Laos - ຊະຢ່າງເພດສະຖານະສາມພັກ
Vientiane Saysettha Development Zone (SCDZ) in Laos is a state-level cooperative project jointly initiated by the governments of China and Laos. It is recognized as a National Special Economic Zone of Laos and a National Overseas Economic & Trade Cooperation Zone of China. SCDZ is considered a successful project under the “One Belt and One Road” strategic planning in China and receives significant attention and support from both countries.
Covering an area of 11.5 square kilometers, SCDZ is situated 14 km northeast of downtown Vientiane, the capital of Laos. It is located in the core area of the New City of Vientiane. The development zone benefits from its strategic location, with No. 13 National Highways to the north and the 450th Anniversary Avenue to the south. It is also 14 km from the Lao-Thai Friendship Bridge and 19 km from Wattay International Airport.
Operational Structure of Saysetha Development Zone
The Lao-China Joint Venture Investment Co., Ltd (LCC), funded by Yunnan Provincial Overseas Investment Co., Ltd. (YOIC) and the Vientiane Municipal Government, operates SCDZ. YOIC is an overseas investment platform of Yunnan Construction Investment Holding Group (YCIH). This joint venture was established on October 18, 2010.
SCDZ is developed in three phases. Phase I primarily focuses on industry and covers an area of 4 square kilometers. Phase II and Phase III emphasize trade, tourism, residence, and the development of the new Vientiane sub-center.
China connection
In recent years, SCDZ has become a crucial partner for Chinese enterprises investing in Laos. With an increase in settled enterprises from 39 in late 2017 to 107 in early 2022, it has become China’s only overseas economic and trade cooperation zone in Laos and the first state-level comprehensive development zone in the country. Approximately 73.62% of the settled enterprises are Chinese-funded, while others come from Laos, Thailand, Japan, the United States, Malaysia, and Singapore.
These enterprises operate in various sectors, including warehousing and logistics, energy and chemical industry, electronic product manufacturing, biomedicine, agricultural product processing, textile processing, headquarters economy, business services, and the health and wellness industry.
Future Prospects and Investment Projects
The completion of the first-phase project, the Vientiane New Town Demonstration Zone, provides comprehensive support services for settled enterprises. Once all enterprises are operational, their annual output value is expected to exceed $1.8 billion, creating over 10,000 local jobs.
The zone’s petrochemical refinery site, with a capacity of 3 million tons per year, is Laos’ first and only petrochemical project. It fills the gap in the country’s petrochemical industry and reduces reliance on imports for refined oil.
Yunnan Overseas Investment Co., Ltd., the developer of the zone, plans to shape SCDZ into a sub-center of Vientiane within 7-10 years.
Investment Opportunities at Saysetha Development Zone
SCDZ offers investment opportunities in various sectors, including agricultural products, wood manufacturing, light industry, tourism services, electric appliance manufacturing, machinery industry, and new energy.
Covering an area of 11.5 square kilometers, the development zone is located 14 km away from the northeast part of downtown Vientiane, the capital of Laos. It is in the core area of New City of Vientiane. The golden location of SCDZ lies in the fact that to its north is No. 13 National Highways and to its south is the 450th Anniversary Avenue. Furthermore, it is 14 km from Lao-Thai Friendship Bridge and 19 km away from Wattay International Airport.