Lao Economy

Laos SEZs Prove To Be Major Job Generators

SIXTY-FIVE companies from Laos and foreign countries including Thailand at the Savan-Seno Special Economic Zone have created over 4,500 jobs for local people.

According to Thongsay Sayavongkhamdy, a senior official from the Savannakhet provincial authority, from now until 2020, both local and overseas companies are expected to hire another 15,000 locals.

During the 8th provincial Party Congress, he said investment in the Savan-Seno Special Economic Zone is now booming, with 65 companies having registered to operate there.

“The number of registered companies is actually more than 65 but these are the most active companies,” he said.

According to Thongsay, the foreign companies registered at the zone come from Canada, the Netherlands, France, Japan, the Republic of Korea, Hong Kong, Malaysia, Thailand and Laos. He said that many of these foreign companies still want to hire more Lao employees.

Thongsay said Japanese multinational corporations Nikon and Toyota recently decided to build factories in the Savan-Seno Special Economic Zone, as Laos becomes more closely integrated with the region and the world. Nikon, a Japanese multinational corporation headquartered in Tokyo, has decided to build a factory in the zone to reinforce its digital SLR camera-manufacturing organisation and reduce costs.

Toyota and other leading companies from the region are also relocating their factories to Laos.

The Savan-Seno Special Economic Zone was established in 2003. Special and specific economic zones have become the main driver of growth in the industrial and service sectors in Laos, laying the foundation for diversifying the nation’s economy into the future. The development of these zones is part of the Laos government’s policy to boost economic growth and generate job opportunities for local people through modernisation and industrialisation.

Laos currently has 11 such zones, including the That Luang Marsh specific economic zone in Vientiane, Savan-Seno special economic zone in Savannakhet province, Golden Triangle special economic zone in Bokeo province, Boten Dankham specific economic zone in Luang Namtha province, Vientiane Long Thanh Golf Course in Vientiane, the Phoukhiew specific economic zone in Khammuan province and Pakxe-Japan Specific Economic Zone in Champassak province.

Source: The Nation