Laos Explores USD 1 Billion Vientiane-Lidu Industrial Park Development

On August 13, Laos announced plans to conduct a feasibility study for the Vientiane-Lidu Industrial Park, a project anticipated to draw around USD 1 billion in investment. The park will span 307 hectares across four villages in the Pakngum district and is expected to take 24 months to complete the study, according to local officials.

The proposed industrial park will be divided into three distinct zones. Zone A, covering 153 hectares in Natham and Phao villages, is designated for mineral processing plants, raw material storage, wastewater treatment facilities, and power infrastructure. Zone B encompasses 100 hectares in Nongdonng village, focusing on agricultural processing with sorting and processing facilities, as well as power and wastewater treatment systems. Zone C will occupy 54 hectares in Donhai village, housing administrative offices, warehouses, and worker accommodations.

This initiative marks the sixth feasibility study under Laos' new 2025 industrial zone decree, reflecting the country's efforts to diversify its economy beyond traditional sectors such as hydropower, mining, and agriculture. The Vientiane-Lidu Industrial Park is part of a broader strategy to promote industrial parks and special economic zones (SEZs) across the country.

“SEZs have supported manufacturing, services and industrial growth in Laos, but performance remains uneven.”Phonvanh Outhavong, Vice Minister of Finance

In addition to the Vientiane-Lidu project, other industrial developments are progressing in Laos. For instance, Oudomxay province is working on a 6,279-hectare clean-energy and aluminium zone. Furthermore, the Vientiane-Pak Ngum industrial estate is underway, with plans to attract over USD 165 million in investment and accommodate more than 100 companies.

According to Phonvanh Outhavong, Vice Minister of Finance, 21 SEZs have been approved nationwide, attracting 2,041 companies with registered capital exceeding USD 41 billion and planned investments of more than USD 86 billion. She noted that while SEZs have contributed to manufacturing, services, and industrial growth, their performance has been inconsistent. For example, tax revenue in the Golden Triangle SEZ saw a 49 percent drop to USD 1.5 million after the closure of 551 businesses, a situation attributed to tax collection issues and stricter enforcement reforms aimed at improving compliance.