“This figure is a huge amount of capital but if construction of the Laos-China railway gets underway soon, this goal could be realised. Another significant thing is that we need to take a proactive approach in attracting investment into the country,” he added.

Laos has been affected by the global economic slowdown. Declining demand around the world has driven down the price of commodities like mining ores and rubber, key exports that generate important income for Laos.

Worse still, most rubber farmers are struggling to survive because of the slump in the price of rubber on the world market.

Laos mainly exports rubber to China but it currently sells for just 5,000 kip per kilogramme, down from 9,000 kip in 2012 and 17,000 kip in 2008.

The value of the investment sector has also declined in recent years so further improvement of the investment climate is required to entice foreign companies to Laos.

The e conomy is projected to grow at a rate of 6.9 per cent this year, lower than the government’s target of 7.5 per cent annually from 2016 to 2020.

But, Dr Leeber said, because Laos is part of the Asean Economic Community, many investors will increasingly be interested in doing businesses here and exporting to the rest of the region.

“The sectors involved will need to work harder to facilitate business taking into account the needs of entrepreneurs,” he said.

Critics say one of the most important things is to reduce the time taken to approve investment projects.

Over the past 10 years, Laos has been among countries in the region that have witnessed fast economic growth driven mainly by the inflow of foreign investment in the resource sector.

Between 2001 and 2010, economic growth was recorded at an average of 7.1 per cent annually, rising to 8.2 per cent annually from 2011 and 2013 before declining to 7.5 per cent more recently.