Local developer to invest in Khammuan economic zone
Local developer to invest in Khammuan economic zone
A local trade and transport company, Jo Bounmy (Group) Limited, has been given the green light to invest millions of dollars on infrastructure development in the Thakhaek Specific Economic Zone (T-SEZ) in Khammuan province.
The company signed a land concession agreement with the T-SEZ for the 14 hectares last week.
The company will invest more than 40 billion kip (US$5 million) to develop the land as a trade and service area, according to a handout from the company.
The development will include a car park, a warehousing system and goods transportation.
“The company will begin land clearance by the middle of next month,” an official of the zone said yesterday.
The group will own and operate the land for 75 years, from 2015 to 2090. Once the agreement is close to expiry, the developer can extend it for another 15 years, the handout noted.
Based on the regulations of the T-SEZ, the investor will not have to pay a land concession fee for five years, from 2015-2020, the handout noted.
The site of the zone is located close to the Third Lao-Thai Friendship Bridge, Thakhaek – Nakhon Phanom of Thailand, and Road No.12 as a main route to the Voung Anh deep sea port in Vietnam.
It was established in 2012 on an area of 1,035 hectares.
The government of Laos has a policy for economic zones which welcomes all business sectors including domestic and foreign investors.
Some of the policies include the management of a one door service and a one clearance (stamp) policy on the new management of services for industrialisation and modernisation, economic management, independent financial management and identifying the rental fee for land and real estate in the T-SEZ.
The policy for investors in the zone includes a tax rebate on fuel imports, a tax rebate on imported vehicles used for administration purposes and a different tax rebate on the importation of vehicles used for direct production purposes.
Imported raw materials and equipment will come under a separate policy on tax and duty, according to the law.
The Economic Board of the T-SEZ will study policy, management regulations and investment promotion in approving businesses applying for the T-SEZ.
The T-SEZ is subdivided into zones for services, hotels, entertainment, distribution logistics, transportation stations, conferences and meetings, first and second class residences, a sports centre, education and public health facilities, administration and organisation offices, forestry preservation and a green area.
