INVESTMENT OPPORTUNITIES IN SEZ IN LAO PDR

Government’s OfficeLao National Committee for Special Economic Zone

Secretariat Office1

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

20032003

2007

Govt , revenue, contribute toGDP growth Employment 46,000 people (direct) SEZ Established shall be reached to approximately 15 zones

• Contribute GDP• Increase Employment• Increase Govt revenue• Establish to approximately 25

zones in 2020

Legal acts on SEZNCSEZ establishedS-NCSEZ established

Vientiane Industrial and Trade area

Phoukhiew

Golden TriangleBoten

Savan-Seno

Millennium Development Goals

Policy and Regulatory Frameworks

4

• The 7th National Socio-Economic Development Plan (NSEDP) 2011-15 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 SpecialEconomic Zone dated 26/10/2010, as a legalframework to promote investment in SEZ.

5

Trouble-Shooting Unit

Deputy Director General Deputy Director General

Planning & Evaluation

Finances & Administration

International Cooperation

Land & Environment

Legal & Technical

North RegionalSEZA

CentralSEZA

South RegionalSEZA

NCSEZ Secretariat Office

Lao National Committee for SEZ(Chaired by Deputy Prime Minister)

SEZ SEZ SEZ SEZ SEZ SEZ SEZ SEZ SEZ

On going SEZ and future plan for the establishment Name of SEZ Location

1. Savan-Seno Special Economic Zone (Lao government -Malaysian investor)

Savanakhetprovince

2. Boten Special Economic Zone (China)

Luangnamtha province

3. Sarmliem Den Kham Special Economic Zone (China)

Bokeoprovince

4. PhouKieuNakhon Specific Economic Zone (Lao )

Khammouanprovince

5. Vientiane Nonthong Industry and Trading SEZ 6. Saisetha Specific Economic Zone7. Golf Long Thanh SEZ8. Dongphosy Specific Economic Zone9. Saisetha Kuamluam Specific

Economic Zone10. That Luang Lake SEZ6666

Vientiane capital Officially Endorsed

SEZs

SEZs Under Consideration

Areas proposed by provinces

6

Vientiane Industrial and Trade ZoneLocation: Vientiane Capital

Foundation year: 2011Investment Amount: 12,900,000 USD

Land Size: 110 haLand Tenure: 75 years

Rental of Land: 0.30 - 0.72 USD/m2/yearElectricity: 0.059 - 0.065 USD/Kwh

Water: 0.25 - 0.35 USD/m3Developer: Government + PrivateObjective: Tourism, Trade, Service, Industry

Location Advantage: Available infrastructure system The project site is located 22Km from the center of Vientiane Capital

Vientiane Industrial and Trade Area

Investment Projects1. Industries

(Textile, Shoe, Cloth, Bicycle, Electronic Parts Manufacturing Plant)2. Commerce

(Retail Store, Trade Center, Commercial Building)3. Services

(Training Center, School, Hospital, Hotel)

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

How to apply for and invest in SEZ

Zone developerApplication forms to S-

NCSEZ:1. Master plan of proposed

SEZ Development2. Economic and Technical

analysis report3. EIA Report4. Draft of contract

agreement5. 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

Thank you for your attentionContact Address

Government’s OfficeLao National Committee for Special

and Specific Economic ZonesSecretariat Office

Vientiane, Lao PDR

Tel and Fax: (856-21) 254474E-mail: NCSEZ@laotel.com

www.sncsez.gov.la 11