Laos News Thread

[AsianDragons]

Vice-Premier inspects Luang Prabang airport renovation
(KPL) Mr. Somsavat Lengsavad, Standing Deputy Prime Minister of the Lao PDR, on 21 June visited the northern province of Luang Prabang to inspect its ongoing airport renovation project.

Mr. Somsavat and his delegation received a warm welcome from Mr. Khampheng Saysompheng, Vice-Governor of Luang Prabang province, and a number of local senior officials.

At the construction site, Mr. Sackda Soulisack, owner of the Luang Prabang airport renovation project, briefed Mr. Somsavat and his party by saying that the renovation work started in April 2010 by a Chinese contractor.

The renovation is divided into phases: land clearing for the 2,300m runway construction which is scheduled to be completed by August, 2011. The second phase features the building of an additional 600m runway. The project will also cover the installation of electricity system, equipment for airport control station, terminal construction and some technical offices.

The renovation project to take 52 months will be able to support large aircrafts of international flights.

Source: KPL Lao News Agency
July 02, 2010

http://laovoices.com/2010/07/02/vice...rt-renovation/

[AsianDragons]

China to provide loan for Vientiane-China rail link

The Chinese government is providing a concessional loan for the building of a railway from Vientiane to the Laos-China border, the Ministry of Public Works and Transport has announced.

According to its latest report on railway development, the ministry has signed a memorandum of understanding with China's Ministry of Railways to build a rail link between Vientiane and Luang Prabang and on to Boten in Luang Namtha province in the north.

China will pay 70 percent of the cost and the rest will come from a joint Chinese-Lao venture responsible for investing in and operating the railway, according to the MOU.

The joint venture will generate income from railway service charges, which will be used to repay the Chinese loan.

The total construction cost will be unveiled following a survey, Lao National Railway Authority officials said, adding that a feasibility study was already under way.

Minister of Planning and Investment Sinlavong Khouthphaythoune said the Lao government would push for construction of the railway within the next five years.

He said the railway would enable Lao companies to transport goods more cheaply than by road, which was essential if they were to produce goods and deliver services at competitive prices.

“The main barrier to investment is the high cost of transportation,” he told Vientiane Times recently.

Minister of Public Works and Transport Sommath Pholsena told Lao National Assembly members the Vientiane-China railway would turn Laos from a landlocked country into a regional land link, adding that China wanted to use the railway to boost trade with Asean nations.

“China exports goods worth US$4,000 billion to Asean,” he told members at the mid-year session of the Lao National Assembly that ended last week. He said the railway would be economical if it could transport 10 percent of Chinese exports to the region.

Railway officials said the railway will connect to an existing railway running from Thailand, an important trading partner of China.

Thailand gave a loan and grant for the construction of the 3.5km railway from the Vientiane-Nong Khai Friendship Bridge to Thanalaeng train station about 25km outside Vientiane city centre.

Thailand will provide a similar package to help Laos build a 9km railway from Thanalaeng to Khamsavat village in central Vientiane.

The Chinese government will provide a loan to build a railway from Khamsavat village to the Vientiane Industrial Park at km 21, according to the ministry report.



By Ekaphone Phouthonesy
(Latest Update July 05, 2010)

http://www.vientianetimes.org.la/Fre...Free_China.htm

[AsianDragons]

Cambodia launches optical cable with Laos
Posted on: Mon, 05 Jul 2010 09:19:02 EDT

PHNOM PENH, Jul 05, 2010 (Xinhua via COMTEX) --
Cambodia on Monday officially launched the operation of the fiber-optical cable network with Laos, officials said the cable operation would help to develop telecommunications between the two countries and help boost economic development
among the countries in the Greater Mekong Sub- region.

The Cambodian Minister of Posts and Telecommunications So Khun said that the construction of the fiber-optical network in Cambodia section, under the soft loan of 17.5 million U.S. dollars from the EXIM Bank of China, had begun in December 2007 and finished in July 2009, with the length of 651 km along the No. 6 Road from Skun town to Siem Reap, and No. 7 Road from Kampong Cham to Trapeang Kreal of Stung Treng province bordering Laos.

