Savan-Seno Special Economic Zone set to expand
Savan-Seno Special Economic Zone set to expand
The Savan-Seno Special Economic Zone C (SSSEZ) in Savanakhet province has already received investment from 26 companies and the construction of phase 2 is now around 30 percent complete.
The developer of Zone C, Mr Tee Chee Seng, said last week that the project is currently utilising 234 hectares for infrastructure development and expects construction of basic infrastructure to be complete by next year.
The project is on track to meet its target for completion in 2016.
150 companies are expected to be operating in Zone C by 2016 and 26 have already begun construction of offices, warehouses and processing facilities.
Mr Tee explained that companies are choosing to operate out of these zones because of favourable investment incentives.
“Businesses operating in these zones find it easier to obtain investment authorisation and set up processing plants due to easier import and export regulations and the availability ofnecessary infrastructure,” he explained.
Businesses operating in the zone are also given special tax breaks,” he added.
The Savan-Seno special economic zone is the first of its kind in the country, created to attract local and foreign investment and create job opportunities for local people.
Mr Tee confirmed Savan-Seno will be able to attract foreign investors in the near future because of the Lao government's investment policies such the One Stop Service policy for logistics, appropriate labour costs as well as tax breaks.
Mr Tee says he pities foolish businesses that fail to take advantage of these favourable conditions.
The zone will focus on Small and Medium-d Enterprises (SME's), which is a vital way to increase Lao economic growth as well as ensure permanent employment for Lao people.
The zone is one of five special economic zones in the country; the others being the Boten special economic zone in Luang Namtha province, the Golden Triangle special economic zone in Bokeo province, Phoukhiew special economic zone in Khammuan province and the Vientiane-Nonthong industrial zone
According to a report from the National Committee for Special and Specific Economic Zone Management Secretariat Office, the government has listed 41 areas as special and specific economic zones, of which 25 will be built over the next 10 years.
The government expects foreign direct investment of US$3 billion to build infrastructure in the economic zones. This excludes investment funding from companies operating in the zones
vientiane times
