of revenue to not only ensure the must reach 11-12% per year for the five-year period, the speed increase as is the resources spent on development of the capital but also contribute more and more duty of the country set off for Vientiane (if not done are shrinking the role of to the central budget Vientiane, take the lead entice other local development) Controlling inflation at 6% under the level where inflation in industry 3.1.3 The goal of Vientiane’s economic development under 5%, in agriculture under 4%, in the service sector under 6% The general objective of socio-economic development in the capital Vientiane is Social goals building it became a center of economy, politics and culture with the highest The population in 2015 of about 908 thousand and 2020 is 1,158 thousand development; specific targets have done until 2015 to 2020 are as follows: (up 320 thousand of people so in 2010) the population growth rate averaged The primary economic objectives between 2011-2020 is 3.29% GDP per capita reached 3,403, USD in 2015, higher than the average of 2.3 times and about 5,734, USD in 2020, higher than the national average of 2.7 times The average growth rate of the GDP between 2011-2015 is 11%-12% per year Of which: agriculture: 10.30% Industry: 14% Raising the General indicator of human resource development (HDI) from the current 0.55 to 0.65 0.60 by 2015 and 2020 Focus on developing the cultural and sports activities form the centers of entertainment to attract youths to healthy cultural activities Other targets 19 Ensuring social security and defense, minimizing the social evils as the 20 Lao is integrating into the world economy, especially ASEAN The basis for stability and economic development, create to firmly safety for the international market in the years to come could take place more vibrant, the flow sovereignty and independence of the country of investment capital, ODA, FDI is there are showing signs of recovery Greening the barren hills, the forest cover rate increased from 43% in 2002 to about 56% 60.7% between 2015 and 2020 Upgrading quality of coverage Ensuring clean environment for both urban and rural areas Make Suring the speed of technological innovation reaches 20% in 2015 and 25% in 2020 Striving to some areas of science and technology of Vientiane reached average levels of the countries in the region by 2020 3.2 The SWOT analysis in Vientiane’s economic development 3.2.1 Strengths The impact from the capital The policies are implemented for business, attracting investment and 3.2.2 The weakness The growth rate in the past years a quite high but sustainable, quality growth not meet the needs of social development The life of every population is still low, the difficulties on the economy, culture, social problems not yet resolved in short time The infrastructure system of the capital was invested to build but not yet fully in sync, and modern Human resources is abundant but at low levels State officer is still in low management level Sate management about investment in the capital of Vientiane is not infrastructure policy, land, State enterprise reform, administrative reforms are professional, yet, still in the early stages of the process of learning effective 3.2.3 The opportunities The capital has many natural resources, mineral resources and land resources untapped, especially in tourist resources Have the manpower and labor prices and reasonable compared to other provinces in the country The impact of external factors In addition to the geographical location of the capital Vientiane borders Nong Khai province of Thailand in the friendship bridge over the Mekong River and other nearby provinces, Vientiane has the opportunity to exploit the advantages of the development of the surrounding areas The situation of economic, social and political stability and continuation of growth, the economic growth rate could reach 8.5% per annum, the accumulation of economic sectors increased The system policy mechanisms continue to be reformed, more openness, investment capital from the budget for economic development _ society is maintained Lao is in the process of integration into the world economy, regional, it welcomes to all economic sectors of the country on such investment, Vientiane, the capital of Lao, will have the opportunity to take over the investment sources The capital comes after other should learn a lot from the experience of other capitals in the region and the world Private businesses are increasing rapidly, big investors of the province or of other regions will also participate in the process The financial system, banks are in the process of expanding, and implement the Government's policy should are priorities for the people to business 3.2.4 The challenges The gap in economic development capital Vientiane with the other province and the region is still far The mission becomes the spearhead for other neighboring provinces to develop is very heavily because of low development point of the capital Vientiane Poverty rate of the capital Vientiane also is relatively high 21 Different systems between the provinces in the competition to attract investment, commerce will impact the flow of investment capital into the 22 3.3.2 Restructuring economic development investment in Vientiane in order to increase effective State management of economic development investment To improve the efficiency of state management of investment capital, moving some resources such as high-quality labor, finances The crisis of energy on a global scale can last longer, leading to the risk of economic development, while improving the