The project, operated by Vietnamese firm Vietnam-Phuong Group (VPG), is located in Dak Cheung district and focuses on mining bauxite. Construction of the USD 1 billion Bauxite-Alumina Mining Industrial Complex began in late 2022, covering nearly 9,000 hectares, making it the largest mining investment by Vietnam in Laos.
The Lao government granted approval for the project in September 2025. Following the completion of all necessary mining research and site clearance, the project is poised to become a major contributor to Laos’ industrial growth, energy supply, and potential exports.
Bauxite mining in Laos has a controversial history, particularly in neighboring Champasak Province.
See also: Laos Advances Large Scale Bauxite–Aluminium Complex in Sekong Province
Laos holds several structural advantages for aluminium production. Bauxite reserves are estimated at 200Mt, while the country is South-East Asia’s largest exporter of hydroelectric power. Installed and planned hydropower capacity of 18–28GW provides a competitive cost base for energy-intensive aluminium smelting, where electricity typically accounts for around 30% of production costs. In addition, proximity to China and Vietnam offers logistical advantages, lowering transport costs to key Asian end-markets.