Laos to set up 41 special economic zones

Reading Time: 2 minutes
One economic zone in Laos is located near the second friendship bridge to Thailand

In an effort to boost the country’s economic development, the Laos government has agreed to set up no less than 41 special economic zones, of which 25 will be launched over the next 10 years.

The National Committee for Special and Specific Economic Zone Management Secretariat Office said most of the economic zones will be developed in border areas and remote parts of the country to create employment and business opportunities.

However, the government lacks the necessary funds to build infrastructure in the special zones so it is seeking foreign direct investment to develop these areas. The government expects to source foreign direct investment of $3 billion for infrastructure development over the 10-year period. 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, according to government forecasts.

Six special economic zones are already in the process of being set up. In Savannakhet province, the Savan-Xeno Special Economic Zone will accommodate a commercial center, service areas and processing plants. The zone is about 2 kilometers away from the Second Friendship Bridge with Thailand. The zone, which is developed by a Malaysian company, Pacifica Streams Development Company, offers investors many incentives including a 10-year tax holiday starting from the initial profit year.

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, and 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.

There are many areas still untapped in Laos which present vast opportunities. Some industries that investors can participate in include tourism, banking, lottery, casino, rubber plantation and manufacturing. However, in Laos foreigners are prohibited from owning land and can only lease it with an extendable lease tenure ranging from 30–99 years depending on usage. For special economic zones, the maximum tenure is 75 years which can be sub-leased or extended.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

One economic zone in Laos is located near the second friendship bridge to Thailand

In an effort to boost the country’s economic development, the Laos government has agreed to set up no less than 41 special economic zones, of which 25 will be launched over the next 10 years.

Reading Time: 2 minutes

One economic zone in Laos is located near the second friendship bridge to Thailand

In an effort to boost the country’s economic development, the Laos government has agreed to set up no less than 41 special economic zones, of which 25 will be launched over the next 10 years.

The National Committee for Special and Specific Economic Zone Management Secretariat Office said most of the economic zones will be developed in border areas and remote parts of the country to create employment and business opportunities.

However, the government lacks the necessary funds to build infrastructure in the special zones so it is seeking foreign direct investment to develop these areas. The government expects to source foreign direct investment of $3 billion for infrastructure development over the 10-year period. 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, according to government forecasts.

Six special economic zones are already in the process of being set up. In Savannakhet province, the Savan-Xeno Special Economic Zone will accommodate a commercial center, service areas and processing plants. The zone is about 2 kilometers away from the Second Friendship Bridge with Thailand. The zone, which is developed by a Malaysian company, Pacifica Streams Development Company, offers investors many incentives including a 10-year tax holiday starting from the initial profit year.

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, and 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.

There are many areas still untapped in Laos which present vast opportunities. Some industries that investors can participate in include tourism, banking, lottery, casino, rubber plantation and manufacturing. However, in Laos foreigners are prohibited from owning land and can only lease it with an extendable lease tenure ranging from 30–99 years depending on usage. For special economic zones, the maximum tenure is 75 years which can be sub-leased or extended.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid