Laos-Japan JV launches in Savan-Seno
Laos-Japan JV launches in Savan-Seno
Lao-Japanese joint venture KP Beau Lao Company Limited (KPBL) officially opened its factory in Savannakhet province on October 17 for the production of cosmetics, sanitaryware and toys, after obtaining a licence last December.
The opening ceremony was attended by Minister to the Government Office, Ms Bounpheng Mounphosay, and Governor of Savannakhet province, Mr Souphanh Keomixay.
KP Company Limited President, Mr Khemsath Philaphandeth, said KPBL has registered capital of 7,980 million kip, with the factory located in th e Savan-Seno Special Economic Zone on a 10,000 square metre site.
KPBL has three shareholders - Bureau Company Limited owns 65 percent, KP Company Limited 30 percent and the remaining 5 percent is owned by KP-Nissei Mizuki (Lao) Company Limited.
Mr Khemsath said the factory will produce goods solely for export, to Japan and Asean countries. They plan to expand into the European market and the United States in the near future.
The factory employs 70 people and plans to have 200 people on the payroll by the end of this year, rising to 500 employees next year.
Mr Khemsath said the company's presence would help to boost employment in Savannakhet and neighbouring provinces.
Savannakhet Governor Mr Souphanh Keomixay said KPBL's investment would contribute to economic development in the province and would also help to alleviate poverty, in line with the government's goal to eradicate poverty nationwide by 2020.
Mr Souphanh said KPBL was another investment by Japan in the Savan-Seno Special Economic Zone.
Japanese investors are already doing business in Laos and their operations are running well.
Nikon is building a manufacturing plant in the Savan-Seno Special Economic Zone, Nikon Lao Company Limited, for the assembly of digital SLR (single-lens reflex) cameras.
Nikon is investing about 62.4 billion kip (US$8 million) in the plant, which is set to become operational next month. There are also other Japanese and foreign investors running businesses in the zone.
Laos is boosting the production of goods for export to take advantage of the Generalised System of Preferences, which cuts tariffs on goods exported to more than 40 developed countries.
vientiane times
