A thesis submitted in partial fulfilment of the requirement for the Degree of Master of Science

Thesis (M.Sc.) - Asian Institute of Technology, 1994

After the revolution in 1975, Laos economy was growing very slow, so the government was tried to improve the economic development in many ways. In 1986, the government established the New Economic Mechanism (NEM) to improve the economic growth, the NEM affected many sectors of the development, especially for the foreign investment. The government exposed economy gate for the foreigner to invest in Laos. The Bridge is also one of the tool that the government brings to improve the economic development, because the Bridge can give the facilities to the investors. The Bridge was financed by the government of Australia and it is a first link between two countries through the Bridge on the Mekong River which is about 4200 km. The Friendship Bridge is newly opened between Lao PDR and Thailand. So the author has attempted to study the implications of the Bddge relating to economic growth, transportation, land use, question of sharing benefits between Lao PDR and Thailand and also in the regional context (Inda-China region). The study is focused on Vientiane (VT) of Lao PDR and Nang Khai (NK) of Thailand. The analysis of the economic information high lights on trade, tourism, investment and industry. The field survey examined impacts on VT and NK and focused on land use pattern, infrastructure development, traffic flow, and relationships between the two counties. The findings show that the Bridge has seemed to be created apparently negative impact on diffirents sectors developmet on Laos, but more positive results for Thailand, because the government of laos was not fully prepared to cope a new situation the Bridge. The Bridge is not a significant tool to stimulate the economic growth in Laos while it is very important for Nang Khai's growth and development, also the countries of the Inda-China region. The Bridge is linking the region, especially four countries' i.e Lao PDR, Thailand, Vietnam and China to strengthen the cooperation for economic and social development. The suggestion is to improve the rules and regulations of the governments and enforce those for implementation. Facilities of development should be infrastructures, human skills development as well as better planning practices of each sectors of economy.