The fiber optic cable network has formed as a backbone connecting Cambodia to the existing fiber optic cable in Laos, Thailand, China and Vietnam.

"This is a new achievement in telecommunications sector in Cambodia," said So Khun. "It would boost the development of trades and tourism among those GMS countries."

The GMS consists of six countries -- China, Myanmar, Vietnam, Laos, Thailand and Cambodia.

"The optical fiber network would absorb additional benefits, for instance, increasing national income, promoting development of ICT, exchanging new technology and information, transmitting the traffic -- voice, video, data, and internet, and all other telecommunicating services within and widely to the world with the acceptable price," he said.

Khamlouat Sidlakone, minister and president of National Authority of Posts and Telecommunications of Laos, said that the operation of the cable would improve economic development between the two neighboring countries.

"It would facilitate the development of economy and trades between the two nations and people of the GMS countries would take advantages of this project."

The GMS-IS (Information Superhighway) Network was initiated by China and the MOU was signed by the six nations in December 2004, in the hope of establishing a high capacity optical fiber backbone network and the expansion of telecommunications from cities and towns to rural areas for servicing the need of the community.

http://www.tradingmarkets.com/news/s...s-1022103.html

[AsianDragons]

SEZ to attract US$460 million more of investment

(KPL) The Savanh-Seno special economic zone is ambitious to attract more domestic and overseas investment worth more than US$ 465 million till 2013.


The plan is focusing on creating a favourable condition in investment for more than 50 companies, which are expected to create more than 6,000 jobs for local people.

This ambitious plan was disclosed by Mr Bouakham Sisoulath, Party Secretary of the Savanh-Seno special economic zone at the second Party meeting of the entity late last month.

More 25 companies with a registered investment of US$36 million have investing in the Savanh-Seno special economic zone. If compared to 2005′s, the figure shows a rise, mainly by 23 companies.

This was thanks to the close attention of the Party Unit of the Savanh-Seno special economic zone.

The infrastructure development of the Savanh-Seno special economic zone on 234 ha has largely been completed.

Most emerging companies invested in this zone are the Lao Tin Smelting Co. Ltd from Japan, which is the largest factory in the Savan Park followed by logistics service.

Source: KPL Lao News Agency
July 07, 2010

http://laovoices.com/2010/07/07/sez-...of-investment/

[AsianDragons]

Lao-Thai exhibition to boost trade value

Trade between Laos and Thailand has seen rapid growth recently, with the Lao and Thai governments aiming to increase annual bilateral trade value to about 49.5 trillion kip (US$6 billion) over the next three years.


“The two governments plan to reach about 24.7 trillion kip (US$3 billion) in trade this year alone,” said a representative from the Thai Export Promotion Department yesterday in Vientiane.

The present Lao-Thai Trade Exhibition at Lao-ITECC in Xaysettha district of Vientiane is to actively boost trade and investment cooperation between Laos and Thailand to progress towards trade targets, according to the exhibition organisers.

The exhibition is being held to mark both Vientiane's 450th anniversary as Lao capital and the 60th anniversary of Lao-Thai diplomatic relations, and will run until July 11.

The event features Lao and Thai products and services that have been specifically selected for their quality and high potential for developing sales in the two countries.

The objective is not just the sale of excellent products, but also matchmaking between businesses in the two countries and developing partnerships that will lead to trade increases in the future.

This year's event has 370 booths, including 40 for Lao products, a decrease on last year's 443 booths, which saw attendance by about 250,000 visitors and businesspeople from both countries.

The booth numbers have dropped because of stricter goods selection to promote quality.

Items on display from Lao com panies include processed agricultural products, industrial goods, cotton and silk textiles, garments, jewellery, woven bam boo and rattan products, food and drinks, furniture and interior design materials, handmade accessories and CDs of Lao music.

Thai products include food, drinks, fashion, household equipment and decorative items, jewellery, leather, beauty products, education equipment, electronics, car accessories, construction equipment, nursery and healthcare products.

