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Heart of Opportunity
The Economic Quadrangle: Laos-Thailand-Myanmar-China
A Route To The Economic Quadrangle
"The Economic Quadrangle" is now the focus of Asia. Thailand, Myanmar, Laos and China are working together to develop an area of more then 180,000 square kilometers to become one of the most significant economic forums of the world.
A population of more than 350 million people, of different nationalities, are the base of this Economic Quadrangle and these numbers are rapidly increasing. This growth will certainly provide support to the area as the economic place for consumers who demand more choices for shopping or excursion. Also investors, businessmen and manufacturers who are intent to expand their trading, and investment can aim at increasing their benefits.
However, the level of economic and social linkages, in this area, is not so high due to the inconvenient transportation. Therefore, the "Houayxai-Louangnamtha-Boten" route is being constructed by a joint venture between the Government of the Lao People's Democratic Republic and the U-Sa Family Limited Partnership, under the name of "The Economic Quadrangle Joint Development Corp., Ltd." The company is under the control and protection of the Civil and Commercial Laws, Law on the Promotion of Foreign Investment of Lao People's Democratic Republic.
An Alternative To Profitable Investments
The "Houayxai-Louangnamtha-Boten" route is a 250 km., economic highway, the way to profitable investments. This road, which has been developed, through an area of more than 29,000 rai, will be beneficial to investors, by way of commercial, industrial and tourism network.
From the potential of being the center of the sub-region, this area is, therefore, suitable for investors to invest, especially in the company's development projects. "The Economic Quadrangle Joint Development Corp., Ltd." has divided the process of operation as follows:
Construction of Concession Highway
Construction of 250 km., 2-lane state highway (one lane in each direction_ from Houayxai-Louangnamtha-Boten, 9 meters wide, and 6.5 meters of carriage way will be complete in 1998. The revenue will be derived from the Toll Free and the Highway Maintenance Fee.
Construction and Improving of Cultural and Tourism Attractions
e.g., Model Cultural Village, Cultural Centers at Houayxai and Vieng Phukar, etc.
Land Preparation, and coordination for Basic Infrastructures Improvement
This operation is under the guidance of the Master Plan for Operations, and is aimed to serve any forms of investment.
Marketing the Development Projects
At this stage the Company will search for potential investors to invest, or jointly invest with the Company, in the projects.
Opportunities For Investors
Foreign businessmen and overseas investors will receive privileges, which can be considered as a new dimension of the investments in this area such as:
1. Tax Privileges
"The Economic Quadrangle Joint Development Corp., Ltd." has requested the Government of Lao People's Democratic Republic to consider tax exemptions, reduction of income tax, and the import/export taxes on raw material and production equipment for foreign investment from 8-15 years depending on the type of business.
2. Moving Expenses-Operation Costs
The rates for rental of the operation areas, including the labor costs are very low when compared with other countries in this region.
3. Investment Stability
All foreign investors receive protection under the Law on the Promotion of Foreign Investment of Lao People's Democratic Republic, with no limits tot eh type of business, except when the business is a violation to the policy of the Government of Lao People's Democratic Republic, such as gambling. The "Economic Quadrangle Joint Development Corp., Ltd." will request the Government of Lao People's Democratic Republic to consider a permission for long term rental of operation areas to the investors, for 30 years or more as appropriate.
Development Projects
Highway Development Project
The construction of international highway from the northern border of Thailand, starting from Houayxai (Bokeo Province) the opposite side of Chiang Khong District, Chiang Rai Province, passing through Louangnamtha (Louangnamtha Province) to Laos border at Ban Boten. This 250 km. road will connect with the Chinese border at Ban Bor Han, and will include 4 check points, which will be the traffic control center, tourism public relations center, highway maintenance center, and the center for facilities system. According to the study, there will be more than 42,000 vehicles, with approximately 200,000 people passing through this highway per year, with transportation of goods of more than 150,000 tones per years.
Special Economic Zone Development Project
The real estate development on state land along the highway area is approximately 25,000 Rai. It is suitable for investment promotion area, free trade zone for general commercial centers, international commercial centers, and industrial zones allocated for investors called "Special Economic Zone"
Environmental and Cultural Tourist Attractions Development Project
The real estate development on state land along the highway area is approximately 60 Rai, and would be available for the establishment of the environmental and cultural reservations, including construction and upgrading of tourist areas such as: An old cultural center, Cultural village, and Scenic areas, etc.
Tourist Basic Facilities Development Project
The real estate development on state land along the highway area, is approximately 4,000 Rai, and would be available for the establishment of business service facilities as the "Special Economic Zone". Allocated areas with investment licenses will be available for foreign investors to lease for business operations including: hotels, resorts, gas stations, duty free and souvenir shopping centers, bus station and goods transportation depots.
Transportation Supplemental Development Project
Development of a transportation system to serve international passengers and goods appropriate to the foreign investors to make concessions of the Tha-Laos-China transportation system.
Law On The Promotion Of Foreign Investment Of Lao P.D.R.
On the 19th March 1994, Law on the Promotion of Foreign investment of Lao People's Democratic Republic was effective. Under this newly revised law, the Laotian Government set up the Office of Foreign Investment Management Committee (FIMC). The major functions of the Committee are to give advice to foreign investors, to approve foreign investment projects, as well as to coordinate with other concerned agencies regarding investments. The approval process of the Committee is under the basis of mutual benefits, and all sectors of investment are entitled to the promotion. Nevertheless, the main focus is one the investments in agriculture, resource-base industry, import-substitution industry, and infrastructure. The Government guarantee the rights of investors, and will not encroach on business management.