Vientiane Industry and Trade Area pays dividend
Vientiane Industry and Trade Area pays dividend
The Vientiane Industry and Trade Area (VITA) has already produced a dividend payout of US$75,000 plus paying 180 million kip in labour tax to the government after having exported US$5.9 million in product.
While doing this they also imported goods to the value of almost US$12 million, VITA President Mr Sibounheuang Vienheuangphay told Vientiane Times during a visit to the area last week.
The area is shared 30 percent by the Ministry of Commerce and Industry and 70 percent by Nam Wei Development Co. Ltd, he said.
Nam Wei's job is to encourage businesses to invest there while the government issues policy and regulations.
The area is offering some very attractive features for investors, such as a duty-free zone for all import and export duties, zero consumption tax, zero profits tax for up to the first 10 profitable years and Lao citizens will enjoy their first one million kip tax free followed by five percent thereafter.
The area is also seeking only five percent company bonus tax for companies with two or more shareholders after the period of exemption, only a seven percent personal tax for foreigners and an eight percent profits tax after the exemption period.
Mr Sibounheuang said the area offers investors 75-year land leases at prices between US$28 and US$35 per square metre.
At present, 11 foreign companies have invested in building factories in the area while 26 other companies have made a commitment to locate their production base there.
Only two factories are currently operational and only one has exported electronic equipment, he said.
“The government has approved 110 hectares for the initial area which is expected to be sufficient for about 60 factories but we are asking for 200 more hectares to allow for expansion,” he added.
The area is one of the major industrial parks in Vientiane and the first specific zone will bring good revenue to contribute to socio-economic development and help to provide job opportunities for Lao workers.
The area developers have invested US$8 million in the construction of roads, water and power supplies and are hoping that all facilities in the zone will be completed by the end of 2015, Mr Sibounheuang added.
vientiane times
