Industrial zone needs more space
Industrial zone needs more space
A major industrial zone, Vientiane Industrial and Trade Area (VITA), hopes to offer an additional 200 hectares of land due to the increasing demand of investors interested in opening business operations there.
“We have raised the issue with the government a year ago and we are now waiting for the answer,” VITA President Mr Sibounheuang Viengheuangphay said on Wednesday.
Currently VITA is located on 110 hectares in Xaythany district of Vientiane; and more than 50 percent of the space has been reserved or booked by the 24 companies for their factories construction in the industrial area.
The VITA President Mr Sibounheuang Viengheuangphay said the existing area of 110 hectares is getting smaller and smaller because of the new investors coming to book space.
The existing companies are also starting to book more space for their factories' area expansion. “Currently each of them the area of about two to four hectares; however some of them now want to have additional space,” Mr Sibounheuang said.
“Currently there are some big companies that want to have more land, but we cannot provide it to them because they want at least about 10 hectares per company,” Mr Sibounheuang said.
Mr Sibounheuang reported early this year that only 30 percent remains available and all the land may be booked by the end of this year.
“There will be another investor from Japan coming to VITA this year. It expects to invest in electronic production and is now in negotiation on agreements and registration,” Mr Sibounheuang said.
Currently the 24 companies are investors from Denmark, Japan, Thailand and China; and they have a total registered capital of 272.92 billion kip (US$34 million).
Some of them produce electric cable and electronic products, which are exported to the Chinese and Japanese markets; and some, are producing uniforms and air and water filters for the German market.
So far there has been an export value of more than 40.72 billion kip (US$5million) coming from the existing two factories' production. This year's export value will show a large increase due to there being two more factories that will begin to export their products in April or May.
VITA, is located 22km from the centre of Vientiane along Road 13 North and was established in 2009. It is jointly operated by the Ministry of Industry and Commerce in collaboration with a private company from Taiwan.
The cost of investment is about 344 billion kip (US$43 million), of which Laos has a 30 percent share and the Taiwanese company a 70 percent share.
It is a 75 year concession on the land and the company can negotiate with the government if it wants to extend the agreement.
Recently they have spent about 48 billion kip (US$6 million) on infrastructure development. Currently it is 90 percent complete with land levelled, a road network laid and water and electricity connected.
vientiane times
