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Special economic zone proposed for Xieng Khuang
Xieng Khuang province plans to establish a special economic zone in the Kangnongluang area of Paek district, to encourage more domestic and foreign investment as well as attract more visitors to the area.
The proposed zone covers more than 26,000 hectares, and is situated about 10 kilometres from the provincial capital of Phonsavan. The proposal is now under government consideration, provincial Planning and Investment Department Director Dr Maydy Khamphudouangkeo told Vientiane Times yesterday.
“We want to encourage domestic and foreign companies and also the government to invest in many areas of development, and employ new technologies to develop modern industries here,” Dr Maydy said. The province has an abundance of natural resources and should build factories to process products for sale and export, he added.
Livestock breeding is one of the major agricultural pursuits in the province, which currently exports an average of 10,000 cattle and buffalo to Vietnam every year.
“We should build a modern slaughterhouse and kill our own livestock in order to maximise the amount of profit that stays in the local community,” Dr Maydy said.
The province is also cooperating with Korean investors who plan to set up a treatment centre for the elderly and also a modern hospital in the area, he said. This development will help to boost economic growth and create jobs for local people, he added, which will provide them with extra income and improve their living conditions.
The province will host the National Games in 2017, and provincial authorities plan to cooperate with the government to build a football stadium in the area which is being proposed as a special economic zone.
“Some people have said the government should declare the area as a new district development project rath er than a special development zone. But if we give it this name we would find it difficult to encourage investors to set up businesses,” he said.
New district development project policies are quite different from those of special economic zones, in terms of incentives for investors, he explained. In line with the province's investment policy, provincial authorities will offer special incentives to attract investors, Dr Maydy said.
Currently there are three special economic zones, namely Dok Ngoui Kham in Bokeo province, Boten in Luang Namtha province, and Lao Bao and Savanh-Seno in Savannakhet province.
These three localities all have the same status in terms of special economic zones. However, one difference is that in Dok Ngoui Kham and Boten all the profits belong to the developers, which are private enterprises, while the developments in Savanakhet province are managed by the government which receives revenue as the developer.
vientiane times
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