China becomes biggest investor in Laos

China was Laos' largest foreign investor in the first 11 months of the 2012-2013 financial year with over 1.33 billion U.S. dollars worth of projects, Lao state- run news agency reported on Monday.

During the period, Thailand was the second biggest foreign investor with 416 million U.S. dollars, according to Lao Ministry of Planning and Investment (MPI).

The energy sector received most of the investment with 1.56 billion U.S. dollars, followed by mining sector with 1.09 billion U.S. dollars, said the MPI.

The largest energy investment was poured into the construction of the Nam Ngiep 1 hydropower project in Borikhamxay province with over 868 million U.S. dollars. Building of the dam will start in 2014 with construction expected to be completed by 2019. The dam will have a capacity of 290 megawatts.

The Lao government set a target of 8 percent annual GDP growth rate, which requires investment of at least 1.7 billion U.S. dollars.