A business matching meeting will draw a large number of officials and businesspeople from Laos and Thailand and is to be the main event at the exhibition, aiming to help build business partnerships, develop the skills of producers, improve products and marketing strategies and promote Lao products both domestically and abroad.

The exhibition will also feature free daily concerts starring bands and popular singers from both countries.

Other attractions will incl ude animal circus acts, free daily screenings of Lao and Thai movies, and free craft activities for children to make paper animals, silk and wire flowers, and soft toys.

The event has been organised by the Thai Export Promotion Department in cooperation with the Lao Promotion and Product Development Department.

The Lao-Thai trade exhibition ha s been organised annually since 2002.

http://www.vientianetimes.org.la/Fre...t/Free_Lao.htm

[AsianDragons]

Road, bridge linking Luang Prabang to Sayaboury take shape

(KPL) The construction of Road No 4 and a Park Khone-Thadeua bridge linking Luang Prabang to Sayaboury provinces is now five-percent progress after the construction work commenced late last year.

The construction of the US$18.8 million Road No 4 linking Xiengngeun district, Luang Prabang province, to Park Khone area in Sayaboury province and a bridge crossing over the Mekong River from Park Khone to Thadeua in the neighbouring Sayaboury province, which is being carried out by a company from the Republic of Korea.

The majority of the construction cost of the road and bridge, accounting for 80%, is covered by a loan from the Republic of Korea to Lao Government. The rest stems from the Lao Government’s allocations.

Road No 4 is 58 km long and 7 m wide while the bridge is 620-m long and 10.5-m wide.

“The construction is now making a progress of 5 percent of the entire work,” said Mr Sisouk Siphanith, Deputy Head of Road No 4 and Park Khone and Thadeua Bridge Construction linking Luang Prabang to Sayaboury provinces.

This project will take 24 months, which is expected to complete in mid-2013, he continued.

Upon completion, the facilities will support more goods transport, communication between the two neighbouring provinces of Sayaboury and Luang Prabang, which will have a positive effect on the economic growth.

Source: KPL Lao News Agency
July 07, 2010

http://laovoices.com/2010/07/07/road...ry-take-shape/

[AsianDragons]

Sikhay-Tardthong road built by 60 per cent

(KPL) The improvement of a road stretch between Sikhay intersection and Tardthong junction has been completed by 60 per cent.


The basic infrastructure development is a priority of basic infrastructure development of Vientiane Capital for 2005-2010 period.

The road stretch, which is four km long, is being developed to a four-lane surface. Drainage and street lights are being constructed and installed along the road stretch. The project costs USD 7.2 million.

Project Manager, Mr. Soudchay Douangdala, said last week that the construction of the reinforced concrete road would link together the villages of Sikhay, Sibounheuang Tha, Sibounheuang Thong, Sisomsuen, Kaoliao, Danekham, Nonekeo and Tardthong. The construction began in May 2009.

“We expect that the construction will be completed by the end of this year ahead of the celebration of the 450th anniversary of Vientiane as the national capital city, which will be taking place in mid November this year.”

Source: KPL Lao News Agency
July 07, 2010

http://laovoices.com/2010/07/07/sikh...y-60-per-cent/

[AsianDragons]

Preparation for Vientiane’s 450th anniversary celebration in full swing

(KPL) Vientiane Capital is on track in approaching the celebration of Vientiane’s 450th anniversary, said Mr Sombath Yialiheu, Vientiane Mayor at a meeting of the Propaganda and Training Board of the Party Central Committee on 7 July.



The celebration of Vientiane’s 450th anniversary will be held from 15 to 21 November.

Attending the meeting were Mr. Phandouangchith Vongsa, Head of the Propaganda and Training Board of the Party Central Committee, Party members, 300 representatives from ministries, Vientiane Capital, Borikhamsay, Khammouane and Vientiane provinces.

The objective of the meeting under the theme “approaching the celebration of Vientiane’s 450th anniversary” was designed to prepare and create an awareness campaign to officials and people at all levels nationwide on the importance of the celebration including history of Vientiane, ancestor’s victory and the heroic fight for independence.

