VITA Park attracting growing number of investors
VITA Park attracting growing number of investors
Vientiane Industry and Trade Area (VITA Park) has seen a growing number of companies investing in the area after improvements in basic infrastructure, according to a top official at the park.
“So far, we have finished almost 90 percent of basic infrastructure, including a concrete road, offices, dormitory for staff and workers, lighting s ystem, drainage, waste and refuse treatment system, water supply system, parking lot and electricity substation,” VITA Park Chairman Mr Sibounheuang Vienheuangphay recently told Vientiane Times .
“The road from Road No. 13 South to the park is also nearly complete and we have improved the one-stop-service at the park which will make it easier for investors,” he added.
This road through Huaxieng village will not only link with industrial parks but also boost other socio-economic development near the capit al.
Mr Sibounheuang stated that VITA Park had seen a growing number of companies invest in the area over recent years with 34 currently registered for investment in the park. Foreign investors were mainly from China, Japan, Thailand, Denmark, Chinese Taipei (Taiwan), Hong Kong and Malaysia.
Within the 34 companies, five factories have already produced and exported their products and four factories are currently experimenting with their manufacturing and production, while other companies are building their offices and factories.
Besides these, some companies were preparing to register for business licences to process products for export, he said. Mr Sibounheuang said the industrial sector accounted for 46 percent of businesses operating, the commercial sector 29 percent and the service sector 25 percent.
So far, the value of goods imported has reached US$30.5 million, while exports have reached over US$11 million.
By the end of this year about 20 companies would have started their manufacturing and production along with employment for 2,000-2,500 people, he expected.
Mr Sibounheuang said the developers had asked the government to ensure a stable electricity supply of 15 MW to VITA Park by March this year. They have also asked the relevant sector to solve problems regarding delays in issuing import and export documentation.
The park also requires an additional 200 hectares for expansion with the plan under consideration for approval by the government.
“We have been installing water and electricity systems to enable the supply of factories in the planned expansion area of 200 hectares and these systems would be surplus to demand, if there is only 110 hectares,” he explained.
VITA Park commenced operations at the end of 2009 and was officially declared open in August last year.
The project site currently covers an area of 110 hectares and is located 22km from the centre of Vientiane along Road No. 13 South in Xaythany district.
Investment is valued at some US$43 million, of which Laos has a 30 percent share and the Taiwanese company a 70 percent share.
