Japanese interest grows at Sevan-Seno zone
Japanese interest grows at Sevan-Seno zone
More Japanese investors are interested in investment in Savannakhet province, especially a t the Savan-Seno Special Economic Zone (Savan-Seno SEZ), Social Economic Daily reported yesterday.
Japanese investors and businesspeople, led by Assistant Director of the Asean-Japan Centre's Trade and Investment Division Mr Hirota Nakanishi met recently with provincial Governor Dr Souphan Keomixay.
On that occasion, Dr Souphan reported on circumstances and incentives for investment in the province, in particular investment by Japanese investors at Savan-Seno SEZ, where there are currently eight Japanese companies investing at the zone.
He urged the prospective Japanese investors to invest more especially in the logistics sector which is required to serve the industrial sector.
Dr Souphan stressed that the rel evant authorities need to speed works towards the construction of an airport at Seno in Outhoumphon district, which shall serve primarily as a goods transport hub.
Meanwhile, investors will receive privileges including tax exemption for importing equipment and raw materials for infrastructure construction.
They shall also be entitled to a reduction in income tax and value added tax depending on business type; a one stop service at each zone; and other promotional privileges which were indicated in the relevant laws and regulations.
In addition, conveniences will be extended in regards to electricity, water supply, and access roads, Dr Souphan added.
The authorities intend to ensure an adequate supply of labour to respond to the demands of the manufacturers.
There are 50-60,000 workers i n the province moving to work in neighbouring countries but now the number of those wo rkers has reduced after the authorities announced a policy to attract investment, resulting in an increasing number of manufacturers choosing to relocate their operations to Laos.
Dr Souphan said the establishm ent of a special economic zone in Mukdahan province, Thailand is their right but they still believe in the government's policy to attract foreign investment while the minimum wage adjustment in Laos has depended on the increasing cost of living in the past.
Wages are expected to continue to grow in line with the growth of the economy in the years ahead.
So far , more than 60 companies have registered to operate in the zone, with investment valued at about US$60 million.
So far, the value of goods imported has reached US$35.7 million, while exports have reached over US$11.3 million.
Most of the foreign companies registered in the zone come from Canada, the Netherlands, France, Holland, China, Japan, the Republic of Korea, Hong Kong, Malaysia and Thailand.
The Savan-Seno SEZ is located along Road No. 9 linking Laos to Thailand and Vietnam, making it easier to transport goods produced in the zone to neighbouring countries and further afield.
Special economic zones are designed to attract foreign investment to drive Laos' economic growth and create jobs for local people.
