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Laos looks to develop special economic zone strategy
The Lao government is developing a special and specific economic zone strategy as one of its measures to boost investment in the construction of industrial and services infrastructure in Laos.
Members of the National Special Economic Zone Committee met in Vientiane yesterday to study and discuss the proposed draft of the strategy, aiming to make it more concise before presenting it to the government for consideration and approval.
The Consultation Meeting on the Special Economic Zone Strategy was held at the Prime Minister's Office and chaired by Minister of Planning and Investment Dr Sinlavong Khouthphaythoune.
The strategy is very important for the development of special and economic zones as it will serve as a guide and regulatory foundation for the Lao government to attract local and foreign investors to build industrial and services infrastructure.
Successful zone development will not only create new investment opportunities for local and foreign businesspeople but also help the government to create jobs and income for Lao people, according to officials.
The government plans to build at least five special economic zones in Laos over the next five years. Most of them will be located in the former revolutionary stronghold of Huaphan province, as the government believes that will hasten development in rural areas of the country.
To boost investment in the development of the zones, the government has approved a prime ministerial decree on special economic zones. The decree, which the National Assembly has approved, gives the committee the power to offer a number of attractive investment incentives to local and foreign investors who invest in the construction of an economic zone.
The incentives include allowing the zone management board to have an independent fiscal system, permitting it to collect tax from businesses operating in the zone.
At present, there are three special economic zones in Laos; two of them are located in the northern provinces of Luang Namtha and Bokeo, while the final one is in the central province of Savannakhet.
The Asian Development Bank (ADB) is now providing technical assistance to help the committee to draft the zone strategy as part of its effort to improve the capacity of the Lao government to manage the economic zones.
According to ADB Country Director Mr. Chong Chi Nai, the bank considers development of special economic zones as important for the economic growth of Laos.
“Firstly, special economic zones create an environment, in a microcosm, where the conditions for private sector development are conducive, in a setting where at the national level the government may still be struggling to create more generally business-friendly conditions,” he said.
“Also, special economic zones allow for jumpstarting private sector development, skilled labour development and most importantly job creation.”
Mr Nai said that many countries in the region, including Cambodia and China, have successfully developed special economic zones, adding that success is determined by how many investors are attracted, whether business is done in a sustainable way and how those investments help the country's development and improve people's livelihoods.
vientiane times
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