Dansavan resort seeks SEZ classification
Dansavan resort seeks SEZ classification
Developers have issued a proposal to the government to convert the Dansavan resort complex north of Vientiane into a specific economic zone (SEZ) in order to facilitate development and attract more investment.
The proposal centres on the entirety of the resort and entertainment complex, which stretches over an area of land in the Phou Khao Khuay area and the Nam Ngum reservoir in Vientiane province.
Officials from the Lao National Committee for Special Economic Zones (NCSEZ), Vientiane province, and Lao-Syuen Development Co., Ltd. met in Vientiane yesterday to discuss the feasibility study and master plan for converting the Dansavan resort complex into an SEZ.
The meeting was co-chaired by Deputy Minister and Vice President and Head of the NCSEZ Secretariat, Ms Bouatha Khattiya, and Vientiane provincial Deputy Governor Ms Singkham Khongsavanh.
Lao-Syuen Development Co., Ltd. first asked Vientiane authorities to consider converting the Dansavan resort complex to a specific economic zone last month.
The resort was developed in 1996 and the government initially gave a land concession of 14,800 hectares to Syuen Cooperation Co., Ltd. of Malaysia to build a tourist complex.
The company held 75 percent of the shares and the government held 25 percent of the shares at that point in time.
Over the past 10 years the company has built basic infrastructure, hotels, a casino and a golf course, Ms Bouatha said.
She explained that this area was able to attract domestic and foreign tourists but business operations still faced difficulties and the company couldn't achieve their targets according to the contract.
As a result, in 2014 the government gave Lao-Syuen Development Co., Ltd. permission to continue investment and development of the area as a natural tourism and entertainment centre, attracting people from Laos and throughout the region.
The company received a new land concession of 3,000 hectares and a concession period of 70 years, according to the second amendment to the contract issued on April 2, 2014.
Although the project area is suitable for development as a tourist site, it is a huge investment project.
“If we will develop it as a concession investment project under the general policy we will have to spend many years in development and we will also face obstacles in attracting investors and raising funds from other sources.”
“T his is because we will be unable to operate the business independently and investors will consequently lack confidence about investing in this area, said Company President Mr Yu Wang Yun.
To enable development of the project to progress with speed and openness and attract more investment, the area needs to be converted into an SEZ so that it can provide a single door service and benefit from special policies from the government, he added.
Therefore, the company has issued the proposal for consideration by the provincial authorities and the NCSEZ. Investment value in this zone is expected to increase in the future, he said.
Mr Yu Wang Yun said that if a specific economic zone were created it would be able to provide about 5,000 jobs in the future while the complex employs only about 1,000 people at present.
It will also provide a stable income source for Vientiane province as well as contribute to the national budget and also prepare for trade and service integration with Asean member countries and other nations further afield.
