Khone Phapheng waterfall to become an economic zone
 
Vientiane Times, 7 April 2010
 
Authorities in Champassak province plan to establish a new special
economic zone, aiming to boost foreign investment in the province,
according to a senior official.
 
Deputy Director of the provincial Planning and Investment Department,
Mr Khambene Keokhounmuang, said yesterday the provincial
administration had agreed to earmark an area at Khone Phapheng, the
largest waterfall by volume in Southeast Asia, as an economic zone.
 
“We are preparing documents to seek permission from the government to
establish the special economic zone,” he told Vientiane Times.
 
He said the area would accommodate tourism-related businesses. The
Khone Phapheng waterfall and surrounding area is a popular tourist
destination where visitors can observe the lifestyle of local
riverside communities, as well as explore the remains of a railway
built by the French.
 
The waterfall is located about 130km from Pakxe, the provincial
capital of Champassak. The area is well-known as a habitat of the
endangered Pa Kha or Irrawaddy dolphin, a major attraction for
tourists, as the only other area they can be observed is a small
stretch of the Mekong River in Cambodia.
 
Mr Khambene said he was unable to provide details as to the exact size
of the zone since the particulars of the proposed project are yet to
be finalised.
 
He said the provincial authorities had given permission to a
Vietnamese company to conduct a feasibility study into developing
infrastructure in the zone, details of which will then be used to
calculate how much investors would be charged to run a business in the
area.
 
Officials said domestic and overseas companies investing in special
economic zones in Laos may be entitled to incentives including tax
exemptions or reductions. The process to approve investments in such
zones is also fast tracked. Champassak provincial authorities believe
establishing the special economic zone would attract foreign
investment into the province, although it would not generate tax
revenues for the local government.
 
Increasing investment in the province will not only advance economic
growth, but also boost employment and income opportunities for local
people.
 
According to a report from the department, foreign direct investment
in the province rose by 37.5 percent in the first quarter of 2009
compared to the same period of 2008.
 
The province approved 184 projects valued at a total of 3.285 trillion
kip (US$391 million) in the 2008-09 fiscal year. In the previous
fiscal year, 48 projects valued at a total of 826.7 billion kip (US
$97.2 million) were approved.
 
The majority of investments are in the agriculture, tourism, industry
and services sectors. With rapid socio-economic development expected
over the coming years, the province holds great potential for
investors.