Philippines Ambassador​ ​to Laos visits Savannakhet Special Economic Zone
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The Savannakhet Special Economic Zone C – Savan Park and Savannakhet Dry Port may be welcoming more business operators from the Philippines after the Philippines Ambassador to Laos and her delegation visited the site on July 25.
The visit aimed to explore the possibility of investment in Savan SEZ by Philippine companies and to learn about the investment process at the Savan Park SEZ.
The delegation, led by Ambassador Deena Joy Amatong, was welcomed by the General Manager of Savan Park, Mr Tee Chee Seng and Chief Executive Director of SEZ, Mr Phanomkone Dararasmy.​
Ambassador Amatong heard about the development of the site since its opening, and the impact of inflation on companies at the site, especially capital costs.
Mr Tee Chee Seng said that many companies in Thailand had expressed interest in setting up production at the Savan SEZ following widespread flooding in Thailand in 2011 and the rise in the minimum wage the following year. 

(from sixth left) Ambassador​ Deena Joy Amatong ,CEO of Savan Logistics and Founder of Savannakhet Dry Port, Mr Jean Pierre Grzelczyk, and General Manager of Savan Park, Mr Tee Chee Seng gather for a photo during their visit to the Savan SEZ.

“The trade barrier between China and the US in 2019 also persuaded companies in small countries to expand their business overseas. Savannakhet is a large province with a sizeable young workforce that can support operations at the site,” he added.
He told the Ambassador and her delegation that the Lao government has policies to promote investment in SEZs. For example, investors can get a business or investment registration document and a company stamp within five working days after application.
In addition, work and stay permits as well as visas can be issued at government offices on site.
Companies with operations at the Savan SEZ come from Europe and Asia. They include the manufacturer of a Covid-19 vaccine from Singapore, as well as Hitech brand apparel manufactured by companies based in Vietnam and Cambodia. SEZs in Laos are authorised to produce Everything But Arms (EBA).
According to Savan SEZ officials, 60 percent of the Savannakhet Special Economic Zone C – Savan Park, Savannakhet Dry Port has been leased.
Most of the items produced in factories at the Savan SEZ are exported through sea ports in Thailand and Vietnam.
The Philippines delegation visited several factories and every section of the Savan SEZ.
The Savannakhet Special Economic (Savan Park Zone C) is strategically located along the East-West Economic Corridor (EWEC) and was developed on 234 hectares of wasteland into an industrial, commercial and logistics hub.
Through the strategic location setup of the EWEC by JICA, Savan Park SEZ realised the potential to develop this area into a free trade industrial zone.
Plenty of investors in the region are now looking to invest in Laos because of the incentives offered, the country’s political stability, the relative lack of natural disasters, low initial investment costs, and the low or zero import duty paid by importing countries on products that are “Made in Laos”.
The Savannakhet Special Economic Zone was the first SEZ to be established in Laos while the Savannakhet Dry Port was the first approved dry port to be acknowledged by UNESCAP.
Former President Bounnhang Vorachit signed a ratification of the Savannakhet Dry Port to comply with UNESCAP requirements on October 16, 2019.
It is located on the East-West Economic Corridor (EWEC) at a distance of 1,450km from Vietnam, passing through Savannakhet province in Laos to Thailand and ending in Mawlamyine, Myanmar, linking the Andaman Sea with the South China Sea.
The Savannakhet Special Economic Zone is part of the Greater Mekong Sub-Region (GMS) development programme.
A total of 76 companies are currently registered in the Savan Park SEZ Zone C, which earns more tax revenue for the government and helps to improve living standards for the local community, as well as boost exports.
During the Covid-19 pandemic, a significant increase of 42 percent in the logistics value was added, enabling the reduction of vessel frequency, and allowing the usual operation of road freight services.
The total value of imports in 2020 was recorded at over US$214,360,513.35 while the value of exports rose to over US$245,640,544.16.
The record for imports in 2021 was over US$204,005,109.02, with exports rising to US$246,437,926.71.

Ambassador​ Amatong​ (second left) and her delegation visit KP Beau Lao factory in the zone.	The delegation visit Essilor factory in the zone on Monday.

The value of transit cargo at the Savannakhet Dry Port in 2020 was US$6,855,500,323, rising to US$9,445,539,694 last year.
Savan Park is fully protected by Prime Minister’s Decree 177, which is dedicated to investment in the Savannakhet Special Economic Zone and was approved in 2003.  
Savan Park was established in 2008 and was the first SEZ in Laos. Laos was able to develop the SEZ as the Savannakhet Special Economic Zone Authority (SEZA), providing a one stop-service (OSS) to all investors in the zone.

By Advertorial Desk
 (Latest Update July 27, 2022)