At the meeting, Mayor Sombath has also highlighted four main objectives of the celebration including the ancient era of Vientiane town dating back before 1560 till today (1560-2010), the vision in development of Vientiane Capital till 2030, and 2011-2015 development plan.

The celebration ceremony of Vientiane’s 450th anniversary has heeded to the advice and leadership of Party and Government, and Vientiane Capital.

In order to welcome the upcoming celebration of Vientiane’s 450th anniversary, Vientiane Capital has approved 21 infrastructure development projects which are going on in full swing. Some of them have been completed.

Source: KPL Lao News Agency
July 09, 2010

http://laovoices.com/2010/07/09/prep...in-full-swing/

[AsianDragons]

Laos grants 156 ha to Japanese company for medicinal plant cultivation

(KPL) The government of the Lao PDR recently granted a 30-year concession of 156 hectares of land in Lao-ngam district of Saravane province to the Tsumara Co., Ltd. of Japan for the plantation of medicinal plants.

A signing ceremony of an agreement on land concession between the National Land Management Authority and the Lao Tsumura Co., LTD was held in Vientiane on 6 June between Mr. Akhom Tounalom, Deputy Minister to the Prime Minister’s Office who is also deputy head of the National Land Management Authority and a representative of the Lao Tsumura Co., Ltd.

The concessionary fee will be computed in line with the President Decree no. 02 dated 18 November, 2009 in which the company will pay US$ 15 per hectare per year and one more dollar will be added on every five years.

Source: KPL Lao News Agency
July 09, 2010

opps close the site before sitngs

[AsianDragons]

Laos facing quality issues with solar PV components
Laos is facing component quality issues with its small-scale solar photovoltaic (PV) systems installed three years ago to about 2,000 rural households.


While the solar panels have still been working fine, the control boxes and batteries have not been functioning properly, says Hatsady Sisoulath, deputy director general at the department of electricity with the ministry of energy and mines.

“The quality is very bad. The people are complaining,” Sisoulath tells Recharge.

He says that the solar systems were acquired from China and the stated quality of the product was in accordance to specifications, which are meant to give a lifespan of about 20 years.

Sisoulath declines to name the Chinese manufacturers.

The rural solar project was launched in 2007 with funding aids from the World Bank, allowing the Laotian government to subsidise half of the installation cost while the households will bear the remaining half.

Each solar PV system is capable of producing 20-50 watt peak (Wp) of electricity under full sunlight condition, and costs about $300 to install.

The Laotian government aims to equip another 10,000 rural households with the solar PV systems and to achieve 500MW of solar power capacity by the end of this year.

The solar PV systems will still be sourced from China due to its price competitiveness, according to Sisoulath.

By 2020, it hopes to install solar PV systems to 100,000 rural households.

Neighbouring Cambodia, which has a similar rural solar household programme aided by the World Bank, only managed to install the system for about 1,000 houses.

http://www.rechargenews.com/energy/s...icle220567.ece

[AsianDragons]

Phu Cua int’l cross border check-point inaugurated


Vietnam’s Central Highland province of Kon Tum on July 9 held an inauguration ceremony for a cross-border check-point at the Phu Cua International Border Gate of Laos.
The Phu Cua International Border Gate has been built since 2009 at a cost of over VND29.5 billion funded by the Vietnamese government to Laos as a non-refundable aid.

The work will contribute to strengthening the traditional friendship and comprehensive cooperation between the two countries, as well as promoting the development of economy, trade, tourism and services between Kon Tum and Attapeu provinces of Laos, and among provinces in the development triangle of Vietnam-Laos-Cambodia.

Earlier, the Bo Y-Phu Cua border gate was upgraded into international border gate on January 18, 2008.

http://english.vovnews.vn/Home/Phu-C...107/117335.vov

[hakz2007]

Laos hydroelectric dam easing poverty

WASHINGTON, July 16 (UPI) -- Revenue from a hydroelectric dam in Laos is making its way to the development of social and federal programs in the country, international groups say.

The World Bank and the Asian Development Bank announced in a joint report that the first $600,000 generated from the Nam Theun 2 plant in Laos is funding education, health, rural roads, electricity and environmental programs in the country.

