I heard people complained a lot when it comes to the economic zone develop by chinese investors in Vientiane.
What about Malaysia investors for the economic zone in Savannakhet province, do Lao pepole want this project to start ?
Photo: Savan-Seno economic zone in Savannakhet province, Laos
Industrial park set for Savannakhet
The government on Sunday gave the green light to a Malaysian company to develop a commercial and industrial park in Savannakhet province to attract foreign investment along the East West Economic Corridor.
The project development agreement was signed in Savannakhet province between representatives from the government and the Malaysian developer - Pacifica Streams Development Company.
The signing was witnessed by Standing Deputy Prime Minister Somsavat Lengsavad, who is supervising the project, Savannakhet Governor Vilayvanh Phomkhe, ministry officials, and Taiwanese investors.
Under the agreement, the Pacifica Streams Development Company will spend US$14 million for infrastructure development on an area of 211 hectares at km 10 in Nongdeun village, Kaysone Phomvihane district.
The Governor of the Savan-Seno Special Economic Zone Authority, Mr Bouakham Sisoulath, said infrastructure development would include roads, electricity, water supply, telecommunications, water treatment and liquid waste management of factory discharge.
“The government will hold 30 percent of equity for the duration of the project by contributing the land use right, and Pacifica Streams Development Company will hold 70 percent of equity by contributing the development capital,” Mr Bouakham said.
He added that the concession period of the project is 50 years; after that all activities will be handed over to the Lao government.
The purpose is to support and serve the establishment of the export production zone; it will feature a commercial and services complex including shops, a vocational training centre, healthcare centre and other facilities.
The authority's Vice Governor, Mr Thongsay Sayavongkhamdy, told Vientiane Times that one of the main reasons that Chinese and Taiwanese investors wanted to do business in Laos was due to the increase in labour costs in Taiwan and China .
They were attracted to Laos because of the cheap workforce, whose labour they would use to produce goods for export to Europe and America .
Another reason was that Laos not only has political and economic stability, it also receives trade privileges from 42 countries so that export taxes are low.
Initially, the zone will contain light industrial factories such as those producing garments and plastics.
Mr Bouakham said that once the project was developed it would contribute to the local economy and raise the quality of life for local people, creating jobs for not less than 30,000 people, and generating direct and indirect revenue.
The company's International Relations Director, Mr Ong Siew Keet, said “We initially expect around 10 to 12 Taiwanese and Chinese companies to invest in the project”.
Mr Ong Siew Keet said that to achieve success the company hoped to attract about 100 firms to set up factories and produce goods for export.
The project development agreement follows on from the Memorandum of Understanding signed between the Lao government and the Pacifica Streams Development Company on May 18, 2007.
it still own by chinese malaysian. oh well that good since I have chinese malaysia girl friend. I could believe laos goverment could not come up with 15millions. or I forgot they don't know how to run a business.
Savannakhet was a hub between Vietinane and Pakse also a hub between Thailand and Vietnam. It was busy but fater 1975 became a sleepy town. I'm glad to see it revival again. I am still worry about the polution from the factory and the thrash when.
as we all know... lao government wouldn't fork out 100% of the $$ for any projects... name me one project if you can... without any sort of AID from other countries.
i just hope... alot of these projects get done before they pull out of laos..
I like the idea. I like the Chinese owned town in Vientiane too.
The Malaysians have a better repitation for eco-friendly stuff than the Chinese do.
Still, all individuals and people are different, maybe the Malaysians will try to enforce some strict rules on workers like they have in their own country.
I accept change, Laos should too. Only the ones that can adapt to change come out on top.
Its a good idea but producing plastic is not so eco-friendly. I wonder what will they do with all the waste, dump it in the Mekong and start a huge environmental problem. People live off the river (bathe,fish, etc...)Theres going to be dangerous chemicals in the area and its close to the residential zone. I bet theres going to be a Love Canal situation like in the early 80s in New York!
what i think about this is that its gonna scar the name of savannakhet cause it means heaven right ? and so if we bring in like an industry to it it will cuase polution ....SMOG!!!!!!!!
The industrial zone should be farther from the city to prevent pollution and to allow the city expansion in the future. The zone should be at least 25 kilometers away from downtown. 5 or 6 kilometers is still too close to the town. Move it away further.
