Factors Influencing Power Generation Investment in Lao People’s Democratic Republic

This paper aims to study factors influencing power generation investment by Thai business entrepreneurs in Laos. Two major factors were found to influence decisions and these are physical and societal factors and competitive environment factors. The forms of investment consist of joint venture, mixed venture, wholly owned enterprise, and portfolio investment. The study covered over 100 power generating entrepreneurs including very small power producers (VSPP), small power producers (SPP) and independent power producers (IPP) who have contracted with the Electricity Generating Authority of Thailand (EGAT). Research tools included close-ended and open-ended questionnaires; variable measure; statistics used in factor analysis; and binary logistic regression analysis in order to find an equation in selecting forms of investment. Physical and societal factors consist of five minor factors relating to political, legal, economic, geographical and cultural factors. Competitive environment factors include price advantage, marketing advantage, innovation advantage, number and comparative capability of competitors and competitive differences by country.