New law essential to spur development of special economic zones
New law essential to spur development of special economic zones
The creation of specific and special economic zones can be possible not only in coastline nations, but also in landlocked countries, a top government official has said.
The role of special economic zones is to promote infrastructure development, services, production, skill development and the transfer of modern technology. They are established in specific locations, offering tax and duty incentives to businesses which base themselves there, with the aim of boosting the local economy in these areas.
President of the Lao National Committee for Special Economic Zones, Ms Bounpheng Mounphosay, said that while the zones could well be achieved in landlocked countries, they did need to have good policy, political security, manpower and good management backed up by a legal system in order to attract investors.
Laos is in the process of drafting a law relating to special economic zones, aimed at creating more certainty and confidence among foreign investors wanting to do business in Laos.
Last week, officials in charge held a seminar in Oudomxay province to gather opinions from other officials in the northern provinces of Phongsaly, Luang Namtha, Bokeo, Oudomxay, Luang Prabang, Xieng Khuang, Huaphan and Xayaboury.
The seminar was co-chaired by Ms Bounpheng who is Minister to the Government Office, and Oudomxay provincial Governor Mr Khamla Lingnasone, and was attended by officials from the relevant sectors.
During the seminar, Ms Bounpheng briefed the participants about the situation of the special economic zones in the region before explaining the importance of the law if Laos wanted to attract investors.
She said the zones have been expanded significantly over the past 200 years, as in 1986, there were only 176 zones in 47 nations and by 2006 the figure had increased to 3,500 zones in 130 nations. Currently Laos has 10 special and specific economic zones.
During the meeting, participants debated a number of issues including the name of the law, forms of Special Economic Development, management mechanisms, tax policy and the significance of their development for Laos.
The draft law will have 15 parts containing 160 articles, and will define the principles, procedures and mechanisms related to the establishment and role of the zones when it comes to attracting investment to Laos.
Another consultation meeting will soon be held in Vientiane to seek more feedback before the draft law is submitted to the government for consideration.
The law is being drafted by the Lao National Committee for Special Economic Zones and the committee expects to submit it to the National Assembly for debate during its session at the end of this year.
vientiane times
