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Vietnam to fund Lao army's development of rebel stronghold

Vietnam is to provide Laos with millions of dollars to develop a closed military zone in the northern mountains, which has been a centre of anti-communist insurgency since the Vietnam War.

A total of 72-million-dollars will be disbursed over the next three years to finance a development masterplan for the Xaysamboun special zone, drawn up by a state-owned Vietnamese firm.

Forty-six-million dollars will be spent on water supply, transport, construction and industry in the zone, which has been under the exclusive control of the Lao military since 1994.

Vietnam's official media says although Vietnam is the world's second largest recipient of overseas development assistance after China, all of the Vietnamese aid will be provided on a preferential or non-refundable basis.

12/04/2002 12:04:13 | ABC Radio Australia News

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