Savan-Seno SEZ still attracting investors
Savan-Seno SEZ still attracting investors
The Savan-Seno Special Economic Zone (Savan Seno SEZ) in Laos' central province of Savannakhet is still attracting considerable interest from foreign investors.
While many overseas companies have visited the site and explored the investment situation, some are reluctant to set up business there due to concerns about value-added tax (VAT) and an adequate supply of labour.
A total of 52 companies with an investment value of US$66.8 million have registered to invest in the zone, according to the zone's Investment Promotion and Legal Affairs Division.
Most of the companies are from Laos, China, France, Thailand, the Netherlands, Malaysia and Japan, a division official, Mr Daravisone Phommavongsa, told Vientiane Times yesterday.
Seven companies are already producing goods for export - three from Japan and one each from France, the Netherlands, Thailand and Malaysia – and have created over 2,000 job opportunities for Lao people.
Last year, the value of products exported from the zone reached about US$78 million, bringing in a able amount of revenue for the government.
Potential investors from Japan, France, China and Thailand have visited the zone to collect information about possible business operations there, Mr Daravisone said.
The only concerns they have centre on VAT and an adequate supply of workers, he added.
For example, the Nikon Company of Japan requires about 2,000 workers to assemble camera parts but so far only about 1,000 people have applied for work.
This problem not only affects the Savan-Seno SEZ but is a stumbling block for many other businesses and projects in Laos.
Provincial authorities are urging Lao people to take these jobs to discourage them from crossing the border to work in Thailand illegally.
The government has formulated special policies to attract investors to the zone, which covers more than 900 hectares of land, with further room for expansion along the arterial Road No. 9.
Some areas of the 900 ha site have not yet been allocated and are still available for use by investors, Mr Daravisone said.
Savannakhet province has become a major transit route linking Vietnam to Thailand and other countries in the region through Road No. 9 and the Second Lao-Thai Friendship Bridge.
Entrepreneurs investing in the zone can easily export their products through seaports in Vietnam and Thailand.
Laos benefits from trade privileges offered by more than 40 countries, meaning investors operating in the zone can benefit from low taxes on exports.
