Phongsavanh Group, CMEC strengthen business cooperation
Phongsavanh Group, CMEC strengthen business cooperation
Two major Lao and Chinese companies, Phongsavanh Group and the China Machinery Engineering Company (CMEC), signed a memorandum of understanding (MoU) for business development and cooperation on Wednesday in Vientiane.
Attending the ceremony were the Honorary President of the Phongsavanh Group Prof. Dr Od Phongsavanh, who is also a Committee Member of Lao Front for National Construction, and CMEC Executive Director and President Mr Zhang Chun.
“The MoU is in accordance with the agreed directives of the 10th Congress of the Lao People’s Revolutionary Party pertaining to the support of developing foreign relations with our neighbouring countries,” Group representative MrChanthoneSitthixay said.
“It is believed that Laos and China are strategic partners and have always supported and helped one another,” Chanthone said at the signing ceremony.
“Therefore, within the contents of this signing document, the CMEC has agreed to provide support and assistance in developing and constructing the 2000 megawatt Coal Fired Power Plant Project located in Khammuan province.”
CMEC has also agreed to cooperate and assist in the development of projects in various industries such as energy, construction of infrastructure, logistics, trade, finance, human resource development and other sectors.
It will assist the Phongsavanh Group by providing modern technologies and resources for developing these industries.
“With the trust of our partners and colleagues, Phongsavanh Group will ensure that success will bear fruit for both parties from the signing of this MoU for the cooperation of business development and will further contribute to the development of the socio-economic wellbeing of the Lao people,” Chanthone said.
At the ceremony, DrOd, on behalf of the Lao government, presented aFriendship Medal Award to Mr Zhang Chun of the CMEC for distinguished cooperation and contribution to the development of business and relationship between Laos and China.
Mr Zhang Chun said that CMEC was founded in 1978. It is a conglomerate taking engineering contracting as its core business and integrating trade, R&D, and international services.
It has successfully reshaped its business approach and evolved into an internationally-reputed and leading engineering contractor in China and abroad mainly engaged in international projects and trade.
Meanwhile, over the past three decades, the Phongsavanh Group has grown step by step under its founder’s vision of conducting a profitable business enterprise, juxtaposed by bettering people’s quality of life and consolidating economic expansion.
The Group has grown remarkably since it diversified into various business sectors including the timber industry, telecommunications, trading, construction, banking and finance, mining, oil and petroleum products, airlines, franchises, innovation, convenience stores, logistics and insurance.
The timber industry emphasised the export of processed wood, which ended in 2008 in line with the government’s policy to preserve the country’s forests.
The Group has participated in the socio-economic development of the country progressively, paying taxes to the government annually.
In addition, it is a donor to ministries, organisations and the grassroots level and has assisted in times of natural disaster such as drought and flooding, as well as supporting national sports activities and important events.
Applying the Party’s Three Builds directive, the Group supported the policy by providing loans at low-interest rates to farmers to reduce their level of poverty.
Last year the government presented the Order of National Development to the Group.
It also received Class 1, 2 and 3 Labour Orders and other medals and certificates of congratulations from the government.
Regarding coordination with foreign countries, the Group has good coordination with Vietnam, Cambodia, China, Russia and Dubai, in the exchange of merchandise and investment.
It has representative offices in Vietnam, China, Thailand, Singapore, Malaysia and Myanmar which have helped Laos and its private sector to become better known in the region and at the international level.
