Laos earns US$112 mn from exports by SEZs

Laos earned US$112.14 million from products exported by Special Economic Zones (SEZs), or about 25 percent of the annual target for the first six months of the year.
The figure was reported by the Deputy Prime Minister, Dr Sonexay Siphandone, during the National Assembly’s third Ordinary Session on Monday.

A model of the new modern water market being constructed at the Golden Triangle SEZ to attract tourists.

Authorities attracted a total of 53 companies to invest in the SEZs or 53 percent of the target, he said.
The Lao government is striving to attract more investors in order to create jobs for the local people and generate more revenues for the state budget.
The Special Economic Zone Management Committee of the Special Economic Zone Promotion and Management Office under the Ministry of Planning and Investment plans to register more than 700 companies for operations in SEZs over the next five years. The plan was reported by the office at the end of last year.
It is expected that 700 companies will create more than 130,000 jobs and authorities can collect more than 1.2 trillion kip in revenues from taxes paid by businesses operating in the SEZs.
However, the Covid-19 pandemic and the subsequent financial crisis emerged as challenges to attracting investors, and the SEZs have been directly affected, especially in terms of attracting investments, collecting taxes, and creating jobs.
The Special Economic Zone Management Committee will try to encourage manufacturers to turn out more goods for export and to resolve various problems that have arisen at SEZs.
The committee will also reassess SEZ agreements on a regular basis to ensure they are being complied with.
Zones that are productive will be strengthened so that they become models for future development, while zones that make medium level of progress will be advertised among additional potential investors in the hope of bolstering their operations.
Steps will be taken to resolve land disputes and ensure that developers have access to funding.
In the case of SEZs that make less progress, the committee will work with developers to seek solutions. In zones where no progress has been made, the committee has invited developers to help resolve difficulties.
To address various problems, the government will follow up on the application of regulations and agreements drawn up.
Authorities will also improve the one-stop service for SEZs so that it is easier for businesses to set up operations, while licences should be issued on site.
The SEZ Administrative Committee will further improve the structure of the SEZ management committees in Vientiane and provinces so that they are more effective.

By Times Reporters
(Latest Update June 23, 2022)