quality of growth and sustainable global crises in some areas development need to restructure economic development investment capital by 3.3 A number of solutions to increase Vientiane’s development investment focusing on industry structure, the structure and composition of economic in future restructuring associated with the paradigm shift towards market growth 3.3.1 The solution to improve the system of State management policy on Orientation focused on a number of key industries, with breakthrough economic development investment of Vientiane - Focus on the development of key industries, greater revenue generation and The system of policy in economic development investment needs to follow requirements: - It is necessary to focus investment resources, those in favor of the mechanism, facilitate economic development investments Especially the policies to attract investment capital; the development regulation of investment economic development - Vientiane is the capital of Lao therefore the economic development investment in Vientiane is signification in economic political, social and industrial development to both create jobs while improving incomes for workers as well as increased capital revenues - Increase investment in agricultural produce clean, high-tech agricultural products for export - Increase investment in economic development should focus on investment in economic development of the service sector 3.3.3 Solution to maximum mobilization of investment capital for Vientiane’s economic development security defense areas For economic development, the capital city of Vientiane needed huge - The policy must be derived from the market principles and rules of market amounts of investment capital As predicted by 2020 the amount of investment economy, raising the strength of the economic sectors involved in the capital for the country is about 24,876 billion kip, including a great proportion development for the capital Vientiane Proportion investment of the GDP is very high (over − The policy must create mechanisms to encourage the development of the pattern, economic cooperation between Vientiane with other localities throughout the country - Central Government should have policies to decentralize economic 40%) Capital structure shows the dependence on foreign investors (mostly FDI) To achieve growth on average every year to 2015 is 12% per year, then the total capital needs during the 2011-2015 should be over 53,786 billion Kip management appropriate to encourage proactive Vientiane, positive (in current prices) investment in developing the local economy 3.3.4 Solution to operating organization, inspecting and controlling economic - Vientiane should have policies to encourage enterprises to improve product development investment and service quality, while expanding portfolio of industrial products and The problem posed for the administration of that time to promulgate the services, new investment products attracting strong investment in economic regulation, specific guidance is about procedures, time solving issues related to development activities investment in economic development Strengthening inspection and 24 23 control of the implementation of policy, strategy, planning, and investment THE CONCLUSION planning and economic development are complementary measures, as well as adjust the content timely to meet requirements in the development stages The Thesis studies the factors that impact the growth and economic Rearrange the appropriate apparatus, streamlined to avoid duplication and development in the capital Vientiane and point out elements: the political ineffective today; organizations manage enterprise investment system environment, institutions, customs, and culture; the natural environment and natural resources The thesis puts forward the target of evaluation results and the efficiency of investment in local economic development, such as: the GDP growth, the impact of investment capital, ICOR The thesis proposes solutions to economic development investment in Vientiane towards stable and sustainable development, in particular the following: Improving the system of State management policy in economic development investment of Vientiane includes: Incentive policies, attract investment capital for economic development; fiscal policy; resource protection policy environment and social factors in economic development investments Restructure economic development investment Vientiane in order to focus on industry structure, regional structure and economic sectors (precise mechanics, mechanic, electronics, industrial equipment and supporting) increase effective State management of economic development investment Organizational structure and management personnel for economic development investment; Executive reviewed the implementation plan Enhance the quality of human resources in support of investment in economic development; Increase the capacity of production and business, international economic integration for capital businesses  ... Vientiane’s economic development investment period 2007-2011 - Chapter 3: Solutions for increasing economic development investment in Vientiane to 2020 1.1.1.2 Development investment Before assessing... 30-35%, the period 2011 -2020 is 19-23% Vientiane as the largest economic center of the country must have a steady Striving for budget mobilization rate of GDP by 2015 is 40-45% in 2020 average annual... highest The population in 2015 of about 908 thousand and 2020 is 1,158 thousand development; specific targets have done until 2015 to 2020 are as follows: (up 320 thousand of people so in 2010)