Government Policy to Support Investment in the Amata Industrial Estate in Lao People’s Democratic Republic from 2017 to 2024

Abstract

This research article examines the government policy to support investment in the Amata Industrial Estate in Lao People’s Democratic Republic from 2017 to 2024. The technique of qualitative research was employed. Data were collected using the techniques of documentary research and in-depth interview. Data were analyzed using content analysis techniques. Findings are as follows: (1) The Amata group commenced from the development of the real estate industry in Thailand from the 1987s with the promotion from the Thai government through BOI and the economic liberalization policy prior to its expansion to ASEAN. Amata has a strong capital structure with the possession of resources, business networks, and access to state mechanisms as well as a close relationship with the elites and the policy makers. This facilitated the investment expansion locally and abroad. The Amata group played a major role in the investment and development of the “Lao Amata Industrial Estate” in Champassak province through a joint venture company with the Lao state under the G2G cooperation framework. The investment in Laos distributed the production base, reduced costs, increased the border trade value, and strengthened the roles of Thailand in the economic stage as well as in political influence. (2) The investment in the Amata group was supported by Thai government agencies and multinational private organizations. Business elites played a leading role in the mobilization of the cross-border investment using the power networks in the public and private sectors. The Thai state used the mechanisms of “Thailand Plus” and “CLMV Connectivity” to support the investment. Lao state received privileges in the special economic zone. Amata used the strategy in establishing a joint venture company in Laos by selecting a strategic area as a smart industrial city with the support from the Thai government and other financial resources. (3) The Amata group has a strong relationship with the Thai government at a policy level. It receives support from public agencies in the aspects of capital, rules and regulations, and investment promotion abroad. This reflects the structure of the capital-state interdependence which facilitates the investment expansion in Laos. The investment of the Amata group in Laos is an example of the role of Thai capital in advocating the strategies at a regional level. The Thai investors play a role as mediators in the policy to connect the state with the market and promote the transfer of capital and the expansion of economic influence in the region. International organizations play a supporting role through the project of infrastructure in Laos under the policy networks at a regional level integrating the CLMV economy between Thailand and ASEAN.