Category: General

From July 3 to 6, the Investment Promotion Conference and Signing Ceremony of the Investment Cooperation Memorandum of Asia-Potash International Intelligent Industrial Park in Khammouane Province, Laos sponsored by the Ministry of Industry and Commerce and the Khammouane Provincial Government were grandly held in Guangzhou, China.

Different from the previous infrastructure construction investment promotion of the Lao government, this Investment Promotion Conference is Laos’ first large-scale industrial investment promotion event held overseas.

It consists of three parts: high-level government-enterprise talks; enterprise investment promotion symposium; investment promotion conference and signing ceremony of the investment cooperation memorandum.

Highlighting the Asia-Potash International Intelligent Industrial Park established by the government as a promising hub for new development, it presents over 100 well-known Chinese enterprises, investors and financial institutions with the opportunity to witness that Laos is embracing the world and striving for development.

The investment promotion conference was pragmatic, efficient and fruitful. The event resulted in the signing of ten projects with a total investment of USD 835 million (approx. LAK 15.1 trillion) directly at the venue, involving industrial chain projects such as chlorine-alkali, bromine deep processing, zinc-bromine flow battery energy storage as well as emerging industry projects such as biological science and intelligent manufacturing.

After all the projects are put into operation, the total output value will exceed USD 2 billion (about LAK 36.2 trillion). This is a concrete measure to thoroughly implement the important instructions of the Party, the government and the National Assembly on stabilizing the economy, attracting foreign investment, increasing foreign exchange and replacing imports.

Moreover, it is also a practical action based on the consensus on Laos’ economic development and another milestone in Laos’ economic development process.

The main focus for overcoming economic difficulties lies in promoting openness and fostering development.

In order to effectively solve the problems existing in Laos’ economic development such as inflation, currency depreciation and insufficient foreign exchange reserves, Malaithong Kommasith, Minister of Industry and Commerce, and Vanhxay Phongsavanh, Governor of Khammouane Province, held in-depth talks with Guo Baichun, Chairman of Asia-Potash International, and his senior management team to discuss and communicate on the investment and economic development in Laos, especially the industrial development, during the conference.

Guo Baichun said that the current difficulties faced by Laos’ economy are temporary, and development is the most effective solution lies in pursuing development.

By maintaining a stable and consistent opening-up policy, Laos’ unique advantages will attract increasing investments, and all problems will be readily solved. In this regard, Asia-Potash International is willing to provide support and assistance.

Laos possesses remarkable advantages in terms of resources, energy, labour, and market. By utilizing the Asia-Potash International Intelligent Industrial Park as a platform to attract foreign investments, the Lao government has garnered significant attention from numerous Chinese enterprises, investors, and financial institutions.

It is suggested that the Lao government seize the favorable opportunity of the overseas layout of Chinese enterprises, make full use of Laos’ unique advantages to link up with the global market and stimulate the vitality and endogenous development momentum of Laos’ economic development. Currently, numerous domestic enterprises have shown keen interest in investing in and collaborating with the non-potash industries within the Asia-Potash International Intelligent Industrial Park.

If these investments materialize, it will not only reduce imports but also earn foreign exchange through exports, leading to an increase in foreign exchange reserves and residents’ income.

This will not only solve the existing problems faced by Laos but also lay a foundation for future development.

Malaithong Kommasith and Vanhxay Phongsavanh concurred with Guo Baichun’s views and suggestions. Malaithong Kommasith pointed out that to solve Laos’ current economic difficulties, it is necessary to develop and make Laos’ economy competitive.

He supports the concept of “equal importance of agriculture, industry and commerce” and believes that it is necessary to promote the industry as a crucial pillar of economic development, so as to reduce imports and earn foreign exchange through exports in processing production.

The Lao government will continue to create a more open and inclusive investment and business environment, attract more foreign-funded enterprises to invest in Laos, support them to grow and thrive in the country, and bolster the economic development of Laos.

Interpretation of investment promotion policies to enhance the confidence of foreign-funded enterprises in investment

In order to enhance investors’ understanding of Laos, Minister Malaithong Kommasith, Governor Vanhxay Phongsavanh, and Asia-Potash International jointly organized an investment promotion symposium.

