Savan Park exports set to increase 15-20%
VIENTIANE (Vientiane Times/ANN) - Exports from Savan Park (Zone C) in the Savan-Seno Special Economic Zone (SEZ) in Savannakhet province are expected to increase by 15 to 20 per cent this year due to rising production capacity.
Savan Park achieved exports of more than US$400 million last year and the figure is set to increase to more than US$500 million this year, General Manager of Savan-Seno Special Economic Zone’s Savan Park, Mr Tee Chee Seng, told media recently.
Currently, more than 60 companies are registered to invest in the zone, of which about 40 are building factories and engaged in commercial operations, he said.
Some companies have started phase II of construction after finishing the first phase, Mr Tee said.
The registered and operational companies are currently manufacturing automotive, aerospace and machinery parts, as well as electronic and electrical appliances.
“Investment in the zone has become more transparent after the government improved policies on the amount of paperwork necessary to begin business operations, and introduced special policies for special economic zones,” he said.
The zone has all the necessary infrastructure and utilities in place, he added.
Tax policy and investment promotion are included in the profit tax holiday for two to 10 years (starting from the profit-making year) with an 8-10 percent profit tax after the tax holiday period.
Personal income tax (both expatriate and local staff) is 5 percent throughout, and there is a 5 percent dividend tax after the tax holiday and 0 percent value-added tax and import customs duty rate. Licence applications are approved within five working days.
Mr Tee believes the promotion policies will instil more confidence and attract more investors to the zone.
Savan Park has been designated a commercial and industrial hub and is attracting an increasing number of investors from Asia and Europe.
Each year, Savan Park has created jobs and developed the skills of thousands of local people and handed over large amounts in tax from exports and imports.
Savan Park is zoned as a free trade industrial and commercial centre under the Prime Minister’s Decree 148. Investors who set up a base in this zone enjoy lucrative benefits and privileges as detailed in Prime Minister’s Decree 177.
Savan Park was established in 2008. There are currently 12 special and specific economic zones in Laos.