Foreign Direct Investment and Socio-Economic Development in Laos: A Case Study of Say Nha Bu Ly Province

Latsamy Simanichan

doi:10.59890/ijaamr.v4i5.217

Authors

Latsamy Simanichan University of Economics and Law, Vietnam National University Ho Chi Minh City

DOI:

https://doi.org/10.59890/ijaamr.v4i5.217

Keywords:

Foreign Direct Investment, Socio-Economic Development, Regional Development, Laos, Say Nha Bu Ly Province, Sustainable Development

Abstract

Foreign direct investment (FDI) has become an important driver of regional economic transformation in developing economies, including the Lao People’s Democratic Republic (Lao PDR). This study examines the role of FDI in socio-economic development in Say Nha Bu Ly Province, Laos, during the period 2010–2025. The research aims to evaluate both the positive and negative impacts of FDI on regional development and to propose policy implications for improving investment effectiveness. The study employs a mixed-methods approach combining descriptive statistics, comparative analysis, trend analysis, correlation analysis, and simple regression analysis based on secondary data collected from provincial statistical reports, government publications, and international databases such as the World Bank and UNCTAD. The findings indicate that FDI contributed positively to GRDP growth, employment generation, infrastructure development, income improvement, and poverty reduction in Say Nha Bu Ly Province. Foreign investment also supported regional connectivity, production expansion, and technology transfer. However, the study identifies several challenges, including uneven spatial distribution of investment, limited technological spillovers, weak labor quality, environmental risks, and institutional constraints that reduce the overall effectiveness of FDI. The study suggests that improving institutional quality, upgrading infrastructure, strengthening human resource capacity, and promoting sustainable and high-quality FDI are essential for maximizing the long-term socio-economic benefits of foreign investment in developing provincial economies

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