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Economic zones seen as future engines of development
The government is optimistic that the development of special and specific economic zones (SEZ) will contribute to economic growth and create jobs for local people.
The General Secretariat to the National Committee for Special Economic Zones (NCSEZ) held a media conference in Vientiane yesterday to explain the progress made in developing SEZ and how they will contribute to the development of Laos.
Head of the General Secretariat to the NCSEZ Ms Bouatha Khattiya briefed the media on the government's intention to ensure that SEZ benefit local people and will enable Laos to move off the list of least developed countries by 2020.
Special and specific economic zone developments attract both domestic and foreign investors by offering tax and duty incentives in order to promote infrastructure development in specified locations. The zones will include service sector businesses and production facilities and will develop workers' job skills through the use of modern technology.
Ms Bouatha said that since the establishment of the SEZ, new roads have been built in rural areas and businesses have begun employing local people.
The government has plans to build over 40 special and specific economic zones to attract foreign investment and boost development in rural areas.
Of that total, 25 zones will be built by 2020, creating about 50,000 jobs. Local farmers can also benefit by growing crops to supply those living in and around these zones, which will boost their incomes.
So far the government has endorsed six SEZ including the Savan-Seno, Boten Dankham, Golden Triangle and Phoukhyo.
The government is considering establishing another five zones in Vientiane and the provinces of Khammuan and Savannakhet, and about 13 proposals are currently undergoing feasibility studies.
In addition, a one-stop service is available at the zones to help businesses obtain a licence within a shorter period of time.
Laos is strategically located, sharing borders with five countries - China, Thailand, Vietnam, Myanmar and Cambodia.
Laos is also transforming itself from a land-locked to a land-linked nation by building roads and other infrastructure to link the region. The government believes SEZ developments will help the country to maintain annual economic growth of 8 percent until 2015.
The Savan-Seno SEZ is located along the East West Economic Corridor. Entrepreneurs investing in the zone will export goods to Japan, Republic of Korea, Singapore and other nations through Road No. 9.
Laos receives trade privileges from more than 40 countries so entrepreneurs investing in these zones can benefit from low taxes on exports.
vientiane times
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