Chinese investors consider logistics centre investment
Chinese investors consider logistics centre investment
A group of investors from China have arrived in town to take a closer look at Laos' potential for hosting a logistics service centre enabling goods distribution to neighbouring countries.
The mission was led by Vice Executive President of the China Communication and Transport Association, Prof Wang Derong and President of Yuan Cheng Logistics Co., Ltd, Mr Yuan Cheng Huang.
On Wednesday they met Minister of Industry and Commerce, Ms Khemmani Pholsena, to discuss their proposal for establishing a logistics service centre.
Mr Yuan Cheng Huang said the companies must study prevailing conditions in the country including which provinces possessed suitable sites before committing to implementation of the project.
If the project could go ahead it would be beneficial for the country, especially in terms of raising revenue for government and creating job opportunities for local people, he said.
The centre would import goods from China to Laos then distribute them to destinations in other countries such as Vietnam, Thailand and Cambodia.
The proposed centre would be also a place to organise trade fairs, encourage customers from different countries to visit and exchange, order and purchase goods while attracting further investment to the host area.
Currently, goods transportation from China to the countries of the Mekong sub-region remains quite difficult and takes time which could be alleviated by such a centre, said Mr Yuan Cheng Huang.
“This is a big project and will entail a lot of funding to establish, so it will require at least 200 hectares of land and suitable policy before investment can be made,” he said.
“Implementation of the project could make good progress if the Lao government and local authorities provide close cooperation.”
At the occasion, Ms Khemmani expressed thanks to the mission's delegates for their interest in investing in the country.
“This proposal from the Chinese side will be discussed further with the relevant sectors, because it's not always easy to find 200 hectares of land for a project,” she said.
However, according to surveys from some years back there are still several locations in various provinces where land for investment projects could be available, Ms Khemmani said.
So, firstly she advised the Chinese side they should create a feasibility study then the Lao government would be able to offer various options for consideration.
Ms Khemmani said the project was in line with the government policy to move from “landlocked to land-linked”.
She said the Lao government had shown a green light for domestic and foreign investment, particularly those which reduced the costs associated with transportation of freight and facilitation of trade.
