Strength to strength in Savannakhet industrial zone
Strength to strength in Savannakhet industrial zone
Investment by local and foreign business alike continues to increase in Savannakhet Province's Savan-Seno Special Economic Zone.
The zone has progressed strongly since 2007 when it welcomed its first investor.
Officials confirmed investments of more than 1.77 trillion kip (US$221.78 million) had been made in the zone which boast registered capital of over 531 billion kip (US$66.37 million).
Another official of the zone, Mr Phanomkone Dararasmy, said in May that there had been a total investment of about 1.293 trillion kip (US$161.7 million) in the zone with a registered capital of about 341.6 billion kip (US$42.7 million).
“The zone had an investment value of about 24 billion kip (US$3 million) with a registered capital of 5.6 billion kip (US$700,000) in 2007,” the report noted.
The US$221.78 million includes investments from Thailand, Malaysia, Laos, France, Japan, China, England, Holland and Australia.
“The investors have established 53 enterprises in the zone and built factories as well as service offices,” Mr Phanomkone said.
The figure is an increase from 37 in May.
Nine Thai companies boast the largest investment value in the zone with a total value of about 462.64 billion kip (US$57.83 million).
Investment by six Malaysian companies and 15 Lao companies are valued at more than 425.37 billion kip (US$53.17 million) and 363.6 billion kip (US$45.45 million) respectively.
Also notable are five French companies worth about 233.6 billion kip (US$29.2 million), 10 Japanese co mpanies worth around 184.64 billion kip (US$23.08 million) and three Chinese companies worth US$9.15 million.
Investment by an English company is valued at US$2 million, two Netherlands companies at US$1.5 million and two Australian companies at US$400,000.
The 53 enterprises are working in a wide range of areas including transportation, vehicles and heavy machines for lease, paint production, fuel supply, warehouse and logistic services, engineering, advertising, vehic le and spare parts import-export, tourism, industrial machines and electronics, concrete, electric cable, maintenance and security services.
Services on offer include legal consultancy, infrastructure development, labour training, garment manufacture, trade consultancy, internet service provision, tin smelting and refining, construction, production of plastics, textiles, cosmetic and paper and motorcycle assembly.
So far the zone has seen total export value of more than 629.18 billion kip (US$78.64 million), the report noted.
Products have been exported to both Asian and European markets.
Laos is boosting the production of goods for export to take advantage of the Generalised System of Preferences, which cuts tariffs on goods exported to more than 40 developed countries.
Mr Phanomkone said further foreign companies were expected to flock to the zone, particularly in the services and processing industries.
Currently the zone is busy developing infrastructure and expects to have it fully completed in the lead up to 2020, he said.
vientiane times
