The $547 million project includes a plant and animal quarantine facility, logistics park and export processing and free trade zones. The Lao investor is also considering building a landmark shopping center to leverage the growing tourism industry as high-speed trains bring in more tourists and shoppers.

The recent inauguration of express trains connecting Bangkok with Vientiane is adding significant momentum to the flow of tourists across the region.

Lao Deputy Minister of Information, Culture and Tourism Darany Phommavongsa said the high-speed railway has made a significant contribution to facilitating both domestic and international travel, driving robust growth.

In the first four months of this year, Laos welcomed more than 1.5 million foreign tourists, an increase of about 35 percent compared to the same period last year, according to industry figures.

Chinese tourists numbered at least 351,000, making China the third largest source of foreign visitors to Laos after Thailand and Vietnam.

Darany said Laos is striving to develop more tourist attractions, upgrade infrastructure and improve hospitality services to meet the growing market and maximize benefits from the sector.

As the railway makes Laos more attractive to investors and creates new jobs, the World Bank projected that the transport network could potentially increase aggregate income in the country by up to 21 percent over the long term.

To achieve this, the bank emphasized that Laos should undertake bold policy reforms to facilitate trade and improve connectivity and the business environment.

"These reforms will be necessary to make the country more attractive as a new investment destination," it recommended.

VIENTIANE TIMES