Number of workers in Saysettha Development Zone set to soar next year

A developer in the Saysettha Devopment Zone in Vientiane expects the number of employees to skyrocket to 12,000 next year, with many more people needed to work in factories and other industries.
This year, Lao-China Joint Venture Investment Co., Ltd., which is the zone developer, investor and operator, plans to continue developing infrastructure to ensure the perfect completion of the 1,000-hectare site.
The company’s Deputy General Manager, Mr Khiengkham Phoutchanthavongsa, told Vientiane Times there are currently about 5,000 people working at various factories and companies but that next year the number will likely be 12,000.

Mr Khiengkham Phoutchanthavongsa talks to Vientiane Times.)

So far, 107 businesses from China, Laos, Singapore, the USA, Japan, Thailand and Malaysia have registered to set up operations within the zone, with most being Chinese. 51 have officially launched operations.
One of the factories in search of a large number of employees is Best Garment (Laos) Co., Ltd., a subsidiary of the Best Garment Group in China, which is looking to hire about 2,000 factory workers.
The company is preparing to go into production after checks certify that it can operate to international standards across all systems, including safety aspects.
Last year, despite the Covid-19 outbreak, the zone was able to attract 20 new investing enterprises.
It is believed that more companies and factories will begin operations this year, which will be an opportunity to provide more jobs.
Mr Khiengkham said that to prepare for a possible increase in investors and labourers in the zone, Lao-China Joint Venture Investment Co., Ltd. will continue to build standard factories for investors to rent.
The demand for rental property is increasing and last year 80 percent of all existing standard factories were rented.  Another project in the pipeline is the construction of dormitories, because Covid-19 remains a threat.
This means investors need safe places to house their workers where they can stay at all times so they remain on site and can be supervised. This will reduce the likelihood of a virus outbreak and the disruption of business operations.
Companies wishing to invest in the zone will benefit from incentives offered by Lao-China Joint Venture Investment Co., Ltd. such as a one-door service for business licences and tax services, and help with labour supply.   
Mr Khiengkham also outlined production figures and the value of imports and exports including the tax generated for the government last year.
In 2021, the total value of production reached US$50 million. At the same time, new investments rose to US$150 million and businesses created more than 3,100 jobs for Lao nationals.
The total value of imports reached US$160 million while the export value was US$30 million. The government earned US$655,000 from business generated by the zone.
Products exported by companies operating in the zone include garments, chips and LED lights.
Last year, the zone developer signed a cooperation agreement with a Chinese railway group to construct a logistics area that can be used as a modern and comprehensive warehouse. It also finalised a contract with a Chinese international mobile company to develop a smart city and data centre within the zone.
The venture cooperated with a Chinese railway supply company (Lao subsidiary) to provide a tax and logistics office. It also partnered with the China electricity investment company group in Guangxi to develop a solar power plant and general energy development.
So far, the developer has completed the construction of fundamental infrastructure, such as piping, a tax office, dormitories, 115kV transmission line to ensure a stable electricity supply, and a 20,000 cubic metre tank that ensures high water high pressure.  
Mr Khiengkham urged authorities to create confidence in companies investing in or setting up business in the zone by taking rapid action to tackle some of the problems faced by investors.
This includes theft, allowing registered enterprises within the zone to conduct business outside the zone, and linking registered data within the zone to the data system of the Ministry of Industry and Commerce and the Vientiane Industry and Commerce Department.
Finally, he called on authorities to shorten the procedures needed in providing a licence to hire foreign labourers.
All these problems have been reported to the committee in charge of Vientiane economic zone management.
Saysettha Development Zone is a state-level cooperative project which is jointly initiated by the governments of Laos and China. The zone is invested, developed and operated by Lao-China Joint Venture Investment Co., Ltd.
In 2010, Vientiane authorities and Yunnan Construction and Investment Holding Group. Co.,Ltd signed an agreement on the establishment of a Lao-Chinese joint venture company to be in charge of investment and construction of the development zone, according to the company.
The zone will be built in three phases. Phase I will mainly see the development of industries on a project area of 4 square kilometres. Phases II and will mainly see the development of logistics, commerce, trade, tourism and real estate businesses and work towards the creation of Vientiane New City.
So far, infrastructure has been built to support projects and investment with over US$600 million being invested in land, infrastructure and supporting facilities.
The zone is located 14km from the northeast area of downtown Vientiane, the capital city of Laos. It is in the core area of the New City of Vientiane. The golden location of the zone lies in the fact that to the north is National Highway No. 13 and to the south is 450 Avenue. Furthermore, it is just 14km from the Lao-Thai Friendship Bridge and 19km from Wattay International Airport.

By Advertorial Desk
 (Latest Update March 8, 2022)