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Cards by Country Index cards by country LAO SPECIAL ECONOMIC ZONES, SPECIFIC ECONOMIC ZONES Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Lao Oicial Terms for Free Zones Year of promulgation of the irst text of law concerning the Free Zones Special Economic Zones, Speciic Economic Zones - Possibility to be established as Exact number of Free Zones Free Points 10 No TABLE OF CONTENTS General information ........................................................................................................................................................................4 List of operating Free Zones .........................................................................................................................................................5 Contacts ............................................................................................................................................................................................ 11 Free Zones Web sites selection ................................................................................................................................................ 11 2 WFZO Index cards - Lao Nanning CHINA CHINA VIETNAM MYANMAR 03 Hanoi 02 Thanh Hoa LAOS CHINA Chiang Mai Lampang Vientiane 04 05 10 07 08 09 Udon Thani 06 Phitsanulok 01 THAILAND Khon Kaen Hue MYANMAR Da Nang Ubon Ratchathani Nakhon Ratchasima Tavoy Play Cu Nakhon Pathom Bangkok CAMBODIA Qui Nhon FREE ZONES IN LAOS 100 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones 01 - Savan-Seno Special Economic Zone (SSEZ) 06 - Phoukyou Specific Economic Zone 02 - Golden Triangle Special Economic Zone 07 - Thatluang Lake Specific Economic Zone 03 - Boten Beautiful Land Specific Economic Zone 08 - Longthanh - Vientiane Specific Economic Zone 04 - Vientiane Industrial and Trade Zone 09 - Dongphosy Specific Economic Zone 05 - Saysettha Development Zone 10 - Thakhek Specific Economic Zone © Sébastien Piantoni - Conception: François Bost EA 2076 Habiter - University of Reims - 2017 Map Projection: WGS 1984 3 WFZO Index cards - Lao GENERAL INFORMATION Oicial deinition Decree on Special Economic Zone and Speciic Economic Zone in the Lao PDR. No. 443 /PM. 26/10/2010 Article 2. “Special Economic Zone and Speciic Economic Zone Special Economic Zone is the new economic development area that the Government has determined as the area having the location and economic environment which can provide facilities and autonomy in undertaking business operations more than other areas countrywide, through compre- hensive building of social and economic infrastructures, institutions and so on with a view to raising the competitive capacity of the business operations which will be the incentive for attracting the investment of all parties so that the economy in this area may be developed at a faster pace, compared to other areas. The Special Economic Zone re- ceives special promotion privileges, has autonomous economic and inancial system, applies the management and administration system according to the mechanism of ‘smaller administration unit but wider society’, is supervised by the Administrative Committee and the Economic Executive Board, has the system ensuring the security, the protec- tion of ine national culture and the sustainable conservation of environment, has an area of one thousand hectares and over, may comprised many speciic economic zones. In case there are peoples living in the zone, it is not required to move them out from the Special Economic Zone. On the contrary, the arrangement shall be made to allow them to have the job and participate with the Zone in the development and have sustainable income. Speciic Economic Zone is the area that the Government has determined as the area having the location and econo- mic environment which can provide facilities and autonomy for undertaking business operations more than other areas countrywide, through comprehensive building of social and economic infrastructures, institutions and so on with a view to raising the competitive capacity of the business operations which will be the incentive for attracting the investment of all parties so that the economy in this area may be developed at a faster pace, compared to other areas. The name of the Speciic Economic Zone shall be based on speciic features of a zone characterized by the infrastructures and institutions that provide the facilities to the business, production