Savannakhet zone achieves targets

Under Prime Ministerial Decree No 177 issued in 2003 on management regulations and incentive policies for the Savan-Seno Special Economic Zone (SASEZ) in Savannakhet province, conditions were created to allow Laos markets to integrate with regional and global economies, with 75 businesses operating in the zone. The zone’s initial land area was about 305 hectares at site A as the service hub, and 20 hectares at site B as the logistics and industrial hub.

Today, the SASEZ also comprises zones C and D. Zone D is 118 hectares in size and is designated a residential hub, while zone C covers 234 hectares and is designated |as the commercial and industrial hub.

In a recent interview with the general manager of the Savan Pacifica Stream Development Company Limited, Tee Chee Seng, he said his company was responsible for the Savan Seno Special Economic Zone C, known as Savan Park. The company began operations in the zone in 2008 when they signed an agreement on a joint venture with the Laos government.

“Of the 75 units that now operate in the four zones, 47 are in our zone. This means our zone has developed more rapidly than others because we have followed the policy of the Laos government to bring more investors here,” Seng said.

The dry port is one of the most significant of the 47 units in Savan Park. It opened in March this year as part of the commercial and industrial hub for the gateway to the global market.

The dry port dispatches cargo for export using containers, under a system called the Less Container Load, which circumvents traditional problems involved in the export of crops such as cassava, rubber and rice.

In the past, Laos had to use containers sourced from seaports in Thailand and Vietnam. The containers would be loaded in Laos and then transported to coastal ports for onward shipment to other countries. This method meant that transport costs were very high.

The dry port has its own customs office where all the containers are checked before being shipped, after which they will be in transit and do not need to be opened up and checked again. 

“We have good infrastructure |and labour market and now have 1 million workers in Savannakhet province. Each year, 5,595 students graduate and the workforce is now sufficient to supply the needs of the business units here, after they have undergone training by us. 

So we have managed to solve the labour shortage problem and we don’t have to contend with the kind of issues we used to have. We are proud to be able to contribute to the creation of jobs for local people,” Seng said.