Savan Park Zone C set to recruit more FDI

Date: 04, Jan, 2018   Time: 9:12 am
Many Lao and foreign-owned companies are already operating in Savan Park (Zone C) including the government-owned ‘dry port’ which is managed by the Savan Logistics Company Limited.

Many Lao and foreign-owned companies are already operating in Savan Park (Zone C)
including the government-owned ‘dry port’ which is managed by the Savan Logistics
Company Limited.

The Savan-Seno Special Economic Zone, especially its Zone C, in Savannakhet province, is set to be part of government foreign direct investment (FDI) efforts by attracting 20 companies to the zone which now houses more than 50 registered and operational firms.

Commonly known in short as ‘Savan Park’ (Zone C), the facility now houses 55 registered and operating companies, according to data recorded in May last year.

However, t h e government is planning to entice at least an additional 20 companies to the SEZ with the aim of creating 3,000 jobs, along with tax revenues of US$750,000 from exports and imports.

Zone C alone covers 234 hectares and is designated as a commercial and industrial hub with an increasing number of investors from various countries in Asia and Europe, according to a recent report by the company in charge of the zone.

General Manager of the Savan Pacifica Stream Development Company Limited, Mr Tee Chee Seng, who is responsible for Savan Park (Zone C), told Vientiane Times the zone was fully capable of attracting more investors this year.

“I’m confident that our zone will recruit more foreign direct investment because the zone has all the necessary infrastructure and utilities in place,” he said.

The logistics system at the zone connects the East- West Economic Corridor (EWEC) with China’s One Belt, One Road initiative, aiming to transform Laos from a landlocked to a land linked country.

Registered and operational companies are currently manufacturing automotive, aerospace and machinery parts as well as electronic and electrical appliances.

Savan Park is zoned as a free trade industrial and commercial centre under Prime Minister’s Decree 148. Investors who set up a base in this zone enjoy the lucrative benefits of privileges as detailed in Prime Minister’s Decree 177.

According to the  Ministry of Planning and Investment, the government is targeting a total of 140 companies to invest in the 12 Specific and Special Economic Zones (SEZs) in Laos this year by facilitating investment with policies and incentives to make sure the business environment is attractive to domestic and foreign investors.

So far, 350 Lao and overseas companies have invested in these zones with total registered capital of US$8 billion, of which US$1.6 billion has been spent, and 14,699 jobs have been created including 7,564 positions for Lao nationals, a recent update revealed.

 

Source: Vientiane Times Issue 03 (4 January 2018)