Legislation seeks to smooth way for progress in Special Economic Zones
Legislation seeks to smooth way for progress in Special Economic Zones
Tax breaks, one-stop services and extended-length visas for investors are being considered in draft legislation on Special Economic Zones. The draft law is being prepared and will be submitted to the government next month for consideration and endorsement before progressing to the National Assembly session for debate and assent in June or July.
The draft law will also consider how to facilitate real estate business in the zones.
O fficials are optimistic that if passed, the law related to special and specific economic zones (SEZs) will help draw increasing numbers of foreign investors to Laos.
Deputy Director of General Secretariat of the Lao National Committee for Special Economic Zones, Mr Phouvieng Ngaophasy, told Vientiane Times on Wednesday that the new law aimed to promote and facilitate greater investment in SEZs across Laos.
The content of the draft law has been in consideration since 2012 and had benefited from inputs from relevant sectors in both Vientiane and provinces through a series of consultation meetings.
The content of the draft law was outlined at a nationwide SEZ symposium in Vientiane earlier this month chaired by Deputy Prime Minister in charge of economic affairs, specifically production and goods circulation, Mr Somsavat Lengsavad.
The meeting was also attended by ministers, provincial governors and other high-ranking officials as well as representatives from all 10 SEZs in Laos.
The meeting aimed to outline details and reaffirm the understanding that specific and special economic zones are possible not only in coastal nations, but also in landlocked countries such as Laos.
The role of special economic zones is to promote infrastructure development, services, production, skill development and the transfer of modern technology.
They are established in specific locations, offering tax and duty incentives to businesses which base themselves there with the aim of increasing employment and boosting the local economy in surrounding areas.
Vice President of the Lao National Committee for Special Economic Zones, Ms Bounpheng Mounphosay, said that while the zones could well be achieved in landlocked countries, they did need to have good policy, political security, manpower and good management and transparent legal system in order to attract investors.
Laos currently has 10 SEZs, of which two are special economic zones and eight are specific economic zones.
More than US$1 billion has already been spent on developments at the zones carried out by 158 companies from around the world.
The 10 SEZs cover a combined area of more than 13,500 hectares and have generated more than 10,000 jobs, contributing to the sustained growth of the national economy.
The draft law comprises over 160 articles, and defines principles, procedures and mechanisms related to the establishment and role of the zones when it comes to attracting investment to Laos.
