INVESTMENT OPPORTUNITIES IN SEZ IN LAO PDR. Government s Office Lao National Committee for Special Economic Zone Secretariat Office

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1 INVESTMENT OPPORTUNITIES IN SEZ IN LAO PDR Government s Office Lao National Committee for Special Economic Zone Secretariat Office 1

2 Lao PDR: Strategic Location Laos is at the centre of the GMS Peace and stable political condition Low cost of land lease Low labor cost Stable and low cost of electricity Low risk from natural disasters Rich in natural resources 2

3 Country Strategy for SEZ Development Graduate from the least developing Country Millennium Development Goals Contribute GDP Increase Employment Increase Govt revenue Establish to approximately 25 zones in Legal acts on SEZ NCSEZ established S-NCSEZ established 2007 Govt, revenue, contribute to GDP growth Employment 46,000 people (direct) SEZ Established shall be reached to approximately 15 Vientiane Industrial zones and Trade area Savan-Seno Boten Golden Triangle Phoukhiew 3

4 Policy and Regulatory Frameworks The 7 th National Socio-Economic Development Plan (NSEDP) set out clear development policy Regulatory frameworks improved: Investment promotion law No. 02/NA was approved by the National Assembly in July 2009; Prime Minister s Decree No. 443 on Special Economic Zone dated 26/10/2010, as a legal framework to promote investment in SEZ. 4

5 Lao National Committee for SEZ (Chaired by Deputy Prime Minister) NCSEZ Secretariat Office Trouble-Shooting Unit Deputy Director General Deputy Director General Planning & Evaluation Finances & Administration International Cooperation Land & Environment Legal & Technical North Regional SEZA Central SEZA South Regional SEZA SEZ SEZ SEZ SEZ SEZ SEZ SEZ SEZ SEZ 5

6 On going SEZ and future plan for the establishment Name of SEZ Location 1. Savan-Seno Special Economic Zone (Lao government -Malaysian investor) 2. Boten Special Economic Zone (China) 3. Sarmliem Den Kham Special Economic Zone (China) 4. PhouKieuNakhon Specific Economic Zone (Lao ) Savanakhet province Luangnamth a province Bokeo province Khammouan province 5. Vientiane Nonthong Industry and Trading SEZ 6. Saisetha Specific Economic Zone 7. Golf Long Thanh SEZ 8. Dongphosy Specific Economic Zone 9. Saisetha Kuamluam Specific Economic Zone 10. That Luang Lake SEZ 6666 Vientiane capital Officially Endorsed SEZs SEZs Under Consideration Areas proposed by provinces 6

7 Vientiane Industrial and Trade Zone Location: Vientiane Capital Foundation year: 2011 Investment Amount: 12,900,000 USD Land Size: 110 ha Land Tenure: 75 years Rental of Land: USD/m2/year Electricity: USD/Kwh Water: USD/m3 Developer: Government + Private Objective: Tourism, Trade, Service, Industry Location Advantage: Available infrastructure system The project site is located 22Km from the center of Vientiane Capital

8 Vientiane Industrial and Trade Area Investment Projects 1. Industries (Textile, Shoe, Cloth, Bicycle, Electronic Parts Manufacturing Plant) 2. Commerce (Retail Store, Trade Center, Commercial Building) 3. Services (Training Center, School, Hospital, Hotel)

9 Incentives for SEZ Investment Developer Tax exemption for equipment and raw materials for construction; Lower income tax and value added tax (compare to normal investment); Land lease exemption for some period of time (during the construction period); To be appointed as the chair or deputy chair of economic board and has some important roles in operating and managing the zone; Has the right to decide the price of land lease in its zone. Investors Tax exemption for equipment and raw materials for construction; Lower income tax and value added tax (compare to normal investment); Get the business license and other service from economic board or management board of the zone through the modality of one stop service. 9

10 How to apply for and invest in SEZ Zone developer Application forms to S- NCSEZ: 1. Master plan of proposed SEZ Development 2. Economic and Technical analysis report 3. EIA Report 4. Draft of contract agreement 5. Financial statement Investor To invest in an existing SEZ, investor shall fill in the application form and submit to the Economic Board of any existing SEZ. A business license can be obtained within 24 hours 10

11 Thank you for your attention Contact Address Government s Office Lao National Committee for Special and Specific Economic Zones Secretariat Office Vientiane, Lao PDR Tel and Fax: (856-21) NCSEZ@laotel.com 11