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Transport equipment to be produced in Laos
Laos' Kharoongroj Group and Thailand's Panus Assembly Company will cooperate to invest in the production of transport equipment and facilities in Laos in the near future.
The two companies signed a memorandum of understanding at a ceremony on Friday in Vientiane.
“It will be the first time quality transport equipment and facilities will be produced in Laos,” Panus CEO Mr. Panus Watanachai said at the signing ceremony.
However Mr. Panus said he does not know exactly how much the company will invest in the project or when it will start as decision-makers are awaiting the results of a study, which will provide information about taxes, among other details.
Kharoongroj Group Coordinator Mr. Vilasith Sundara said, “We expect business operations may start by the middle of this year.”
The joint-venture project will feature an assembly and production plant. “However we do not know how many shares each company will hold,” Mr. Vilasith said.
Mr. Panus said, “We believe in the potential for investment in Laos because the country will be central to transportation in Southeast Asia.”
“I also note that Lao economic development continues to grow steadily.”
Lao investment regulations and laws have been altered to facilitate more favourable conditions for local and foreign investors. “This attracted us to expand production into Laos,” Mr. Panus explained.
Minister to the Royal Thai Ambassador to Laos Mr. Udomsak Sritangos said cooperation between the two companies will ensure good business operations in the future, which will boost growth in trade and investment between Laos and Thailand.
Mr. Udomsak said Thailand sees Laos as an important country for trade and investment.
Laos currently offers road and rive transportation, and in the next five years will boast a train transport system, which will provide an important link between countries in the region. Growing economic cooperation and integration in the region has facilitated increased trade and investment in Laos. With this integration, the competition for trade and services has also expanded, pushing businesspeople to improve their operations.
Mr. Vilasith said, “Business cooperation and competition throughout all sectors will help further boost economic growth.”
Director General of the Ministry of Public Works and Transport's Transport Department Mr. Viengsavath Siphandone said transportation in Laos is mostly dependant on the growing road network, which is central to socio-economic development.
“Higher quality transportation networks and modern transport equipment and facilities will ensure goods are delivered on time and safely,” he said.
Mr. Viengsavath added a quality logistics system will help goods delivery become even more efficient.
Mr. Panus said the project will reduce production costs and increase competition among transport service operators, producers and suppliers, which will be healthy for Laos.
vientiane times
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