The Ministry of Industry and Commerce and a Taiwanese investor plan to complete land clearance and infrastructure construction of a planned industrial and trade park within the next six months.
The industrial area will be located at Km 21 in Xaythany district, Vientiane . Deputy Minister of Planning and Investment Thongmy Phomvixay shakes hands with Mr Jensen Chen ( left ) after exchanging agreements.
A joint agreement on the development of the project was signed between the Ministry of Planning and Investment and Nam Wei Development Co Ltd last Friday in Vientiane .
“The area will be 110 hectares and is in a different area from the current Vientiane industrial zone,” said the Office Head, Ministry of Industry and Commerce, Mr Bounmy Manivong, in an interview at the ceremony.
The two parties hope to build 147 factories, including assembly plants for bicycles, computers, garments, pick-ups, plastic products and shoes. “The area is intended to manufacture goods for export,” he said.
It will also have a shopping centre, trade buildings, vocational institutions, schools, a hospital and a hotel. “It will be a model industrial and trade area in Laos ,” he said.
The project, named the Vientiane Capital Industrial and Trade Area, or VITA Park , is located in Nonthong village.
The two parties will operate the area for 75 years. “The company can negotiate with the government if it wants to extend the agreement,” Mr Bounmy said.
Laos will contribute the land as its share of the investment.
The company will invest in infrastructure and facilities to persuade or attract local and foreign businesses to invest in industry, trade and services.
It will build facilities for investors to lease or rent.
“We think that after six months or a year, there will be many factories built,” Mr Bounmy said.
Laos would benefit from greater production leading to an increase in exports, tax revenue and duty collection.
Employment is expected to grow to 60,000, with an eventual goal of 200,000. It will be a way to reduce poverty, he said.
However, the two parties are unable to identify costs as yet. They will have to conduct a feasibility study and design following the agreement.
“We will also draft a decree to manage and administrate the factories and the area as per the Prime Minister's suggestion,” he said.
The joint agreement ceremony was attended by 70 people including foreign investors from countries that are interested in investment in the scheme.
It was in line with a memorandum of understanding signed between the company and the Lao government last May.
whatever they built, if it is far from the city, and if they don't discharge wastewater, don't pollute air, and respect Lao law, then they should get a green light. More than anything else, local people should get some benefit from this projects.
malaysian want to build trade area in Dongphosy, hadsayphong, Chinese want to build new trade area on that luang marsh or other place to be defined Now, taiwan wants to build trade area in Xaythany.
Great, for developmeent of the country (if, as mentiend above, those projects are resectfull of environment, laos law, lao people...).
But are there enough business oportunities in laos for at least 3 project? are we sure diseminating investments into 3 project is not a risk? could it be more successfull if all the investments were concentrated in one place/one project? just a question.... i don't have the answer. I will personaly look closely after the malaysian project, but if there is enough place for more project, that's perfect.