The joint report said Laos over a 25-year period can expect to generate $2 billion from the project.

"With close to three quarters of the population of Laos still living on less than $2 a day, the money generated by NT2 is providing a significant boost to the country's economy and helping improve people's lives," said John Roome, a World Bank director for the region.

Financial backers of the $1.5 billion project expressed concern over the environmental impact of the project, one of the largest hydroelectric dams in the region.

Apart from an increase in per-capita income, the joint report said the environmental impact from the project was anticipated and appropriate mitigation efforts are in place.

The power station will supply 95 percent of its electricity to the grids in Thailand and the remaining 5 percent to Laos. The 5 percent is enough to meet 20 percent of the annual energy demand in Laos.

http://www.upi.com/Science_News/Reso...7281279293347/

[AsianDragons]

Lao stock market to trade in kip only

The government will allow Lao kip only to be used for trading on the forthcoming Lao stock exchange amid widespread use of foreign currencies in the country.


The headquarters for Laos' first stock market are currently under construction.
Currently transactions by traders and businesses across the country are frequently made in foreign currencies, despite recent efforts by the Bank of the Lao PDR to promote wider use of the kip by quoting prices in the national currency.

The bank’s governor, Mr Phouphet Khamphounvong, told the Vientiane Times on Wednesday that the kip will be used for buying and selling shares on the stock market.

The use of the national currency is in line with the government’s policy to promote the use of the kip. The Lao currency has been strengthening against the US dollar and Thai baht since devaluing dramatically in 1997 during the Asian financial crisis.

In January 2006 there was 10,772 kip to the US dollar and 264 kip to the Thai baht, but now US$1 is worth 8,224 kip and 1 baht is worth 255 kip, according to the exchange rates of the Banque pour le Commerce Exterieur Lao (BCEL).

Mr Phouphet, who is also Vice President of the Lao Security Exchange, said that if foreign investors bring in the capital to buy shares they will have to change their money into kip.

The establishment of the first stock market in Laos is a joint venture between the Lao government and Korea Stock Exchange (KRX).

Mr Phouphet said that the joint venture company will open on October 10, 2010, but the stock market will open for transactions in January 2011.

An official from the Security Market Establishment Committee confirmed that the use of kip for trading stocks should not pose any problems, but if more foreign currency flows into the country it will make the kip stronger, which will cause problems for the export sector.

However, President of the Security Market Establishment Committee, Mr Dethphouvang Moularat warned: “We should be careful about withdrawing more foreign currencies out of the country in case investors sell off all their stock due to falling share prices, as a result of a stock market crisis.”

The country needs to have enough foreign reserves to bail itself out if there is a massive fall in share prices. Currently the foreign reserve is enough to cover imports for six months.

However, the committee will undertake some measures to manage fluctuations on the stock market by issuing some legal documents, according to Mr Dethphouvang.

Electricite du Laos and Banque pour le Commerce Exterieur Lao will be the first state enterprises to be listed on the stock market.

The central bank, on behalf of the government, reached a joint venture agreement with KRX on the stock market’s establishment in July 2009 in Luang Prabang. The government has a 51 percent share and the other 49 percent belongs to the KRX.

Located on Kamphaeng-Meuang road, Setthathirath district, Vientiane the stock market’s headquarters is currently under construction, and is 60 percent complete.

The Lao Stock Market is expected to provide multiple benefits to the national economy and boost production in the country.

Source: Vientiane Times
July 27, 2010

http://laovoices.com/2010/07/27/lao-...e-in-kip-only/

[AsianDragons]

Construction of third Lao-Thai bridge on track

Recent rainfalls have not disrupted construction of the third Lao-Thai Friendship Bridge because the most important part of the structure has already been completed, said the project’s coordinator.

Mr Xaysana Fasavath said on Wednesday that the bridge links the central Lao province of Khammuan to Nakhon Phanom province in Thailand and construction is running smoothly despite the onset of the wet season.

“We are working as normal and the project is now 50 complete, which is 13 percent ahead of schedule. An immigration building is now mostly complete, with just the roof remaining to be constructed,” he said.