This symposium invited numerous Chinese investment enterprises and international financial institutions. With a focus on accelerating project construction, integrating with Laos’ development and providing preferential policy support, they conducted in-depth research on the needs of settled enterprises and addressed their concerns regarding investment promotion policies, energy resource advantages, emerging industry development, foreign exchange management system, among others.

The symposium received high praise from participants, significantly boosting the confidence of enterprises and institutions in investing in Laos.

Malaithong Kommasith said at the meeting that despite the ongoing global economic recession, Laos has managed to maintain a commendable economic growth rate of 4.8%.

Within the framework of both the Belt and Road Initiative and the Lancang-Mekong Cooperation, leaders from both countries are committed to enhancing the cooperation mechanism and establishing a community with a shared future across all domains.

We encourage Chinese investors to invest in Laos, encompassing sectors such as mining, industry, agriculture, tourism, and transportation. We hope that through the platform of Asia-Potash International Intelligent Industrial Park, more investors can be attracted to make investments in Laos.

Mr. Vanhxay Phongsavanh, Governor of Khammouane Province, described in detail the three core advantages of Khammouane Province – energy and minerals; agriculture and forestry; service and tourism.

He said that Asia-Potash International is a rapidly growing enterprise with outstanding development speed and quality in Khammouane Province and even Laos.

Its investment projects account for the largest proportion of foreign investment in the province. The Asia-Potash International Intelligent Industrial Park has a broad development prospect, and enterprises and investors from China are most welcome to invest in the province. Khammouane Province is committed to providing utmost convenience and support for these endeavors.

Realization of accurate investment promotion through the industrial park model and active integration into the global supply chain and industrial chain

In the evening of the same day, the Investment Promotion Conference and Signing Ceremony of the Investment Cooperation Memorandum of Asia-Potash International Intelligent Industrial Park officially took place. The Khammouane Provincial Government signed an investment cooperation memorandum with the enterprises settled in the park under the joint witness of Minister Malaithong Kommasith, Governor Vanhxay Phongsavanh, Saysana Sitthiphone, Vice Chairman of Lao-China Cooperation Committee, Somchith Inthamith, Advisor of Lao National Chamber of Commerce and Industry, Guo Baichun, Chairman of Asia-Potash International, Chen Jing, Executive Deputy Mayor of Huaihua, China, Wang Xiaokang, President of China Industrial Energy Conservation and Cleaner Production Association, and Wang Xiaofeng, President of China Inorganic Salts Industry Association.

Leaders from relevant departments of the Lao government and Khammouane provincial government, Khouanchay Iemsouthi, Counselor at the Embassy of Laos in China, Vanhpheng Saisomphou, Consul General of the Consulate General of Laos in Guangzhou, Senior Management Team of Asia-Potash International, as well as nearly 300 industry insiders from the settled enterprises, prospective enterprises, investment institutions and international financial institutions, attended this grand event.

At the beginning of the ceremony, Asia-Potash International, the operator of the park, highlighted the planning, construction and operation of the Intelligent Industrial Park. The impressive modern park design, ongoing project construction, bustling and organized production scenes, professional and standardized production lines and well-developed supporting facilities comprehensively show the strong development trend of the industrial park, evolving from its initial stages to its current state of expansion and strength.

During his speech at the signing ceremony, Minister Malaithong Kommasith extended a warm invitation to entrepreneurs and investors from China.

He said that Laos and China are friendly neighbors separated by a narrow strip of water. He acknowledged that China has become the largest foreign investor in Laos and that the two sides have the potential to develop industry and modern agriculture on the basis of the principles of co-creation, sharing and mutual benefit.

In the country’s Processing Industry Development Plan for 2021-2025, the mineral and chemical processing industry has been designated as one of the eight priority industries.

Additionally, Khammouane Province has been identified as one of the five economic development centers in the country. These strategic considerations provide strong support for the construction of Asia-Potash International Intelligent Industrial Park.

The Laos government will provide comprehensive support for the development of the industrial park. Through the active participation of all stakeholders, it is anticipated that the industrial park will become one of the outstanding models for the development of a comprehensive mining industry, contributing to national fiscal revenue generation, local development and reputation enhancement.

Governor Vanhxay Phongsavanh delivered a speech in which he expressed his strong affirmation of the significance of the Asia-Potash International Intelligent Industrial Park. He said that the industrial park represents an innovative approach to resource development, which will help improve the local industrial system and play a decisive role in driving the economic development of Khammouane Province and even Laos.