and service operations which are varied depending on the speciic characteristic of each type required to be developed. The Speciic Economic Zone receives speciic promotion privileges, has autonomous economic and inancial system, is managed and administered by the Economic Executive Board according to ‘one-stamp mechanism’ and has a number of business, production, trade and service operations units for which the areas boundaries are clearly determined, and there are no peoples living in these areas. The Speciic Economic Zone inside the Special Economic Zone is established according to the agreement between the investor and the Administrative Committee and/or the Economic Executive Board of the Special Economic Zone. The Speciic Economic Zone outside the Special Economic Zone is established according to the procedures for consi- dering the establishment speciied in this Decree and to the agreement between the Government and the investor. The Special Economic Zone and the Speciic Economic Zone are called in abbreviation as “SEZ” and are written in En- glish language as: Special Economic Zone and the Speciic Economic Zone (“SEZ”). “ Source: https://www.wto.org/english/thewto_e/acc_e/lao_e/WTACCLAO20A1_LEG_3.pdf Number of free 10 Special Economic Zones and Speciic Economic Zones. zones http://www.laoembassy.com/Laos%20to%20build%2041%20special%20economic%20zones.pdf The government plans to build 41 special and speciic economic zones in a bid to attract foreign direct investment to boost development in rural areas, of which 25 will be built over the next 10 years. http://www.laoembassy.com/Laos%20to%20build%2041%20special%20economic%20zones.pdf N. of act. comp. No information. in Free Zones Main sectors of Electrical wire manufacturing factory, food-processing factory, wood products industry, activity textile, shoe, bag manufacturing plant, automobile assembly plant, services, logistic and warehousing activities, tourism, etc. Total job num- No information. bers 4 WFZO Index cards - Lao Distribution of China, Vietnam, Malaysia, etc. investors Exports and No information. sales Free zones No information. contribution to the nat. eco. Corporate Tax Incentives for SEZ Investment: and Incentives 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 impor- tant • 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. http://www.asean.or.jp/ja/wp-content/uploads/2013/10/01_Ms.-Phanchinda-Lengsavad_SEZ.pdf Free Zone law Special Economic Zone and Speciic Economic Zone in the Lao PDR No. 47/SC, dated 26 October 2010 Decree on Special Economic Zone No. 47/PMO, Dated 26/10/10 https://www.wto.org/english/thewto_e/acc_e/lao_e/WTACCLAO20A1_LEG_3.pdf LIST OF OPERATING FREE ZONES 1 - Savan-Seno Special Economic Zone (SSEZ) The site is situated along the East West Economic Corridor which stretched from the Lao/Vietnam border at Dansavanh to the Lao/Thai border at Mukdahan. This site is ideal- Location ly placed at KM10 Savannakhet Seno highway at the fringe border of the Savannakhet town. 954 ha. Surface Area http://www.savanpark.com/?page_id=219 Savan-Seno Special Economic Zone Authority Phetsalad Road, Khanthabouli District Savannakhet Province, Lao PDR. Tel./Fax.: (856 41) 251487 Head Oice: KM 10, Savan Park, Contacts Nongdeun Village, Kaysone Phomvihane District, Savannakhet Province, Lao PDR Tel.: +856 41 260 241 / +856 41 210 555 / +856 41 210 556 Fax: +856 41 260 242 / +856 41 210 556 http://www.savanpark.com/?p=1737 5 WFZO Index cards - Lao Established in 2003. Government 100 %. Total Investment 74,000,000 USD. On 24 February 2008, the Government of Lao PDR and Malaysia based Paciica Streams Development Co.Ltd. signed a Project Development(PDA) where both parties agreed to jointely research and develop a new commercial and industrial hub in Savannakhet Province of Laos. Under the agreement, Savan Paciica Develpmnet Co.Ltd. – a joint venture company formed by the Government of Lao PDR and Paciica Streams Deve- lopment (Malaysia) Co.Ltd. – will undertake the responsibility to set up and develop the Savan Park Special Economic Zone. Savan Paciica Development Co.Ltd. aims to pro- mote a new economic mechanism that encourages transition from a planned to market –oriented economy in Savannakhet, thus, attracting Foreign Direct Investment (FDI) to Laos and accelerating development in the Special Economic Zone. http://www.savanpark.com/?page_id=24 Business priorities: # Service Sector:
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