Lao SEZs aiming for increase in investors, employees
Lao SEZs aiming for increase in investors, employees
Laos’ Special and Specific Economic Zone (SEZ) Promotion and Management Office and domestic SEZ authorities are gearing up to promote operations in various zones across the nation.This year, the office will attract at least 163 firms with high quality investment capacity and encourage registered companies to implement their operational agreements.
Last year, 202 companies registered with the office, with 193 being foreign operators along with five joint ventures and four Lao firms.
These companies have combined registered capital of over $629.67 million and investment capital of over $1.4 billion.
There are 12 special and specific economic zones nationally, with a total of 806 companies investing in the zones.
Speaking at the annual meeting for SEZ development and management in Vientiane recently, SEZ Promotion and Management Office head Champa Khamsouksay said the overall goals set by the government needed to be prioritised.
“The plan includes encouraging developers and investors to implement their investment plan to bring $477.52 million into the zones,” he said.
In addition, job recruitment will see about 21,288 people hired with a focus on local employees this year.
This year, revenue collection for the government is targeted at 151.46 billion kip ($17 million) while imports of raw materials, goods and construction equipment into SEZs will be $719.42 million and goods exported from SEZs will be worth $426.71 million, according to the plan.
Next year, the SEZ office and other SEZ authorities will invite about 140 companies with more than $655.71 million to the zones and push developers and investors to become fully operational.
Next year, revenue contributions to the government are expected to reach 119 billion kip, and 16,000 jobs will be generated, while imports through the zones should be worth about $43.93 million and exports $427.63 million.
Last year, the value of exports from SEZs reached $394.4 million while imports hit $1,101.5 billion.
Exported items include electronic parts, automobile components and other products, while imported goods include machinery, raw materials and construction equipment for infrastructure development in the zones.
With a new focus on the development and expansion of new special and special economic zones, the SEZ office is expected to take advantage of China’s Belt and Road Initiative and the Laos-China railway to attract more investment projects to the zones.
