Korean investment in land development is expected to pour in following a deal between Chinese developers and a Korean real estate firm.
Korean real estate investment firm D&C Mineun held a week-long promotional seminar in Vientiane from 13 to 16 November where investors could discuss business opportunities within the That Luang Lake Special Economic Zone.
D&C Mineun, a Korean real estate investment firm with headquarters in Shanghai, entered into a business partnership with Shanghai-based Wanfeng Property last month to assist the developer in attracting Korean real estate investment.
Wanfeng Property has invested over USD 391 million in infrastructure at the That Luang Lake Special Economic Zone, building roads, green areas, hotels, and commercial buildings.
Senior officials from the Lao government as well as 60 business leaders attended the seminar held by D&C Mineun, according to the Korea Herald.
The event was attended by Sinlavong Khoutphaythoune, President of the Lao Front for National Development, and Deputy Prime Minister Kikeo Khaykhamphithoune. It was also witnessed by Korea’s Jungheung Group Vice Chairman, Jung Won-ju.
Korean investors felt positive about the impact the upcoming Laos-China Railway would have on the economy of Laos, saying it would reduce transport time and costs for logistics and people, removing a major hurdle for the manufacturing sector.
“The direct railway will lay the foundation for economic development in the country, similar to how the Gyeongbu Expressway became an economic growth engine for Korea. We are seriously considering investing in the project,” Jung, the Jungheung Group vice-chairman was quoted as saying.
Tax breaks and other incentives have been promised by the government of Laos for investors in the development project, and those investing more than USD 100,000 will be granted permanent residency in Laos.
Investors will be exempt from the real estate tax, property tax, and possession tax while receiving a 50 percent discount on value-added tax (VAT). Meanwhile, income tax will be exempted for the first four years.
Similarly, import duties on equipment, materials, and vehicles will be wived, while profit made in Laos can be freely moved outside the country.
Upon completion, the SEZ project is to encompass residential areas, public parks and green spaces, a lake, a hospital, an education center, restaurants, a sporting complex, and a commercial center.