Laos approves new Specific Economic Zone

Under an agreement signed between the government and the zone executive board in Vientiane on Friday, private companies will invest at least US$80 million to develop the 1,035 hectare zone.

The agreement was signed by Minister of Industry and Commerce and Vice President of the Lao National Committee for Special Economic Zone (NCSEZ), Dr Nam Vinhaket, and Deputy Director of the Khammuan provincial Department of Planning and Investment and President of the zone executive board, Daolay Keoduangdy.

Khammuan provincial Governor Khambay Damlath, Chairperson of the SK-KS Import-Export Company Kosy Phoumsavanh and Chairperson of the Chaleun Housing and Construction Company Phongsavan Xayaseng also signed as witnesses to the agreement.

The signing was attended by Deputy Prime Minister and NCSEZ President Somsavat Lengsavad, Minister to the Government Office and NCSEZ Vice President Bounpheng Mounphosay, and other high-ranking officials.

The third Lao-Thai Friendship Bridge, linking Khammuan province in central Laos to Nakhon Phanom province in northeastern Thailand, opened in November last year. Local authorities want to develop this area through various facilities to encourage the inflow of trade and investment in Laos.

Planned developments for the Thakhek SEZ include offices, healthcare facilities, a shopping centre, hotel, conference centre, residential buildings and a logistics centre.

The new zone will be planned with environmental considerations in mind, as well as safety and the need to preserve Lao character.

According to government officials, 80 per cent of the zone’s total area has already been reserved by private companies interested in setting up operations after seeing the potential for regional integration.

The zone will be managed in line with the one-stop service system and electronically monitored to ensure transparency and accountability, and will be a major boost to socio-economic development in the coun try.

Special economic zones help to accelerate economic growth while generating job opportunities for local people.

As wealth trickles down to local communities, Laos will move closer to its goal of leaving the list of least developed countries by 2020 .

Laos has the advantage of a stable political situation that is conducive to foreign investment. In addition, the country is becoming increasingly connected to the rest of the region and the world through new roads and bridges.

Laos also has cheap labour and receives trade privileges from more than 40 countries, paving the way for more business opportunities.