Laos, Thailand seek bilateral cooperation at SEZs

Lao National Committee for Special Economic Zone (NCSEZ) and Thailand's Policy Committee on Special Economic Zone Development are preparing to sign a memorandum of understanding (MoU) to inaugurate cooperation at special and specific economic zones of the two countries in order to ensure benefits for the two sides, a senior official from the Lao National Committee for Special Economic Zones (NCSEZ) told Vientiane Times yesterday.

“However, mechanisms and methods to implement bilateral cooperation haven't been worked out yet and following the MoU we will seek cooperation on each specific sector,” added Deputy Minister of Labour and Social Welfare and Vice President of the NCSEZ and Head of the NCSEZ Secretariat Ms Bouatha Khattiya.

Thailand Commerce Minister General Chatchai Sarikulya told a recent seminar that SEZs in border areas of the two countries would be instrumental not only in boosting trade over next three years but also investment.

Thailand plans to develop SEZs in 10 provinces, six of which have been designed in the first phase: Tak, Sa Kaeo, Trat, Mukdahan, Songkhla and Nong Khai.

The designated provinces in the second phase are Chiang Rai, Nakhon Phanom, Kanchanaburi and Narathiwat. General Chatchai was quoted as saying the Thai government had earmarked 80 billion baht to develop infrastructure to support first-phase development and 170 billion for the second phase.

Of the two phases of SEZ development, four zones will be located in border areas adjacent to Laos: Mukdahan, Nong Khai, Nakhon Phanom and Chiang Rai.

Laos currently has two SEZs and nine specific economic zones with nine of these located in areas bordering Thailand. The two SEZs are Savan-Seno SEZ in Savannakhet province and Golden Triangle SEZ in Bokeo province.

Specific economic zones include Boten Beautiful Land in Luang Namtha province, Pakse-Japan SME in Champasak province, Thakhek and the Phoukhiew SEZ in Khammuan province.

Other specific economic zones in Vientiane are That Luang Marsh, Vientiane Industry and Trade Area (VITA Park), Vientiane Long Thanh Golf Course, Xaysettha, as well as Dongphousy.

According to NCSEZ, developers and investors in the SEZ were entitled to receive privileges including tax exemption for importing equipment and raw materials for infrastructure construction; and reduction in income tax and value added tax, depending on business type.

In addition, they would receive the right to reside in Laos with family during the time of the investment; other promotional privileges which were indicated in laws and regulations; and a one stop service at each zone.