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Saturday, July 20, 2024

Laos Attracts Foreign Investment of Over USD 800 Million in Khammouane

This Week

The Asia-Potash International Intelligent Industrial Park in Khammouane province has been a significant investment for the country, with an investment cooperation memorandum worth USD 835 million signed in Guangzhou, China.

The event, sponsored by the Ministry of Industry and Commerce and the Khammouane Provincial Government, showcased the park’s potential as a hub for new development and the country’s commitment to development. Over 100 Chinese enterprises, investors, and financial institutions attended the event, which resulted in the signing of 10 projects worth LAK 15.1 trillion. The total output value of the projects is expected to exceed USD 2 billion.

The event was a practical action to stabilize the economy, attract foreign investment, increase foreign exchange, and replace imports. The Lao government has seized the opportunity of the overseas layout of Chinese enterprises and aims to link up with the global market and stimulate Laos’ economic development. The province is committed to providing convenience and support for these endeavors, and the government is committed to fostering a more open and inclusive investment and business environment.

The province’s Governor, Mr. Vanhxay Phongsavanh, emphasized the importance of the park’s core advantages, including energy, minerals, agriculture, forestry, services, and tourism. The park is expected to become an outstanding model for the development of a comprehensive mining industry, contributing to national fiscal revenue generation, local development, and reputation enhancement.

Laos also extends its heartfelt gratitude to the Lao government on behalf of Asia-Potash International, stating that the park has become an international potash fertilizer enterprise with the largest amount of potash resources in Asia, the largest scale in Southeast Asia, and the fastest production speed in the world.

The industrial park project, a landmark initiative under the framework of China-Laos government-enterprise cooperation, integrates industrialization, urbanization, and modern agriculture building, and encourages the fast growth of the service sector. It significantly improves firms’ sustainable development capacities and encourages Laos to build an industrial pattern that decreases imports while generating foreign cash through exports.

Asia-Potash International is sure that it can inject fresh energy into the China-Laos collaboration by investing in fast-growing agricultural land in Laos. The Asia-Potash International Intelligent Industrial Park, based in Khammouane, leverages its unique advantages in resources, energy, market access, and cost-effectiveness, according to Mr. Tong Yongheng, Deputy General Manager of Asia-Potash International and Head of the Laos Potash Fertilizer Base.

The industrial clustering development concept would provide a high synergistic effect among diverse industries. The park is divided into three sections: a potash fertilizer industrial park, a non-potash industrial park, and an Asia-Potash town. At present, the construction of Phase I ionic membrane chlorine-alkali construction project with an annual output of 30,000 tons is progressing rapidly and is expected to be completed by the end of September this year. It spans 2,000 hectares and is anticipated to draw a total investment of USD 4.31 billion.

It is now in the investment marketing stage. The medium-term project construction is planned to be finished by the end of 2026, and a salt chemical industry of the size of 5 million tons of potash fertilizer will be developed; all projects are projected to be completed by the end of 2028.

The chlorine-alkali project at the Asia-Potash International Intelligent Industrial Park, according to Mr. Cao Lixiang, Chairman of Hengguang Technology, is their first foreign investment project.

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