Globalization, foreign direct investment, and urban growth management: Policies and conflicts in Vientiane, Laos

This research focuses on the conflicts between urban growth management (UGM) in urban planning policy and the growing influence of globalization and foreign direct investments (FDI) in Vientiane, the capital of Laos. In order to answer the question, “Does FDI affect UGM in the capital city of Laos, Vientiane?” the article explores significant decrees, mandates, technical reports, field surveys, and interviews. The results revealed that FDI has been an important instrument in Vientiane for boosting the economy and supporting urban growth. On the other hand, core conflicts emerged between government growth-management policies and the spatial impact of FDI regarding transformations of land use, the physical environment, sociocultural values, and collaboration stages. Moreover, globalization and FDI not only influence economic growth, but also affect the implementation of UGM in Vientiane. Although the urban planning sector has been rather strict, the investment sector prefers to encourage both FDI and domestic investments by giving incentives. Therefore, to achieve more balanced development for this “least developed country,” collaboration between similar relevant institutions (e.g. planning, investment, and land management) should be considered necessary long-term strategies.

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