Govt supports logistics service centre
Govt supports logistics service centre
The Government has agreed to offer in principle support for a proposed logistics service centre project during a visit from investors from China between December 3 and 5.
Head of Secretariat to the Lao National Committee for Special Economic Zone (LNCSEZ) of the Government Office, Ms Bouatha Khattiya said the Lao government was glad to provide cooperation towards the project which would further the country's economic expansion.
The investors led by Vice Executive President of the China Communication and Transport Association, Prof. Wang Derong and President of Yuan Cheng Logistics Co., Ltd, Mr Yuan Cheng Huang met Ms Bouatha at the Government Office in Vientiane last week.
During the meeting, she advised the Chinese side to prepare official documentation for th e investment proposal and provide other necessary information.
She also asked for a memorandum of understanding (MoU) document relating to a feasibility study to examine the potential areas to site the centre.
In order for the project to move forward, the LNCSEZ secretariat will organise consultations with relevant sectors including ministries of Finance, Public Works and Transport and Industry and Commerce, Ms Bouatha said.
A report will then be made to the government for consideration.
Logistics in Laos is still poor and key routes require improvement to ensure smooth transportation and timely movement of people and goods.
She said the project could be useful in catalysing further logistics system improvement and help to improve the country's economy while helping to raise the relationship between the countries.
Prof. Wang said prior to twenty years ago, the Chinese government had not as much understanding about importance of logistics.
The Chinese government has since understood that the logistics sector is the basis of the country's economic development.
The centre would not only facilitate export of goods from China to Laos and distribution to other countries such as Vietnam, Thailand and Cambodia but wou ld also encourage movements in the opposite direction, Mr Yuan Cheng Huang said.
The Yuan Cheng Logistics Co., Ltd is a major sector player in China.
The company currently has both sufficient funds and vehicles to implement the project and is awaiting approval from the Lao government to go ahead, Mr Yuan Cheng Huang.
Once the government has been sent the MOU draft for the feasibility study the project can be enhanced prior to signing the final agreements.