Leveraging its three core advantages, Khammouane Province will establish the Asia-Potash International Intelligent Industrial Park as the focal point for development, facilitating seamless integration and collaboration with more high-quality enterprises in China. On the basis of abiding by Laos’ national laws and regulations, it will promote convenient, fast, transparent and fair investment and create a safe and reliable investment environment.

Laos sincerely invites all Chinese entrepreneurs and strategic investors to investigate and make investments in the country so as to continuously expand and strengthen the industrial chain, create a model for economic cooperation between Laos and China, and realize a new multi-party win-win development model.

Ma Yingjun, General Manager of Asia-Potash International, expressed his heartfelt thanks to the Lao government on behalf of Asia-Potash International. He said that Asia-Potash International 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.

Behind the achievements of “Asia-Potash Speed” and “Laos Miracle” lies the strong support, concern and guidance given by the Lao government to Asia-Potash International.

As a landmark project under the framework of government-enterprise cooperation between China and Laos, the industrial park project integrates industrialization, urbanization and modern agricultural construction, and comprehensively promotes the accelerated development of the service industry.

It effectively enhances the sustainable development capabilities of enterprises and promotes Laos to form an industrial pattern that reduces imports while earning foreign exchange through exports. On the fast-growing fertile land for investment in Laos, Asia-Potash International is confident that it can inject new momentum into cooperation between Laos and China.

Tong Yongheng, Deputy General Manager of Asia-Potash International and Head of Laos Potash Fertilizer Base, described the development of the industrial park. He said that Asia-Potash International Intelligent Industrial Park, based in Khammouane Province, leverages its unique advantages in resources, energy, market access and cost-effectiveness to open up to and bring together global top enterprises.

The development model of industrial clustering will generate a strong synergy effect among various industries. The park consists of three major sections: the potash fertilizer industrial park, the non-potash industrial park, and the Asia-Potash town. It covers a total area of 2,000 hectares and is expected to attract a total investment of USD 4.31 billion.

At present, it is at the stage of investment promotion. It is estimated that by the end of 2026, the medium-term project construction will be completed, and the salt chemical industry matching the scale of 5 million tons of potash fertilizer will be built; the construction of all projects is expected to be completed by the end of 2028.

In the future, it will continue to attract investors, enhance the recycling of upstream and downstream resources, and establish a comprehensive industry chain ecosystem.

Cao Lixiang, Chairman of Hengguang Technology, delivered a speech on behalf of the signing enterprises. He said that the chlorine-alkali project in the Asia-Potash International Intelligent Industrial Park is their first overseas investment project. 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.

In the future, the company plans to establish a strong presence in the Lao base. On the one hand, it will leverage the industrial chain of the park to construct advantageous projects in chemical industries such as sodium, magnesium, sulfur and chlorine; on the other hand, it will seize the current historical opportunity to construct a number of pesticide and fertilizer projects to support the agricultural industrialization in Laos. Under the Belt and Road Initiative, the company will achieve mutual benefit and win-win results between its overseas development strategy and Laos’ economic and social development through the support and opportunities offered by the Asia-Potash International Intelligent Industrial Park.

The industrial orientation of the signed projects is clear, covering relevant upstream and downstream modern industrial projects such as bromine, sodium chlorate, chlorine-alkali, nitric acid, industrial salt, calcium carbide/PVC, as well as modern agricultural projects such as rice.

It involves not only the chemical industry, energy, and agriculture but also forward-looking high-tech industries such as intelligent manufacturing and biotechnology. The official signing of this project will further optimize the industrial layout and upgrade the industrial chain of the park, thereby injecting new vitality into Laos’ integration into the global industrial chain and supply chain.

Under the guidance of the Party and government’s policies on improving the investment environment and attracting foreign capital, the industrial park model represented by Asia-Potash International Intelligent Industrial Park will emerge as a new focal point for fostering national economic development.

As a high-quality platform that brings together top resources, the Asia-Potash International Intelligent Industrial Park will continue to attract investment and expand its scale. With top-notch enterprises acting as the driving force, the park will support the country’s high-quality economic development by promoting targeted investments within the industrial chain.

