Laos-Japan economic zone to benefit local community
Laos-Japan economic zone to benefit local community
The new specific economic zone (SEZ) being developed through cooperation between Laos and Japan should bring economic and other benefits to the government, local administrations and people by being a model on transparency of investment.
Relevant officials made the comments about the project recently on the sidelines of the official establishment of the company responsible for the Pakxe-Japan SME Specific Economic Zone development.
President of Champassak province Special Economic Zone (CSEZ) Mr Khamphon Nuansengsy said the establishment of the Pakxe-Japan SEZ i s in compliance with the province's development strategy and should serve the needs of poverty reduction.
“It is very important that the project will help in terms of creating jobs for local people,” he said.
The government approved the establishment of the Pakxe-Japan SME Specific Economic Zone in Champassak province in August and the establishm ent of Pakxe-Japan SME SEZ Development Co., Ltd this month.
This will set in motion the development of some 195 ha land in the province's Pathoumphon and Bachiengchaleunsouk districts.
Eight Japanese and Lao-Japanese companies have registered for operation in the SEZ with combined registration fees of about US$5 million, and have already created 690 jobs for Lao citizens.
Mr Khamphon also commented about the flow of local young people seeking jobs in a neighbouring country, saying many of them would return to work in their hometown as the investors in the SEZ woul d provide better welfare than others.
“I am confident that the clear policy regarding social welfare for workers will be attractive for job seekers,” he said.
He also noted the specific characteristics of the project, which he said would ensure transparency through clear methods of distribution of revenue from the project.
The rules of the zone will see 50 percent of revenue go to the state budget, 20 percent to the provincial authorities, 15 percent to the districts where the zone is located, 10 percent to CSEZ administrative expenses, and the rest to an environmental fund.
He spoke about Ja panese companies as reliable partners who have good credit and Japanese people as being very disciplined, which he said would accompany the project's success.
The CSEZ president also spoke about rules of the zone development, which he said would not impact local residents who have the ownership of the land the project covers as th ey will receive appropriate compensation.
The land owners can also become shareholders of the project by handing their land to the development, and participate in the project as employees and workers, according to Mr Khamphon.
The SEZ will allow local people to use their land until the development is ready, while SEZ administration is looking for land nearby the project to compensate them.
