VIENTIANE -- China was Laos' largest foreign investor in the first 11 months of the 2012-2013 financial year with over $1.33 billion worth of projects, Lao state- run news agency reported on Monday.

During the period, Thailand was the second biggest foreign investor with $416 million, according to Lao Ministry of Planning and Investment (MPI).

The energy sector received most of the investment with $1.56 billion, followed by mining sector with $1.09 billion, said the MPI.

The largest energy investment was poured into the construction of the Nam Ngiep 1 hydropower project in Borikhamxay province with over $868 million. Building of the dam will start in 2014 with construction expected to be completed by 2019. The dam will have a capacity of 290 megawatts.

The Lao government set a target of 8 percent annual GDP growth rate, which requires investment of at least $1.7 billion.