All necessary facilities at the Savan Industrial and Commercial Park in Savannakhet province are complete and ready for businesses to commence production of goods for export.
The park is designated as a ‘C Zone’, an industrial and commercial area, in the Savan Seno Special Economic Zone in central Laos that aims to attract foreign investment in the strategic East West Economic Corridor.
Mr Somsavat Lengsavad joins other officials to cut a ribbon to open the Savan Industrial and Commercial Park in Savannakhet province.
Deputy Prime Minister Somsavat Lengsavad officially opened the park on Sunday after the necessary infrastructure was in place.
High-ranking officials from Vientiane and several provinces, as well as project developers, also attended the event.
The park covers an area of about 50 hectares and has roads, electricity, water, telecommunications, water treatment and liquid waste management systems.
Some 21 companies have registered to build factories and conduct business activities in the park, of which five are already operating and the remainder are expected to start next year, according to officials from the Savan-Seno Special Economic Zone Authority.
Construction of infrastructure began after representatives from the government and the Malaysian developer – Pacifica Streams Development Company – signed an agreement in 2008.
Under the agreement, the developer spent about US$24 million to install infrastructure in an area of 234 hectares in the zone, which is located 10km from the provincial capital.
The Lao government holds a 30 percent stake in the project while the Malaysian company holds the remaining 70 percent. The project concession period is 50 years, after which all activities will be handed over to the government.
The export production zone will feature a commercial and services complex, including shops, a vocational training centre, healthcare centre and other facilities. Establishment of the Savan Seno Special Economic Zone is divided into four phases, with each phase to take four years to complete, but dependent on investor demand.
It is expected the zo ne will attract investors seeking to take advantage of the low labour costs and strategic position of the area. Savannakhet province has become a major transit route linking Vietnam to Thailand and other countries in the region. Laos receives trade privileges from more than 40 nations so investors operating in the zone can benefit from low taxes on exports.
The government believes the special economic zone will bolster the local economy and raise the quality of life for local people by creating jobs and generating direct and indirect revenue.
