Lao industrial zone hopes export value will rise

Lao industrial zone hopes export value will rise

A major Vientiane industrial zone, Vientiane Industrial and Trade Area (VITA), expects 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, located on 110 hectares in Xaythany district of Vientiane, reported yesterday that so far it has an export value of more than 40.72 billion kip (US$5million) coming from the existing two factories' production.

These two factories are the investment of Japanese and Chinese companies.

The VITA President Mr Sibounheuang Viengheuangphay said the products, including electric cable and electronic products, are exported to the Chinese and Japanese markets.

“The two new factories, which will start to export in April or May, are producing uniforms and air and water filters for the German market,” Mr Sibounheuang said.

The two new exporters are investments from companies in Denmark and China.

Now VITA has 24 companies that have booked space for their factories in the industrial area, including foreign investors from Denmark, Japan, Thailand and China.

The 24 companies, which have a total registered capital of 272.92 billion kip (US$34 million), have already taken up 40 to 50 hectares.

“There will be another investor from Japan coming to VITA this year. It expects to invest on electronic production and is now under negotiation on agreements and registration,” Mr Sibounheuang said.

The current 24 companies include eight factories that have completed construction and another two that are still under construction but will finish soon.

Mr Sibounheuang said there will be another five new factories starting construction by investors from Thailand and China. They expect to produce agricultural equipment and construction materials.

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.

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