Mr Viengkhone Sitthixay (second left), Ms Zhang Xijing, Mr Sakhone Philangam (left) and Mr Feng Wanhao display signed project agreements.

Phase II VLP to offer more convenience, reduce transport costs, generate income

Phase II of the Vientiane Logistics Park (VLP) project will increase convenience, reduce transport costs in trading, and have the potential to attract investment from overseas and generate significant income for the government.

An agreement on the design and construction of the project was signed in Vientiane on Wednesday between the Vice President of the Vientiane Logistics Park, Mr Viengkhone Sitthixay, and the Deputy General Manager of China Construction Science and Industry Corporation., Ltd. (CCSIC)’s Overseas Department, Ms Zhang Xijing.
The signing was witnessed by the Managing Director of the Thanaleng Dry Port, Mr Sakhone Philangam, and the General Manager of CCSIC’s South Pacific, Mr Feng Wanhao.
The ceremony was attended by Minister of Planning and Investment Mr Khamjane Vongphosy, Deputy Minister of Public Works and Transport Mr Lan Sengaphone, Chairman/Founder PTL Holding Co.,Ltd and Chairman of the Vientiane Logistics Park Co.,
Ltd., Mr Chanthone Sitthixay, Deputy General Manager of China Construction Science and Industry Corporation., Ltd. (CCSIC)’s Overseas Department, Ms Zhang Xijing.
The Vientiane Logistics Park is a priority project of the National Logistics Development Strategy of the Lao government with the aim to fulfil the government’s policy to transform Laos into a centre of connection and integration between the Mekong sub-region and international regions, Mr Chanthone said.
The Vientiane Logistics Park is one of the important elements that, along with the International Thanaleng Dry Port, my company has been operating under the guidance and support of the Lao government and which opened for service in 2021, he said.
Thanaleng Dry Port has received a good response and is gaining unprecedented interest among the public, both in Laos and overseas. It has been successful in collecting sustainable income for the government’s budget, Mr Chanthone added.

Mr Chanthone Sitthixay.	Ms Zhang Xijing.	Mr Zhang Xiaojian.

In addition, it creates overall benefits in terms of reducing costs and time, providing comprehensive facilities for entrepreneurs to import and export goods both domestically and internationally with standards that are acceptable to the United Nations, which is a matter of pride for the people of Laos, he said.
The VLP covers a total area of ​​327 hectares starting from the Dongphosy power station on the Dongphosy-Chiangda road to the new intersection in Nakhuay Tay village, and is divided into seven zones.
Those are plant and animal quarantine, an oil storage facility, production and processing for export, the logistics park, free trade, technology and industry transformation, halal products, and administration and office space.
The whole logistics zone is expected to incur investment of about US$600 million, which is 100 percent Lao private investment. Construction is expected to be complete and full services to be available in the next 2-3 years, he said.
The first phase of construction, as well as the work of clearing land and building infrastructure, is expected to be complete in the third quarter of 2024.
“The Vientiane Logistics Park, when 100 percent complete, I believe will be able to deliver important benefits for socio-economic development as well as for local people. It will provide Laos with a commercial, light industrial and large-scale integrated logistics zone that is standard and modern, comparable to international facilities, increase product translation and cross-border trade, attract investment and foreign currency, and bolster international trade,” Mr Chanthone said.
It is also a new and sustainable source of income for the government and will create jobs and enhance and develop the commercial activities of SMEs, he added.
Since the opening of the Lao-China railway, many kinds and large numbers of agricultural products from Laos and Thailand have been exported to China, so it is essential that the necessary infrastructure is in place to facilitate this trade, he said.
With full cooperation from the Lao government and project coordinators, Ms Zhang said the project would be completed smoothly and on target.
China Construction Science and Industry Group Co., Ltd. is China’s largest steel structure industry group, a national high-tech enterprise, and a national intellectual property demonstration enterprise. It is affiliated to the world’s top 500 China State Construction Engineering Corporation.
The company aims to be a developing company in industrial technology and is striving to be competitive at the global level, focusing on the engineering sector, equipment and services supply, investment, research and development, designing, construction, and work operation for customers.
Prior to the signing ceremony on Wednesday, a delegation from China Construction Science and Industry Group Co., Ltd. visited various zones of the Vientiane Logistics Park and Thanaleng Dry Port.

Delegations from CCSIC, VLP and the Thanaleng Dry Port pose for a group photo during a visit to the Project Concepts Free Zone at the VLP.	Honoured guests pose for a group photo at the agreement signing ceremony in Vientiane on Wednesday.

By Advertorial Desk
 (Latest Update January 12, 2024)