Khone Phapheng waterfall to become an economic zone
Authorities in Champassak province plan to establish a new special economic zone, aiming to boost foreign investment in the province, according to a senior official.
Deputy Director of the provincial Planning and Investment Department, Mr Khambene Keokhounmuang, said yesterday the provincial administration had agreed to earmark an area at Khone Phapheng, the largest waterfall by volume in Southeast Asia, as an economic zone.
“We are preparing documents to seek permission from the government to establish the special economic zone,” he told Vientiane Times.
He said the area would accommodate tourism-related businesses. The Khone Phapheng waterfall and surrounding area is a popular tourist destination where visitors can observe the lifestyle of local riverside communities, as well as explore the remains of a railway built by the French.
The waterfall is located about 130km from Pakxe, the provincial capital of Champassak. The area is well-known as a habitat of the endangered Pa Kha or Irrawaddy dolphin, a major attraction for tourists, as the only other area they can be observed is a small stretch of the Mekong River in Cambodia.
Mr Khambene said he was unable to provide details as to the exact size of the zone since the particulars of the proposed project are yet to be finalised.
He said the provincial authorities had given permission to a Vietnamese company to conduct a feasibility study into developing infrastructure in the zone, details of which will then be used to calculate how much investors would be charged to run a business in the area.
Officials said domestic and overseas companies investing in special economic zones in Laos may be entitled to incentives including tax exemptions or reductions. The process to approve investments in such zones is also fast tracked. Champassak provincial authorities believe establishing the special economic zone would attract foreign investment into the province, although it would not generate tax revenues for the local government.
Increasing investment in the province will not only advance economic growth, but also boost employment and income opportunities for local people.
According to a report from the department, foreign direct investment in the province rose by 37.5 percent in the first quarter of 2009 compared to the same period of 2008.
The province approved 184 projects valued at a total of 3.285 trillion kip (US$391 million) in the 2008-09 fiscal year. In the previous fiscal year, 48 projects valued at a total of 826.7 billion kip (US$97.2 million) were approved.
The majority of investments are in the agriculture, tourism, industry and services sectors. With rapid socio-economic development expected over the coming years, the province holds great potential for investors.
By Ekaphone Phouthonesy (Latest Update April 7 , 2010)
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