FACTORS AFFECTING INVESTMENT DECISIONS IN SPECIAL ECONOMIC ZONES AND SPECIFIC ECONOMIC ZONES IN LAO PDR

This research aims to study the investment context and factors affecting investment decision in special economic zones and specific economic zones in Lao PDR. The interview form is used in the in-depth interview with 2 groups of specific informants, namely 1) executives for foreign policy, Ministry of Industry and Trade/Ministry of Planning and Investment, and 2) representatives of the National Committee for the Protection of Special Economic Zones and Specific Economic Zones, those overseeing and being in charge of management of each special economic zone and specific economic zone and executive committee or administrative council of each special economic zone. The study reveals that factors influencing investment decisions in Lao PDR's special economic zones and specific economic zones are as follows: diverse and abundant resources, low production cost, low wage, suitable geographic location and international trade and investment promotion policy. Special promotion policies or suitable investment strategies in those areas must be formulated by Lao PDR's main agencies responsible for facilitating investors along with the improvement of factors that are able to enhance better investment in all areas. This is to attract more attention of both domestic and foreign investors for maintaining continuous and sustainable competitiveness of Lao PDR.