South Korea’s Dongbu Corporation has been awarded a construction project in Savannakhet province worth about USD 25.6 million.
The project, ordered by the Lao Ministry of Agriculture and Forestry, will see Dongbu Corporation build, improve and repair filtration plants, irrigation canals, and roads in the province.
As of May last year, the total value of overseas projects by South Korean construction firms stood at USD 8.8 billion, a 35 percent drop from the previous year, according to the International Contractors Association of Korea.
After a decreasing number of construction projects in the Middle East, many in South Korea believe firms should look for new opportunities in Southeast Asia, where many countries are witnessing rapid economic growth.
However, such a view was discouraged after a dam project in Laos led by South Korean company SK Engineering & Construction collapsed in 2018.
Industry observers in South Korea have noted it might be difficult for South Korean construction firms to score projects in Laos since the dam collapse, especially given the situation where the Lao government and SK Engineering & Construction remain are in a at at odds over the cause of the dam collapse.
Amid such concerns, South Korean President Moon Jae-in expressed his gratitude for the Lao authorities maintaining trust in South Korean companies despite the collapse case during his meeting with his Lao counterpart President Bounnhang Vorachith in November last year.