Laos, China agree to Boten-Bohan economic cooperation zone
Laos, China agree to Boten-Bohan economic cooperation zone
Laos and China have signed a cooperation agreement to establish an economic cooperation zone in the Boten-Bohan border area, aiming to boost trade, investment and tourism in the region.
The agreement was signed in China this week between Deputy Prime Minister in charge of economic affairs, Mr Somsavat Lengsavad and Chinese Minister of Commerce Mr Gao Hucheng
It was witnessed by the visiting President Choummaly Sayasone, Chinese President Xi Jinping and other high-ranking officials.
This is the second cross-border economic cooperation zone that China has established with its neighbours, which should serve as a significant driver for eco nomic cooperation in the region.
Boten is located in Luang Namtha province in northern Laos which is accessibly by Road No. R3 while Bohan is in Yunnan province of China.
The governments of Laos and China agreed to push for mutual support and explore poten tials for economic cooperation notably the cooperation in industrial development between Laos and China.
In July last year in China, Deputy M inister and Vice President of the Lao National Committee for Special Economic Zones (NCSEZ), Ms Bouatha Khattiya signed a memorandum of understanding (MOU) with Vice Minister of Commerce of China Gao Yan to upgrade the Boten-Bohan cross-border area into an economic cooperation zone.
The MOU allowed the two sides to work together to improve the investment climate, improve cooperation mechanisms and push for development in the area while ensuring security along the border to facilitate border crossing activities, trade, investment and tourism.
China has also granted technical assistance to Laos as well as human resource development and training and assisted with investment-related issues to ensure that both countries can work together to attract investors from around the world to the economic cooperation zone.
Boten is currently designated as a specific economic zone, developed by Chinese companies - Yunnan Hai Cheng Industrial Group Stock Co., Ltd and Hong Kong Fuk Hing Travel Entertainment Group Ltd.
The US$500m project covers a total area of 1,640 hectares with a concession period of 99 years.
The Chinese developers have announced that they will focus on four mega projects in the zone including a duty free centre, bus station complex, warehousing and a resort that shall feature a large natural marsh, h otel, meeting hall and other relaxing places.
As of March this year, about US$10 million has been spent on the Specific Economic Zone under the new Chinese developer.
Vice president of the zone's management board Mr Vonekham Phetthavong told Vientiane Times recently that infrastructure development activities are currently underway to attract more investors to the zone.
“We will start construction of six buildings at the end of this month. Each building will be as tall as 20 floors. We are also building roads and installing streetlights in the zone. Other activities include the development of tourism sites, soil leveling and other facilities,” Mr Vonekham said.
