The Savannakhet Special Economic Zone C – Savan Park and Savannakhet Dry Port have been attracting more and more investors and a total of 193 companies are currently registered, while the value of investment has risen to over US$584 million.
The figures were reported during a visit by Vice President Dr Bounthong Chitmany and his delegation to the site on November 9.
The group was warmly welcomed by the Governor of Savannakhet, Mr Santiphap Phomvihane; the Chief Executive Director of the SEZ, Mr Phanomkone Dararasmy; and other officials.
Of the registered companies, 74 are involved in industry, 17 in commerce, and 102 in the service sector.
Foreign companies contribute 56 percent of the investment value, Lao companies contribute 28 percent, and the remaining 16 percent comes from joint foreign and domestic companies.
The purpose of the site visit on Wednesday was to hear about the development of Savan Park and Savannakhet Dry Port, which are ideally located in a strategic position close to Thailand and Vietnam, with a logistics system that is linked to the region and the rest of the world, bolstered by the Laos-China Railway.
During the site visit by high-ranking officials, led by Dr Bounthong Chitmany, Mr Phanomkone Dararasmy, highlighted the overall development of Savan Park and the Savannakhet Dry Port.
The delegation toured the operations of several companies including a Japanese-owned company named Misuzu Laos, which manufactures cables and electricity transmission lines.
He informed the guests that the value of imports and exports through the site reached US$9.5 billionin 2021, while the value of imports and exports from January to October this year hit nearly US$4.7 billion.
From January to September this year, Savannakhet SEZ paid over 28 billion kip in taxes.
Mr Phanomkone Dararasmy said Savan Park was more developed than other zones and that 77 companies had registered operations there because of the well-developed infrastructures and public utilities.
After the visit, Dr Bounthong Chitmany praised the Savannakhet SEZ for earning more revenue for the government and helping to improve living standards in the local community, as well as boosting exports to create investment tax value and provide jobs for local people.
He expressed the wish that the site would develop and prosper further in the future.
The Savan Seno Special Economic (Savan Park Zone C) is strategically located on the East West Economic Corridor and was developed on 234 hectares of wasteland into an industrial, commercial and logistics hub.
Savan Seno Special Economic Zone is the first SEZ in Laos and the Savannakhet Dry Port was the first approved dry port to be acknowledged by UNESCAP.
Former President Bounnhang Vorachit signed a ratification of the Savannakhet Dry Port to comply with UNESCAP requirements on October 16, 2019.
It is located on the East West Economic Corridor, which runs for 1,450km from Vietnam, passing through Savannakhet province in Laos to Thailand, and ending in Mawlamyine, Myanmar, linking the Andaman Sea with the South China Sea.
The Savan Seno Special Economic Zone is part of the Greater Mekong Sub-Region (GMS) development programme.
The value of transit cargo at the Savannakhet Dry Port in 2020 was US$6,855,500,323, rising to US$9,445,539,694 last year.
Savan Park is fully protected by Prime Minister’s Decree 177, which is dedicated to investment in the Savan Seno Special Economic Zone and was approved in 2003. As of today, the zone is still complying with this decree and investors are confident in it.
Savan Park was established in 2008 and was the first SEZ in Laos. Laos developed the SEZ as the Savan Seno Special Economic Zone Authority (SEZA), providing a one stop-service to all investors in the zone.
The Prime Minister’s decree offers a 2 to 10 year tax holiday, 8 percent or 10 percent company profit tax, 5 percent personal income tax, zero VAT, zero customs duty, and other incentives to businesses investing in the zone for a period of 75 years.
The SEZA is able to issue a Certificate of Origin for products “Made in Laos”, which means that goods bearing this certificate can be imported by most countries with zero or minimal import tax.
Savannakhet Dry Port has a multimodal transport system with a two-way service that combines trucking from all over China to the railway hub in Kunming, from where it links to the Laos-China Railway for transit to the Savannakhet Dry Port, then onwards through Savan Logistics’ established road networks and back.
This route offers significant cost savings and competitive transit times, providing a viable transportation alternative.
By Vientiane Times Advertorial Desk
(Latest Update November 11, 2022)