Vientiane Industry and Trade Area needs more land
Vientiane Industry and Trade Area needs more land
The Vientiane Industry and Trade Area (VITA) Park requires an additional 200 hectares to allow for expansion after an increasing number of investors have shown interest in the site.
This expansion plan is under consideration for approval by the government after the VITA park committee put forward proposal documentation in the past, the VITA Park President, Mr Sibounheuang Vienheuangphay told Vientiane Times last week.
The government has already approved 110 hectares for the initial area which is expected to be sufficient for about 60 factories; currently there are 28 companies registered to invest in that area, he said.
Almost 10 foreign companies have invested in building factories, while two companies have already exported products and another two companies are preparing to export at the end of this year, Mr Sibounheuang reported.
Most of the current exports are electronic equipment while the two companies preparing to export are tool and reflective uniform manufacturers.
The value of investment at the site has currently increased to around US$30 million with over 50 percent of the land already booked.
“We now have companies from China, Denmark and Japan signed under contract,” he said.
Mr Sibounheuang explained the capacity of the water and electricity system was able to supply factories in the planned expansion area of 200 hectares and if there is only 110 hectares, these systems would be surplus to demand.
He predicted that as the development potentials of the country are realised the numbers of investors will continue to increase.
The park is one of the major industrial park s in Vientiane and the first specific economic zone to generate substantial revenue to contribute to socio-economic development and help provide job opportunities for Lao workers.
The park's ownership is shared, with 30 percent owned by the Ministry of Industry and Commerce 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 park 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.
Meanwhile Lao citizens will enjoy their first one million kip tax free followed by five percent tax thereafter.
The area is also charging only five percent compa ny bonus tax for companies with two or more shareholders after the period of exemption, a seven percent personal tax for foreigners and an eight percent profits tax after the exemption period.
vientiane times
