Mr Somboun Phongsavanh (left) shakes hands with Dr Sathabandith Insisiengmay after signing the agreement.

Govt gives green light to Phongsavanh Group for study of new Laos-Vietnam expressway

The government has authorised the Phongsavanh Group to carry out a feasibility study involving the survey, design and construction of an expressway connecting Vientiane through Xaysomboun, Xieng Khuang and Huaphan provinces to the Nam Souay border crossing with Vietnam.

Mr Bouachanh Ouansavanh.

Dr Sathabandith Insisiengmay.

On behalf of the government, a Memorandum of Understanding (MOU) on the feasibility study was signed in Vientiane on Friday by Deputy Minister of Planning and Investment, Dr Sathabandith Insisiengmay; Deputy Director of Roads Department, Mr Arthnada Boulom; and representatives of the Planning and Investment Departments in Xaysomboun, Xieng Khuang and Huaphan provinces.

On behalf of the Phongsavanh Group, the MOU was signed by the Chairman of Shareholders of the Phongsavanh Group, Mr Somboun Phongsavanh; Vice Chairman and CEO of the Phongsavanh Group, Ms Sengdao Bouphakonekham; and the Chief Administrative Officer of Phongsavanh Bank, Mr Southideth Nalyvan.

The signing ceremony was also attended by Deputy Prime Minister, in charge of national defense and security affairs, General Chansamone Chanyalath; Minister of Planning and Investment, Dr Phet Phomphiphak; other relevant government officials and Phongsavanh Group executives. 

Under the agreement, the feasibility study will be carried out over 24 months. If the study provides positive results and is approved, construction of the expressway is proposed under the Build, Operate and Transfer (BOT) model.

Leaders and representatives of the Phongsavanh Group, officials from government ministries and provinces pose for a group photo after signing the agreement.

The Phongsavanh Group submitted its intention to carry out the study to the government through the Ministry of Planning and Investment as the researcher, followed by submission to the Prime Minister for consideration and approval, Acting Project Director, Mr Bouachanh Ouansavanh reported.

Following consideration by a government committee, the Prime Minister’s Office gave notification that an authorisation letter from the Prime Minister had been forwarded to the Ministry of Planning and Investment on behalf of the government, mandating the signing of a Memorandum of Understanding with the Phongsavanh Group, he said.

After receiving approval, the two parties studied the terms of the MOU before agreeing to them and signing the document, said Mr Bouachanh.

The Phongsavanh Group aims to fulfil the seven major components stated in the MOU and the Terms of Reference (TOR) issued by the Department of Roads of the Ministry of Public Works and Transport.

This will ensure project implementation takes place in line with technical standards and other relevant legislation, and is completed within the agreed timeframe of 24 months, he mentioned.

Mr Bouachanh said that the Phongsavanh Group pledges to devote all its wisdom, energy, enthusiasm, as well as materials and funding, to the implementation of the project so that the MOU is fulfilled as agreed and meets the long-awaited aspirations of the Party, state and Lao people.

The company hopes that every central and local government body will provide the necessary support and assistance so that the success of the undertaking is ensured in line with the set objectives, he called.

The Phongsavanh Group is a renowned Lao conglomerate that has achieved success in many areas, from logistics to banking and financial services to the development of road networks.

This has been done in line with various strategic plans and successive national socio-economic development plans to enhance connectivity both domestically and internationally, Deputy Minister of Planning and Investment Dr Sthabandith said.

The Phongsavanh Group has been in business for many years and is known for its many achievements, diverse business experience, good reputation, steady growth, and the trust placed in it by the Party and government.

By Times Reporters
 (Latest Update June 3, 2025)