Thakhaek SEZ needs more funds to develop infrastructure
Thakhaek SEZ needs more funds to develop infrastructure
Laos will be better prepared to take advantage of the Asean Economic Community if it is able to complete the basic infrastructure in Thakhaek Specific Economic Zone (SEZ) but significant funding is still required, according to a senior official at the zone.
Development of the zone has progressed well since it was opened in 2012, it was reported, but much in the w ay of infrastructure work still remains to be completed.
So far, there are a total of 21 companies investing in the zone with registered capital of more than US$573 million, the president of Thakhaek SEZ's executive board Mr Daolay Keoduangdy told Vientiane Times recently.
Many companies, mostly from China, America, Singapore, Vietnam, Thailand and Laos are now clearing the land, while some companies have constructed buildings and offices in the zone, especially Zone A, he added.
Thakhek SEZ covers some 1,035 hectares of land and is focused on the development of trade, services and transport but the service area is yet to fully open as yet.
Currently the zone generates revenue mainly from heavy machinery and car imports and will be able to generate more revenue if the construction of the inland container depot on an area of 15 hectares within Zone A reaches completion in February next year and subsequently opens for service.
“Recently we have encouraged d omestic investors to invest in the ICD project, aiming to develop the area as a facility for goods handling and transport, whereas in the past goods handing and transport was scattered along Road No.13 South,” Mr Daolay said.
However the zone still requires an investment budget of more than US$100 million to develop basic infrastructure but the budget depends on companies who have received land approvals so they can raise funds from domestic and foreign investors to move forward with development.
“If we have enough funds to completely develop the infrastructure in the zone, we will be able to gain greater advantage ahead of the coming of the AEC as the Thai side hasn't developed its logistics yet,” Mr Daolay commented.
Thakhaek SEZ is located close to the third Lao-Thai Friendship Bridge linking Khammuan province in central Laos to Nakhon Phanom province in northeastern Thailand.
Local authorities have developed this area through various facilities to encourage the inflow of trade and investment to Laos.
Planned developments for the Thakhaek SEZ include offices, healthcare facilities, a shopping centre, hotel, conference centre, residential buildings and a logistics centre.
The zone is managed in line with the one-stop service system and electronically monitored to ensure transparency and accountability.
