New form of industrial development slated
New form of industrial development slated
The government will soon allow investors and local landlords to jointly develop industrial parks in Vientiane and Vientiane province, according to a senior official.
In the past the government has approved developers' applications for plots of land even when some of it was privately owned, compensating anyone living there for their relocation.
Due to the high cost of this compensation, the government has decided to introduce a new form of industrial park development whereby investors will directly partner with local landlords and cooperate on the projects together.
The new model also aims to address the problems occurring between State officials and local business people as many projects end up with affected residents and businesses complaining they are not getting enough compensation for their land lost to the projects.
Lao National Committee for Special Economic Zones (NCSEZ) Secretariat held a public seminar in Vientiane on Tuesday to explain about the procedures and requirements for applying for an industrial park development.
The seminar was attended by officials from the relevant sectors, businesspeople from Laos and overseas investors as well as representatives from the Japanese Embassy and JICA.
The seminar, which was chaired by Deputy Minister and Vice President of the NCSEZ Ms Bouatha Khattiya also served as a forum to discuss and exchange ideas and open opportunities for future cooperation.
Over the past years, the government has attached great importance to industrial park development to create an acceptable model.
For instance, in 2009-10, the government and JICA jointly conducted a survey of a land plot to develop an industrial park. However, the project was unable to be operated due to the high cost of compensation.
Laos currently has 10 special economic zones including three industrial parks. Special economic zones are designed to attract foreign investment to Laos, helping to accelerate economic growth and generating job opportunities for local peopl e.
The good thing for Laos is that the country has the advantage of a stable political situation that is conducive to foreign investment. In addition, the country is becoming increasingly connected to the rest of the region and the world through new roads and bridges.
Laos also has a cheap labour force and receives trade privileges from more than 40 countries, paving the way for more business opportunities.
vientiane times
