The Borikhamxay provincial authorities are allocating 4,500 hectares in Khamkeut district to develop into a specific economic zone (SEZ) to attract investors and speed up economic growth.
Many investors from both local and neighbouring countries have come to see the location and review the plans and have expressed a desire to open businesses there, but the authorities have not yet been able to give approval as they are waiting for confirmation from the government.
Construction of the port at Thasa-ard is well underway.
The area is to be called Viengkham-Thasa-ard SEZ, named after two of the villages there, and it is located where road no 8 joins with southern road no 13. These two roads will be used to transport goods to Vietnam and the Pacific Ocean in the east and across the Mekong River to the northeastern region of Thailand.
Most of the area is state owned and there are 7,312 people living there in eight villages. It is 90 km from the provincial capital, a Planning and Investment Department official said.
The department's Deputy Director Mr Bounthanh Vongsana told the Vientiane Times on Thursday that the area will become the hub of a transport link between Thailand and Vietnam once it is developed.
Locally-based Heuangsy Development and Construction Company has provided over 40 billion kip to build a check-point and port at Thasa-ard village to provide transportation services. Work on these two projects is on track and will be finished in the near future, according to a department report.
“Developing the zone is part of our national socio-economic growth after creating more options for investors to do business in the province with better facilities and incentives,” Mr Bounthanh said.
“The improvement is also part of the 7th National Socio-economic Development Plan (2011-2015) and will help us to graduate from being one of the least developed countries by the year 2020. This is one example of how the Lao government has been trying to improve the living conditions of people in the country and create a good environment for local and foreign direct investment,” he added.
In order to prepare for the development of the SEZ, Mr Bounthanh said the authorities plan to develop basic infrastructure, especially by building the friendship bridge across the Mekong River to Thailand and building a detour to ease traffic congestion.
The authorities will improve road access and water supplies as well as installing electricity delivery systems. They will build a warehouse, hotel, resort, park, healthcare centres and other facilities to attract investment.
Mr Bounthanh said the authorities are also encouraging local people to develop skills and products to meet the needs of the foreign investors in the SEZ, adding “I strongly believe that the SEZ will contribute directly to socio-economic growth in the province, especially through helping unemployed young locals to get jobs.”
This will also help battle the illegal workers problem, which still presents a challenge to the province.
SEZs are forms of economic development which identify specific locations to attract both domestic and foreign investors by offering tax and duty incentives in order to promote infrastructure development, services, production, skill development and the transfer of modern technology.
By Phaisythong Chandara (Latest Update August 17, 2012)
