The Lao government plans to build 41 special and specific
economic zones in a bid to attract foreign direct investment to boost
development in rural areas.
According to a report from the
National Committee for Special and Specific Economic Zone Management
Secretariat Office, the government has listed 41 areas as special and specific
economic zones, of which 25 will be built over the next 10 years.
The government lacks the
necessary funds to build infrastructure in the special zones so it is seeking
foreign direct investment to develop these areas.
Most of the economic zones will
be developed in border areas and remote parts of the country.
National Assembly members have
approved a prime ministerial decree that enables the government to offer
significant incentives to potential zone developers.
The government has set up the
National Committee for Special and Specific Economic Zone Management with the
Deputy Prime Minister as chairman and other ministers, provincial governors and
the mayor of Vientiane as members. They will d raw up development policy for
the economic zones.
The government has also set up
the Committee Secretariat Office, which will provide technical support to the
committee in enforcing policy.
Over the next 10 years, the
government expects to source foreign direct investment of US$3 billion to build
infrastructure in the economic zones. This will exclude investment funding from
companies operating in the zones.
It is expected that the
economic zones will create about 50,000 jobs, and could boost local per capita
incomes to as much as $2,400.
Laos is already in the process
of setting up six special and specific economic zones. In Savannakhet province,
the Savan-Xeno Special Economic Zone will accommodate a commercial centre,
service areas and processing plants.
The Boten Golden Land Special
Economic Zone in Luang Namtha province and the Golden Triangle Special Economic
Zone in Bokeo province will be developed as commercial and service areas.
The Vientiane-Nonthong
Industrial Park and Xaysettha Integrated Development Zone in Vientiane will be
developed as a commercial and processing industry centre. The Phoukhiew
Specific Economic Zone in Khammuan province will accommodate a commercial
centre, service area and processing plants.
Developments in all of the
zones involve investment by the private sector, both from Laos and other
countries. The exception is the Savan-Xeno Special Economic Zone, where the
government is the sole investor and manager.
Infrastructure in the zones has
begun to take shape in recent years thanks to special investment incentives.
Companies are deciding to operate in these zones because they can obtain more
advantageous investment incentives than in other areas.
Businesses operating in these
zones find it easier to obtain investment permission and set up processing
plants due to easier import and export regulations and the availability of
infrastructure. Businesses are also given special tax breaks.
Business Desk
Vientiane Times
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment