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Popular Lao Enterprise Still Involved in Illicit Activity With Public Funds

fraud
fraud

PS Lao Enterprise, a company that produces food items such as meat, fish, rice, drinking water and imports various grocery and consumer products in Laos, has been in hot water for some time now, as it has continuously failed to issue full dividends to its shareholders as originally promised.

The Bank of the Lao PDR has repeatedly warned the public to be aware of illegal fundraising by PS Lao Enterprise, claiming the company has adopted various strategies to mobilize money from people illegally. The company has now been instructed by the bank to return all funds to investors before July 7th or be reprimanded. 

 As previously reported by The Laotian Times, despite being warned and fined to cease unlawful activities by authorities, the enterprise continues to dupe shareholders by luring them with outrageously high interest rates.

The central bank’s office issued a notice on Friday, urging members of the public not to fall victim to such illegal tactics.

As the company was established in 2012 as PS-Agriculture and Industry Development Import-Export Co, Ltd., a limited company, it has been prohibited to mobilize deposits or raise funds.

Recently, the company was involved in another business scandal where it had failed to issue full dividends to its depositors as pledged. The company had originally offered a monthly interest rate as high as six percent but soon after decreased it to 4.8 percent, and then even further to just 2-2.8 percent.

The company’s President, Ms Souknaly Thepsymeuang, recently announced at a press conference that the company was pleased to return the money to the many depositors of the enterprise, also claiming that her company had formerly stopped accepting deposits, even offering customers two options on how to withdraw their capital.

The first option required business partners or depositors to officially inform the company of their intention to withdraw the money, with the withdrawal to be made three months later.

The second option encouraged business partners to market the company’s products themselves in accordance with the amount they deposited.

Ms Souknaly has confirmed that several depositors have withdrawn their capital after the government intervened in the company’s illegal operation.

Despite Ms Souknaly’s admission that her company has stopped accepting further deposits, the central bank stated in its latest notice that the company has continuously changed its tactics over time to continue moving capital illegally.

The bank has stated that all the financial issues or debts the company owed to its depositors, shall fall under the company’s sole responsibility.

The bank has recommended for depositors who were swindled by the company to approach local courts or police officers in charge of economic affairs to seek further assistance and address their issues.

The company currently has almost 180,000 deposits valued at 853 billion kip.

After 107 Years, Mahosot Hospital Will Get a New Building

mahosot-old
mahosot-old

Though Vientiane is known and loved for its charming, centuries-old colonial buildings preserved throughout the city, the old Mahosot Hospital is one historical building that has been in need of some modern upgrades.

The first hospital in Laos, Mahosot was established in 1910 by French doctors. It has 31 wards with 450 beds, and employs more 700 medical staff, all of whom are Lao nationals.

In an effort to finally modernize the outdated hospital, Chinese architects are collecting data from Mahosot Hospital this week, as they begin to design and plan for the construction of a brand new medical facility.

The assistance for construction at Mahosot comes by way of one of nine cooperation agreements signed in Beijing, between President Bounnhang Vorachit and his Chinese counterpart, Xi Jinping.

Though the cost of the project is still being calculated, the five-year project is slated to begin this year, with construction scheduled to be completed by 2022. The renovated hospital will be  4 or 5 stories tall, and consist of 600 beds;  replacing the existing 450-bed hospital building.

In addition to building a new structure, the Chinese government will also donate new modern medical equipment to all wards at the hospital.

Director General of Mahosot Hospital, Associate Professor Dr Bounthaphany Bounxouei stated,  “When the project is completed, it will become the new face for central hospitals in Laos. The hospital will be upgraded to international standards. We hope that it will attract more people to receive treatment at the hospital. It will also reduce people crossing borders to seek medical treatment in neighboring countries.”

The director general believes that even though the doctors and nurses that are currently employed by Mahosot are experienced and capable, some having been trained abroad, they are unable to effectively do their job due to outdated equipment.

With the new building and modern machinery envisioned, doctors and nurses will no longer be hindered by their lack of  access to the proper equipment. The modern equipment will consist of diagnostics, radiology and magnetic resonance imaging.

To allow the hospital to remain open during renovation, construction will begin from the heart centre, then will move on to the old Mother and Child Hospital Building,  then to the International Clinic and then finally, to the lung disease building.

Though the hospital will continue to collaborate with doctors from other countries for continuous development, the Chinese health sector will be Mahosot’s main cooperator.

The hospital will continue promoting the free-of-charge policy for the underprivileged to ensure that all people have access to standard medical treatment, and will continue upgrading curative skills on endoscopic surgery, heart, hypertension and cancer.

Beyond upgrading the facility and equipment itself, hospital officials have also highlighted that improved staff services will be a focal point for the new and improved Mahosot. The hospital will continue to develop the skills that  doctors and nurses need to ensure that people who are seeking treatment at the hospital are received kindly and respectfully.

The hospital also plans to run a strategy named, ‘five good services’ and ‘one satisfaction’. These five good services focuses on reception, cleanliness, comfort, diagnosis and treatment. The ‘one satisfaction’ is aimed at  how to create satisfactory service to all patients.

Currently, the hospital admits an estimated 800-1,000 people daily in the outpatient ward, with an estimated 200-300 patients staying overnight for more severe cases.

Linfox Expands Operations into Laos

linfox
linfox

Lao Logistics Group has officially signed a Joint Venture agreement with Linfox, a Melbourne-based transport company, making it the first foreign logistics company to establish operations in Laos.

Linfox is Australia’s largest privately owned logistics company that has rapidly expanded into Asian and New Zealand markets. The company currently has branches in Australia, New Zealand, Indonesia, Thailand, Malaysia, Vietnam, China, Hong Kong and India.

In partnership with local businesses and people, the agreement allows Linfox to provide transport services across Laos.

Ms Gabby Costigan, CEO of Linfox International Group, stated that the partnership provides Linfox with a foothold in the emerging economies of the Mekong Delta region.

“Expansion into the greater Mekong Delta countries of Laos, Myanmar, Vietnam and Cambodia is a key objective of Linfox’s business strategy,” stated Ms Costigan. Adding,  “We see great potential in this region, not only for Linfox, but for the local communities and economies.”

“Laos’s position in relation to its neighbors offers enormous potential as a land-link and location to build further trade connections internationally.

“It will also generate real income for local business and promote increased investment in the region through the provision of efficient and cost-effective logistics services.”

This partnership will open up new opportunities for Laos to grow relationships with its Association of Southeast Asian Nations (ASEAN) trade partners.

“We believe this JV is a positive step towards achieving ASEAN’s regional economic integration agenda,” said Ms Costigan. “We look forward to learning more about Laos, its culture and people as we grow this relationship.”

Special Promotion from The Pizza Company and Swensen’s

On the special occasion of the seventh anniversary of the Pizza Company and Swensen’s opening in Laos, the two restaurants are offering special promotions to give back to their customers, including a buy 1 get 1 free offer. This offer is valid only for a large pizza with crusts, with any kind of topping, dine-in only from Monday to Thursday.

 

Another special offer is only applicable on Friday to Sunday, the Celebration Set of 333,000 LAK which is now reduced to 259,000 LAK.

 

For Swensen’s fans, any purchase of Mango Crepe Trio or Hurricane will automatically grant you a free scoop of ice-cream. For any order of any type of cake, you will get a discount from 250,000 LAK to 199,000 LAK and get a mango smoothie or chocolate shake for free.

 

Please come and join the celebrations for great promotions and value at the Pizza Company and Swensen’s at the following branches: Lao Cultural Hall, Phonesinuane, Dongdok, Vientiane Centre and Suanmone, from 17 May onward. Offers are limited!

Pizza pizza3 18553024_10101685782016384_193640279_o-Recovered

Café Amazon PTT Franchise Seeks to Dominate Lao Market

amazon
amazon

By now, PTT and Café Amazon have become a recognizable brand to the people of Laos. With already 25 Café Amazon outlets operated by PTT Lao, PTT  Thailand has a plan to further expand its master franchise of Café Amazon in the Lao market, with a target set at 38 branches by 2017 and 75 branches by 2021.

The master franchise expansion was signed between Senior Executive Vice President of PTT Public Company Ltd, Auttapol Rerkpiboon and Managing Director of PTT Lao Company Ltd, Somchart Sermvongtraku on May 30th at Crowne Plaza in Vientiane.

Chief Operating Officer, Downstream Petroleum Business Group PTT Public Company Ltd, Mr Sarun Rungkasiri stated that PTT aims to become one of the lead brands in the Indochina region, by introducing Café Amazon to new markets in Southeast Asia along with PTT petroleum products.

After the success of granting the first rights of a master franchise of Café Amazon in Cambodia to PTTCL, PTT continued to forge along the same path by granting rights to PTT Laos and other countries such as Myanmar, Japan and Oman.

Mr Sarun explained, “Granting rights of a master franchise of Café Amazon to PTT Lao not only creates an opportunity to expand our businesses remarkably in Southeast Asia but also provides jobs for Lao people and generates economic growth for our neighbor with products and services of international standards at reasonable prices.”

Dengue Fever Thriving in the Capital

dengue fever
dengue fever

Confirmed by health authorities, the Lao public is still in danger of being infected with dengue fever this year, as the reported rate of cases has increased.

From March thru May 26 of this year, the recorded cases of dengue fever rates in the capital were higher than other provinces in the country, with 268 cases reported while during the same time last year, no cases of infections were reported.

In an effort to reduce the risk of dengue related illnesses, Head of Epidemiology Division under the Vientiane Health Department, Dr Chanthalay Sayavong, believes that increasing public awareness is one of the main strategies to prevent dengue transmission.

“In communities, the cooperation of villagers is necessary to remove mosquito breeding grounds. Family members, family heads, village heads, associations, charities and monks are also important in the battle against the potentially fatal virus,” he said.

Health authorities face a continued threat from the mosquito-borne virus during this peak risk period. Every household is advised to toss out water that collects in jars and vases, and to cover such vessels to prevent more water from filling inside, as  pools of stagnant water is where mosquitoes typically lay their eggs

People are urged to clear shrubbery from around their homes, ensure that tins, jars and tires are turned upside down so that water does not collect water and to routinely change water in flower vases.

Dr Chanthalay mentioned that Laos also requires vector surveillance, resulting in pilot projects in target provinces to determine dengue transmission risk areas and to monitor changes in mosquito density.

He noted that dengue is an infectious tropical disease transmitted by particular breeds of mosquito, in this case the Aedes Aegypti and Aedes Albopictus species,  and symptoms are rashes, severe headaches, and pain in the joints.

However, the six provinces of Bokeo, Luang Namtha, Xaysomboun, Phongsaly, Huaphan and Xieng Khuang have not reported any outbreaks recently.

According to the National Centre for Laboratory and Epidemiology, there were 281 dengue cases in Vientiane last year from a total of 1,950 dengue cases recorded nationwide.

Seven fatalities were recorded, with Champassak being the most impacted from the outbreak, six of the seven deaths were recorded in the province along with the highest number of cases reported,  while neighboring Saravan province reported the other death.

Is Laos Finally Getting a Krispy Kreme?

king food
king food

Great news for foodies who have to travel to Bangkok just to get their Krispy Kreme fix . King Food Group Co, a Thai-based company owned by the Mahagitsiri family, has announced that they are looking to enter the food market in Cambodia, Laos, Myanmar and Vietnam (CLMV), bringing along Krispy Kreme, Cinnabon, Pie Face, Jamba Juice and International House of Pancakes.

As a result of rising demand from middle-income people in the region, the president of King Food and local operator of the Krispy Kreme bakery chain, Ausanee Mahagitsiri, has stated that the company would convene with the owners of all bakery brands in its portfolio, including Krispy Kreme, Cinnabon, Bulgogi Brothers and Pie Face to request the rights to operate bakery chains in the CLMV market.

“These countries are promising markets due to the rise of middle-class people and their lifestyles have rapidly changed to welcome more fast food and bakeries,” she said.

At home, King Group said it would double its investment to 400 million baht (about $11.7 million) to open 22 branches under six bakery, food and juice brands this year. Of those 22 branches,  eight will be under the Krispy Kreme brand , four under Cinnabon, three under  Pie Face, five under Jamba Juice and two under International House of Pancake.

With the understanding that people are becoming more mindful of their health, Ms Ausanee said King Group is interested in expanding into the fruit and veggie juice sector due to the demand, valuing the market at 200 billion baht (about $5.8 million).

“With all the expansion plans, King Food Group expects its sales to grow 40 percent to 1 billion baht ($29.3 million) by the end of the year.”

According to figures provided by the Thai embassy in Cambodia, the bilateral trade volume of Cambodia and Thailand was valued at $5.6 billion in 2016, a $100 million increase compared to 2015. Thai exports to Cambodia last year were worth $4.7 billion while Cambodian exports to Thailand were valued at $936 million, a 46 percent increase compared to 2015.

Source: Bangkok Post, Khmer Times

Why Do The Chinese Come to Laos?

Chinese Come to Laos

The number of Chinese immigrants to Laos increases daily, with men and women who struggled to succeed in rapidly developing China now seeking new lives for themselves in Laos. More than wealth or opportunity, these Chinese business people wish to begin anew in a country where life moves at a slower pace, without any the stress of their homeland. Around them grow new communities and groups, reflecting the unique presence they bring to Laos.

 

 

Source: Asia Insight, NHK World