Limited funding obstructs Thakhaek specific economic zone
Limited funding obstructs Thakhaek specific economic zone
Development of the Thakhaek Specific Economic Zone in Khammuan province is progressing slowly due to limited government funding to invest in the necessary infrastructure improvement.
The zone is located close to the third Lao-Thai Friendship Bridge linking Khammuan province in central Laos to Nakhon Phanom province in northeastern Thailand, which is a good location for trading and services with neighbouring countries and further afield in the region.
The zone is still developing slowly compared to other specific zones, which have been invested in by the private sector, Vice President, Mr Nongsavanh Thammavong told Vientiane Times yesterday.
“We planned to spend about US$80 million for infrastructure development in the three phases of operation. Phase I ran from from 2012 to 2015, phase II will run from 2015 to 2018 and phase III from 2018 to 2020,” he said.
For the first phase, the zone received more than 120 billion kip in investment but for this fiscal year 2015-216 at the start of the second phase the government has approved only about 200-300 million kip in funding, Mr Nongsavanh said.
However, more foreign and domestic companies are moving to invest in the zone and different companies are collecting information and studying the conditions and potential for investment, he explained.
A total of 21 Lao and foreign companies have signed agreements and memorandums of understanding to operate investment in the zone, of which five companies are operating towards the construction of the buildings, Mr Nongsavanh reported.
He believed that five more companies will commence construction this year after securing the necessary finance.
Most of the foreign companies are from China, Singapore, Malaysia, Vietnam and Thailand.
The zone was approved by the government in 2012, covering an area of 1,035 hectares to develop for transportation services, warehouses, trading centres, hotels, tourism-related businesses and other services.
The zone has great potential to bring the province in line with neighbouring countries as Laos integrates with the Asean Economic Community.
The zone will also serve as a focal point for attracting foreign investment and tourists to Laos and is significantly boosting the local economy.
Phoukhiew Economic Zone in Khammuan province currently has five companies registered to invest in the zone after it was established at the end of 2010.
The zone has a total area of 4,850 ha, located at the four junctions of two strategic roads, namely Road No.13 South and Road No 12.
The zone can facilitate goods transportation to the sea port in Vietnam which the Lao government has permission to use.
It is the shortest route to the ocean at only 300 km from the Lao - Thai Border to the sea inVietnam, including 150km to the Lao - Vietnamese border and another 150km to the Vietnamese container port.
