Laos-Japan economic zone company established
Laos-Japan economic zone company established
A Lao-Japanese company has been officially established to facilitate the development of businesses from the two countries in a new special economic zone (SEZ) in Champassak province.
The newly established Pakxe-Japan SME SEZ Development Co., Ltd. is a joint venture between Champassak Province Special Economic Zone, Xaysana Group, Savan TVS Consultant Co., Ltd. and the Japanese Nishimatsu Construction Co., Ltd.
They will facilitate direct investment from Japanese companies and enterprises and establish and operate production facilities, businesses and services for domestic supply and export on an area of 195 hectares taking in parts of Pathoumphone and Bachieng Chaleunsouk districts.
Champassak Province Special Economic Zone President Mr Khamphonh Nuansengsy; Xaysana Group representative Mr Xaysana Vissathep; Savan TVS Consultant Co., Ltd. representative Mr Vannada Phommasthit; and Nishimatsu Construction Co., Ltd. Director, Managing Officer and General Manager, International Division Mr Akira Matsumoto joined in signing the company establishment document on Saturday.
“The objective of our project first of all is creating jobs in Laos, especially for young graduates in the province, so they won't go seeking jobs in neighbouring countries where they could face several risks,” Mr Vannada said.
Development of Champassak province into a green industrial province was also an objective of the joint effort he said and in general businesses would be small and medium d enterprises, which won't pollute the environment or adversely impact on livelihoods.
Eight Japanese and Lao-Japanese companies have registered for operation in the SEZ with combined registration fees of about US$5 million. Some of them have begun operations and are manufacturing wigs, leather bags, phone spare parts, Japanese national costumes, car spare parts, automotive electrical wiring, and growing vegetables, flowers and mushrooms. In total they have created 690 jobs for Lao citizens.
Japan tops the list of foreign countries providing Official Development Assistance (ODA) to Laos, offering about US$100 million annually, while investment by the Japanese private sector in Laos is increasing.
In his remarks at the signing ceremony, Champassak province Governor Dr Bounthong Divixay said he appreciated the establishment of Pakxe-Japan SME SEZ Development Co., Ltd., which he said would not only attract foreign investment but was an opportunity for Lao businesses to learn about technical expertise from the Japanese Nishimatsu Construction Co., Ltd., which was established in 1874.
Speaking at the ceremony, Lao National Committee for Special Economic Zone Secretary General Ms Buatha Khattiya said the SEZ was a new stage in creating the ‘Made in Laos' brand for export thanks to local land administration that would build trust among investors.
As of today, there are 11 SEZs in Laos, including the Pakxe-Japan SME SEZ. The zones cover 14,000 hectares and have created 15,000 jobs for the country's citizens.