“We are now also working on the superstructure of the bridge and welding, which we will suspend to work on paving if rain occurs.”

Workers are also preparing to lay concrete if the skies stay clear for a few days, he said.

Mr Xaysana said concrete has already been laid from the edge of the bridge to the immigration building and a further 500 metres of road will be paved to connect the bridge to Road No 13 South.

The Thai side is currently constructing its immigration facilities, he said.

The bridge is scheduled for completion in November 2011, after work began in May 2009.

A groundbreaking ceremony took place in March 2009 on both sides of the river. The ceremony was led by Lao Vice President Bounnhang Vorachit and Her Royal Highness Princess Mahachakri Sirindhorn of Thailand.

Thailand has invested more than 1.7 billion baht in the construction of the bridge.

In Laos, the bridge is located near Veuntai village in Thakhek district, 13km from the district centre. In Thailand, the bridge is set in Nakhon Phanom district’s Hom village.

The bridge will be built with pre-stressed concrete box girders 13m in width. There will be two lanes for traffic, each 3.5m wide, and two footpaths, each 1m wide. It will be built in the same style as the Lao-Thai Mekong Friendship Bridge linking Vientiane with Nong Khai province, Thailand.

The first Lao-Thai Friendship Bridge over the Mekong, linking Vientiane and Nong Khai, opened in 1994. The second Mekong bridge, linking Savannakhet province in Laos and Mukdahan province in Thailand, opened in 2007.

Source: Vientiane Times
By Panyasith Thammavongsa
July 31, 2010

http://laovoices.com/2010/08/01/cons...ge-on-track-2/

[AsianDragons]

Laos, Burma links approved

Bangkokpost Published: 3/08/2010 at 12:00 AM


The Thai government approved infrastructure investment projects yesterday in Laos and Burma worth a combined 4.2 billion baht.

The first project is the two-lane R11 Lao road construction linking Baan Thad Thong of Nong Khai province with Baan Namsang of Saengthong city in Laos covering 56 kilometres. This project is valued 1.39 billion baht with construction from 2011-2014.

Tharadol Piempongsan, deputy secretary to Prime Minister Abhisit Vejjajiva, said the road will be built along the Khong River in Laos to enhance tourism between the countries.

The second project is an extension of 7.5 km of railway from Tha Nalaeng in Laos to Vientiane worth 1.65 billion baht. Rail already links Thailand's Nong Khai province with Tha Nalaeng. The extension is planned for construction from 2011 to 2014. This project will benefit tourism and transportation between the two countries.

Mr Tharadol said the Thai government will grant 30% of the amount required for these projects with the remainder allocated through soft loans carrying an annual lending rate of 1.5% for 30 years.

In a related development, a committee to develop economic co-operation in neighbouring countries chaired by Deputy Prime Minister Trairong Suwankhiri agreed yesterday to grant 1.16 billion baht to improve the existing 18-km road from Myawaddy-Tanintharyi and build a new 28.6-km road from Tanintharyi to Kaukarek district in Pa-an, the capital of Kayin State. These projects will take place from 2011-2013.

Mr Tharadol said the project will boost border trade between Thailand and Burma, particularly through the Mae Sot border checkpoint that generated trade of 25 billion baht last year.

http://www.skyscrapercity.com/showth...294511&page=32

from thai forum posted by napoleon

[AsianDragons]

The China Banking Regulatory Commission (CBRC) has approved a request by Fudian Bank, a commercial bank based in southwest China's Yunnan Province, to establish a representative office in Laos, making the bank the first local commercial bank to set up business outside China, China News Service reported Thursday.

Fudian Bank has played an important role in past financial dealings between China's southwestern regions and Southeast Asia. It also plans to serve as an agency to provide financial services for banks of neighboring Greater Mekong Subregions (GMS) such as Laos, Myanmar and Vietnam. Its establishment in Laos has landmark significance for building Yunnan into a bridgehead for China to open southwest, the report said.

