Local companies to survey industrial development in Champassak
Local companies to survey industrial development in Champassak
Champassak provincial authorities have granted two Lao companies permission to conduct a feasibility study into the development of an industrial park in the province.
Under the memorandum of understanding, Xayxana Group and Savan TVS company will carry out the feasibility study on an area of 625 hectares which straddles the three districts of Bachiangchaleunsouk, Pathoumphon and Phonthong.
The MOU signing ceremony took place in the province last week between representatives from the provincial Department of Planning and Investment and the companies, which was also attended by the Provincial Governor Sonexay Siphandone.
Director of the Provincial Department of Planning and Investment, Mr Saithong Xayavong, told Vientiane Times on Monday that the survey aimed to identify the land area for industrial development as well as what impacts there might be on villagers and the local environment.
“We want to obtain a land area of 625 hectares for the development of an industrial park but it may be less than that figure if the project will cause significant impacts on local people,” he said.
For instance, Mr Saithong said, in Phonthong district 80 percent of the land area to be studied is comprised of local villagers' land plots therefore the compensation for those affected must be accepted by the affected villagers before they are removed to other areas to make way for the development.
However the land slated for industrial park development is located near the main roads in the area, which will make it easier for the business sector to produce more for export.
The survey will take six months to complete and then the provincial authorities will seek developers willing to build necessary facilities including roads, electricity and water supplies required to accommodate industrial enterprises.
Industrial parks or special economic zones (SEZ) are a form of economic development which aims to attract investors from home and abroad by offering tax and duty incentives to promote infrastructure development, services, production, skill development and the transfer of modern technology.
Champassak province is the centre of the southern provinces and is a regional hub which links Laos, Cambodia and Vietnam. Businesses investing in the province can export their products to various seaports in these three countries quite easily.
Currently Champassak province has designated three areas for the development of special economic zones including those in the area nearby Khonephapheng waterfall in Khong district, the Vangtao-Chongmek border checkpoint in Phonthong district; and the Bolaven plateau in Pakxong district. However the government has yet to approve any of these zones.
Champassak provincial authorities are convinced that industrial parks and economic zones will help attract more foreign direct investment to the province, boost development and alleviate poverty in the area by creating more job opportunities for local people.
vientiane times
