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Dongphosy project rezoned to attract investors
The Vientiane Long Thanh Golf project in the Dongphosy area of Hadxaifong district has now been classified as a specific economic zone, in hopes of attracting more foreign investment into the project.
The Lao government and the Vietnamese-owned Vientiane Long Thanh Golf and Real Estate Co., Ltd. reached an agreement on Saturday to change the project from a normal investment concession into a specific economic zone.
The main reason for the change in classification is to make it easier for entrepreneurs to do business in the zone, by cutting down on the red tape involved. Now developers simply need to register at the zone and will also benefit from a number of incentives and tax breaks.
Under the concession agreement, businesses have to apply for a licence from various government agencies and are not eligible for the same tax breaks.
The Vientiane Long Thanh Golf project is a US$1 billion development located near the Lao-Thai Friendship Bridge and covers an area of more than 550 hectares. The project will include a golf course, luxury villas, commercial buildings and five-star hotels.
So far nine holes of the golf course have been built, with more under development, along with other features of the project.
Minister of Planning and Investment Somdy Duangdy and Vice Mayor of Vientiane Dr Anouphab Tounalom represented the government in signing the agreement with the Vietnamese company to change the project classification.
The signing was attended by other high-ranking officials including Lao Deputy Prime Minister Somsavat Lengsavad and his Vietnamese counterpart Nguyen Xuan Phuc.
The agreement was reached during the 34th meeting of the joint cooperation commission between Laos and Vietnam held in Vientiane on Saturday, when leaders of the two countries reviewed their past cooperation and discussed future plans.
Vietnam is a major trading partner of Laos and also a major investor in this country. The two countries enjoy good relations, strong friendship and comprehensive cooperation for the benefit of the citizens of both countries.
The government is doing all it can to lift its people out of poverty and shed Laos' least developed country status.
The government believes the development of special and specific economic zones (SEZ) will bring in more foreign investment to Laos through tax breaks and import duty exemptions, and develop infrastructure in specific areas.
The government also believes that increasing investment in special economic zones will create jobs, a major factor in helping Lao people to rise above poverty.
Laos has endorsed six SEZ, including Savan-Seno, Boten Dankham, Golden Triangle and Phoukhyo.
At least 40 such zones are planned, with 25 expected to be built by 2020.
vientiane times
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