Chinese entrepreneurs have sufficient capital to build a new township in Vientiane as planned, despite the ongoing global financial crisis, according to a high ranking Lao official. Vientiane Vice Mayor, Mr Anouphab Tounalom, said on Wednesday Chinese investors remained committed to a project that will transform 600 hectares of land in the That Luang marsh area into a modern urban development. “We have no concerns the Chinese developers will pull out of the deal so we have not raised the issue for discussion,” Mr Anouphab told Vientiane Times. “The ongoing financial crisis has not had a strong impact on China and its financial institutions.” He said the Chinese investors in the project had not given any indication the economic downturn was a cause for concern. Mr Anouphab said the Vientiane authorities had completed demarcation of the development area. The authorities have allocated funds to compensate people who will have to give up their land to make way for the project and are preparing to distribute compensation. Mr Anouphab was unable to say when construction of the new township would start. Senior officials say work on the project will start within the next year, but only after the authorities have finalised land compensation payments. Economists say significant Chinese investment in Laos during the financial crisis will ensure the country achieves its economic growth target of 8 percent this fiscal year. One economist following current financial developments is senior lecturer at the National University of Laos’s Faculty of Economics and Business Management, Mr Somchit Souksavanh. He said Laos would have a significant advantage over other countries if Chinese investors injected large amounts of funds into the country during the global financial crisis. Such a large investment would narrow the development gap between Laos and other countries, Mr Somchit said. Many countries are predicting their economies will slow as investors struggle to obtain financial backing. One of the signs of a global economic recession was falling oil prices, Mr Somchit said. Economists believe lower global investment will reduce the demand for oil. Mr Somchit said strong investment in Laos would result in the setting up of many small and medium sized enterprises, which would create jobs and income for more people. He said the economic growth of a country was partly dependent on people’s purchasing power. The Chinese development project in Vientiane was agreed to last year when the government gave a Chinese company the right to use the land for a minimum of 50 years. In exchange, the company agreed to build a new National Stadium in Vientiane, which will be used for the 25th Southeast Asian Games next year. The stadium is being built at no cost to the government. The government said it had not allowed the company to rent the land, but had established a joint partnership with them which was beneficial for the Lao government and people. The government will have a 5 percent stake in the development project.