Prime Minister Abdullah Ahmad Badawi formally opened the tallest building in Laos - a plush, 14-storey hotel built on the banks of the Mekong River in the capital Vientiane.

The Don Chan Palace Hotel, finished in time for the Association of Southeast Asian (Asean) summit starting here today, stands tall in a city in which few building reach over six storeys.

Built by Malaysians

The 25-million-dollar, 240-room hotel was built in 10 months by Malaysia's Sun Holdings.

Abdullah said it showed how Malaysia and Laos, both members of Asean, could work together.

"This hotel is a good example of capacity-building in the area of tourism, trade and investment," he said.

The prime minister also cut a 13-tier cake at the event to belatedly mark his 65th birthday.