Chinese company to invest in Laos for export
Chinese company to invest in Laos for export
Vientiane provincial authorities have granted permission for a Chinese company to invest in a plastics factory to supply goods for local consumption and for export.
The agreement was signed in the province last week between the Chinese company and the provincial Department of Planning and Investment.
Under the agreement, the Chinese company will invest US$32 million to build the factory on a 46- hectare site in Phonkham village, Keo-oudom district.
Director of the provincial Department of Planning and Investment, Mr Soukkan Vilaylak, told Vientiane Times last week the project will help to stimulate economic growth and generate job opportunities for local people.
Officials say the project will require between 2,000 and 3,000 workers, most of whom will be Lao.
With the installed capacity to produce 24,000 tonnes of products a year, the factory will make woven plastic goods including rice bags, aiming to supply 30 percent of its output to local buyers and export the remainder to other Asean countries.
According to the Department of Planning and Investment, the company wi ll spend three months to prepare for the construction of the factory, but the actual construction will take three years.
The company has two woven plastic product factories in Vietnam which are operational, generating more than 4,000 jobs for people there.
The company wants to expand into Laos due to growing demand for plastic products here. One of the most important points to note is that Laos is part of Asean and is centrally located in the region.
Since the Asean Economic Community was established at the end of last year, the 10-nation bloc has become a market of over 600 million people so that entrepreneurs can invest in Laos and export to the whole region.
Every year, Laos imports several thousand tonnes of plastic products from this company in Vietnam so it decided to expand its business here to satisfy the demand in Laos.
Vientiane province is known for its cement factories and hydropower projects, which contribute to socio-economic development and create job opportunities for Lao people. Most of the cement factories are operated by Chinese companies.
Vientiane province is located about 80km from Vientiane and has good road access. Entrepreneurs investing in this province can easily transport their products to the capital and to neighbouring countries.
Officials say several Chinese companies have proposed investments in the province, notably in building factories and growing crops.
Vientiane province is considered an agricultural production zone with most people in the province relying on this sector. However, the province still lacks factories to process agricultural produce for export.
