THURSDAY, March 28, 2024
nationthailand

Lao govt approves another SEZ near border with Thailand

Lao govt approves another SEZ near border with Thailand

VIENTIANE - The Lao government has agreed in principle to convert the BM Plaza shopping centre into a specific economic zone (SEZ) so the investor can take advantage of business incentives.

 
BM Plaza is located in Dongphosy village, Hadxaifong district near the Thai border, next to the Lao-Thai Friendship Bridge connecting Thailand’s Nong Khai province to Vientiane. 
The government set up a management committee for the zone at the end of last year, but they are now waiting for an official signing ceremony between the government and the developer to establish the zone, an official from the Lao National Committee for Special Economic Zones (NCSEZ) Secretariat said.
The new specific economic zone will bring the total number of SEZs nationwide to 13, including three SEZs and 10 specific economic zones. 
The three SEZs are Savan-Seno SEZ in Savannakhet province, Golden Triangle SEZ in Bokeo province, and Phousy SEZ in Luang Prabang.
Specific economic zones include Boten Beautiful Land in Luang Namtha province, Pakxe-Japan SME in Champassak province, Thakhaek 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 in Xaysettha district, and Dongphousy 1 and 2. 
The BM Group was well positioned by the first Lao-Thai Friendship Bridge in a strategic location with thousands of people passing through each day, making the area suitable for trade, service and tourism complex development, according to the developer. 
The BM Group has been granted a 50 year concession on nine hectares for investment and the group plans to expand this to 28 hectares after receiving approval from the government to convert it into a SEZ. 
According to the group the objective of converting the plaza into a SEZ is to develop the area into a modern trade and service complex, ready for the development of basic infrastructure. 
The SEZ will enjoy a special policy on tax, customs and administration in accordance with the single window service to facilitate investment and business operations. 
In addition, the zone will help to reduce costs for consumers, reduce the outflow of foreign currency and lower the trade deficit as well as help with Asean economic integration. 
The BM Group plans to build a trade centre on 5 hectares of land, a hotel on 3 hectares, a restaurant, a theme park on 7 hectares, warehouse on 5 hectares, financial institution on 3 hectares, a parking lot on 2 hectares, and a wastewater and refuse treatment facility on 1 hectare. 
Total investment in the development is estimated at about US$100 million, with the BM Group holding 80 per cent of shares, the government 15 per cent and the other 5 per cent held by a local businesswoman. 
The development is divided into three phases over three years.
Conversion of BM Plaza into a SEZ is expected to develop basic infrastructure, create jobs and income for local people, and provide a stable income source for Vientiane as well as contribute to the national budget. 
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