The former Fudian Bank was founded in 1911. It once had the task of issuing currency, implementing monetary policy and controlling foreign exchange on behalf of the government of Yunnan. After the founding of the People's Republic of China, it was taken over by the People's Bank of China. In 2007, it was re-founded and became the first provincial-level joint-stock commercial bank of Yunnan.



http://english.cri.cn/6826/2010/08/05/1901s586977.htm

[AsianDragons]

Aug 16, 2010
$1.2b power plant in Laos
SEOUL - A CONSORTIUM of South Korean and Thai firms signed an agreement on Monday to build a US$900 million (S$1.2 billion) hydroelectric power plant in Laos, company officials said.

The consortium involves Thai power supplier Ratchaburi Electricity Generating Holding and two South Korean firms, SK Construction and Korea Western Power.

SK Construction said a memorandum of understanding was signed between the consortium and the Electricity Generating Authority of Thailand (EGAT), which will sell electricity from the plant across Thailand.

The plant, capable of generating up to 390 megawatts, will be located at Senamnoi, in southern Laos.

SK Construction is responsible for financing and building the plant, while Korea Western Power will maintain it.

Construction will begin in 2013, an SK Construction spokesman said, adding the consortium would operate the plant for 27 years. 'We hope the new project will help create new jobs and eventually expand much-needed energy infrastructure in Laos,' he said. -- AFP

http://www.straitstimes.com/Breaking...ry_566970.html

[AsianDragons]

Malaysian firm to build dam on Mekong tributary

Vientiane, Laos - A Malaysian firm has been granted permission to build a 130-megawatt dam in north-western Laos on a tributary of the Mekong River, state media reports said Monday.

Malaysia's Asia Pacific Business Lin Snd Bhd Co Ltd (AP Bizlink) last week signed an agreement with Laos' Ministry of Planning and Investment to construct the dam in Luang Namtha and Bokeo provinces over the next four years, the Vientiane Times reported.

The 145-metre-tall dam would create a 2,825-square-kilometre catchment area on the Nam Pha River, a tributary of the Mekong, South-East Asia's longest waterway, which passes through southern China, Laos, Myanmar, Thailand, Cambodia and Vietnam.

AP Bizlink chairman Zakaria bin Dato Ahmad said the project would contribute to meeting the electricity demands of northern Laos and attract foreign investment to the area.

No details were provided on the cost of the dam nor the Malaysian firm's plans for conducting a social-environmental impact study on the project area or on the Mekong.

China has already built four large hydroelectric dams on the upper Mekong, but none have yet been built on the South-East Asian segments of the river.

The Mekong River Commission - of which Cambodia, Laos, Thailand and Vietnam are members - has warned that all dams on the middle and lower Mekong River would have an adverse impact on fisheries, which provide an estimated 2 billion dollars each year in revenues for people living off the river.

'Current fish passage technology would not be effective in maintaining the migration of the large number and diverse fish species found in the Mekong,' the commission concluded in a study conducted by a group of scientists in 2008.

'In view of this conclusion and the assessment of the value of the Mekong's fisheries, the group concluded that dams on the mainstream in the middle and lower part of the Mekong will have a major impact on the fisheries and serious economic and social implications,' the commission warned.

Less research has been done on the impact of dams on tributaries of the Mekong. Communist Laos, which has said it aspires to be the 'battery of South-East Asia,' plans to build about 20 hydropower plants on its rivers by 2020.

A mountainous country rich in water resources, Laos currently has 14 hydropower plants with a combined capacity of 2,540 megawatts, much of which is exported to neighbouring Thailand.

http://www.monstersandcritics.com/ne...kong-tributary

[AsianDragons]

Lao-Viet trade continues to prosper

The value of bilateral trade between Laos and Vietnam has seen a major increase this fiscal year thanks to closer economic cooperation between the two nations.

According to a report from the Ministry of Industry and Commerce, two-way trade value between the neighbouring countries reached about US$450 million over the past six months of the 2009-10 fiscal year thanks to tightened economic and trade cooperation.

The Lao and Vietnamese governments plan to reach bilateral trade value of about US$1 billion this year and US$2 billion by 2015 as part of efforts to implement comprehensive cooperation policies.

Deputy Minister of Industry and Commerce Ms Khemmani Pholsena held talks with her Vietnamese counterpart Mr Nguyen Thanh Bien in Vientiane in June, aiming to boost trade cooperation between the two nations and ensure targets are met. The two governments plan to boost the value of their bilateral trade by continuing to impose the current preferential import-export taxes for 2011.

The two countries will collaborate to organise trade fairs in several northern and southern Lao provinces and study the possibility of signing a free trade area agreement, hoping to provide more opportunities for Lao and Vietnamese businesses and traders.

The two governments are also working together to develop plans for a Vietnam-Laos border market network, a scheme aimed at providing greater opportunities for people living in shared border areas to exchange goods and run joint venture businesses.

At present, Laos mainly imports petroleum, steel and iron, apparel and footwear from Vietnam, while exporting agricultural products, mining commodities and timber to Vietnam.

According to a report from the Department of Import and Export, Laos exported about US$152 million worth of goods to Vietnam in the 2008-09 fiscal year, while importing about US$139 million worth of goods from Vietnam.

Economists believe the rising level of Vietnamese investment in Laos will further boost bilateral trade between the two nations in the coming years.

Vietnamese investments in Laos have been increasing over the past few years, particularly in industrial tree plantations, hydropower plants, hotels and the mining sector.

According to a report from the Ministry of Planning and Investment, the value of Vietnamese investment in Laos between 2000 and 2009 was about US$2 billion, making the nation the third largest foreign investor in Laos after Thailand and China. Vietnamese investment value in 2010 has reached about US$49 million.

Vietnamese businesspeople have urged the Lao government to improve investment services after experiencing slow approval for proposed investment projects. They also want the government to provide them with clearer information relating to investment policies and market conditions in the country. To promote comprehenship cooperation the leaders of the two countries have regularly visited each other and today the President of Vietnam Mr Nguyen Minh Triet commenced an official visit to Laos.

Source: Vientiane Times
August 24, 2010

http://laovoices.com/2010/08/24/lao-...es-to-prosper/

[AsianDragons]

Lao garment manufacturers benefit from rising Chinese labour costs

The Lao garment industry is receiving more orders from international trading companies as the cost of Chinese labour continues to rise, according to officials from the Lao Garment Industry Association.

Chinese labour costs in the garment industry have reportedly increased by 30 percent, causing international trading firms to order their merchandise from countries with lower production costs such as Laos, Thailand and Vietnam.

“Although there has not been any new investment in the Lao garment industry this year we are beginning to receive more orders as a result of the rising labour costs in neighbouring countries,” said one association official, adding that orders have risen by 15 percent over the past few months.

The President of the Lao Garment Industry Association, Mr Onesy Boutsivongsakd, confirmed yesterday that customers of Chinese garment manufacturers had started to order more products from Laos in the face of rising costs in China.

Yet with a shortage of labour in the Lao garment industry, coping with this sharp rise in business could become a major challenge, he said

“We will need about 6,000 additional workers to increase output,” he said, pointing out that many people do not actually want to work in the factories due to rising inflation.

He said that the Lao garment firms would not be able to increase pay for workers as this would in turn push up product prices and put the Lao garment industry at a disadvantage on the international stage.

Mr Onesy said that wages for Lao workers were already high compared with those in Vietnam, Cambodia and Bangladesh, and for this reason industry employers would not be able to offer a pay rise.

He has urged the government to address rising inflation, one of the main issues preventing Lao people from working in the garment industry, which would offer them a wage of around 560,000 kip (US$70) per month.

“Despite the growing value of the kip against the US dollar and Thai baht, the price of rice and other foods has risen steeply,” he said

Trade officials say that it is hard for authorities to control the price of food as most is imported, and thus one of the best ways to drive down prices would be to encourage domestic production.

According to a report from the association, Laos’ export value of clothes over the past six months was US$78 million – a 1 percent drop on the same period of last year.

There are around 100 garment factories currently operating in Laos, employing more than 20,000 workers nationwide. The sector is a principal generator of employment for the people of Laos.

Source: Vientiane Times
August 24, 2010

http://laovoices.com/2010/08/24/lao-...-labour-costs/