Source: Lao News Agency

On Jul 11, Vice President of the National Assembly Sommad Pholsena held a press conference on the consideration of a draft 10-year strategy on mineral development (2021-2030) and vision 2035 by members of the National Assembly who are attending its ongoing 5th Ordinary Session.

“The mineral development strategy (2021-2030) and vision 2035 are crucial. Therefore, the defining of its contents must ensure the management and use of mineral resources are sustainable, effective and bring optimal benefits to the nation,” said NA Vice President Sommad Pholsena.

Members of the National Assembly have asked the government to attach greater attention to the management and monitoring of mining activities and conduct assessment on their environment and social impacts as well as to the development of human resources for the mining industry.

They suggest the government to hold at least 50% of shares in mining projects and require that the mineral development strategy and vision prioritise categorizing high-value and rare minerals, demarcating mineral protection and reservation areas so that they can be mined in the future.

They asked the government to allocate funding for a geological-mineral mapping survey as the findings of which can be used to identify economic effectiveness of mining projects and mineral protection areas.

“We should come up with ways to reprocess the minerals we mine so that we don’t need to mine new minerals as a result they can be mined in the future. As for the management, mining and processing of strategic minerals, minerals need to be processed after they are mined and environment impacts must be prevented,” said Mr. Sommad Pholsena.

Although the government has attached attention to addressing many issues, it still continues to face many challenges including lack of mining knowhow and technology, especially machinery, modern technology as a result foreign companies tend to be authorized to mine the natural resources.

Source: Lao News Agency

The National Assembly has learned that over the past six months the government has achieved in maintaining a political stability with economy continuing to grow, social peace and order maintained, gross domestic product (GDP) growing by 4.8% higher than 4.5% expected by the National Assembly, agricultural production increasing by 3.8% and the service sector growing by 5.6%, according to Vice President of the National Assembly Sommad Pholsena.

On July 11, Mr Sommad Pholsena hold a press conference on the government’s implementation of the socio-economic development plan, state budget plan, monetary plan, and the two national agendas – addressing Economic and Financial Difficulties and Drug issues and targets set for the last six months of 2023.

Revenue collection in the first six months is expected to reach 18.4 trillion kip, equivalent to 48% of the annual plan set for 2023, 15.55% of the country’s GDP.

Domestic revenues reached 14.8 trillion kip, accounting for 43% of the annual plan, 6.43% of the GDP.

With the closure of illegal currency exchange shops and reform of banking statistic database, foreign reserve has increased to the level enough for sustaining four months of imports, higher than three months expected by the National Assembly.

Trade surplus reached over 998 million US dollars with exports of the agriculture and forestry sector reaching over 1 billion US dollars, equivalent to 90.75% of the annual target.

“The government still faces numerous problems that it needs to address such as inflation, rising goods prices, deforestation, illegal occupation of government land and labour shortage,” said NA Vice President.

The NA called on the government to attach attention to achieving targets set in the socio-economic development plan, state budget plan, monetary plan, and the two national agendas on addressing economic and financial difficulties and drug issues with a focus placed on addressing inflation, promotion of domestic and foreign investment and making sure payment of foreign-investment projects in the country is bank-based.

The assembly asked the government to focus on tapping new sources of incomes, modernize revenue collection through promoting the use of modern technology, make greater efforts to suppress corruption, promote agricultural production and processing industry so as to reduce imports.

It has said that the government need to better monitor state investment projects especially those on road construction, accelerate compensating families affected by investment projects, accelerate adjusting electricity prices for industrial units, SMEs, and households, cancel mining projects that fail to proceed as planned, or are ineffective.

Source: Lao News Agency

The number of corporate bankruptcies in Japan for the first six months of 2023 rose 32.1 percent from a year earlier to a five-year high of 4,042, as businesses took on increased debt to stay afloat amid the coronavirus pandemic, a survey by a credit research company showed Monday.

The rise in failures involving liabilities exceeding 10 million yen ($70,000) comes as many companies have begun repaying interest-free and unsecured loans, which lenders extended under a government program in response to the pandemic, Tokyo Shoko Research Ltd. said.

Rising material and labor costs have also affected businesses, the research firm said.

In total, 322 cases involved companies funded by the emergency program, almost doubling from a year before. Business insolvencies resulting from rising prices increased 3.3-fold to 300, according to the firm.

The number of corporate bankruptcies could increase further, especially among firms that have been slow to recover from the pandemic, the firm said.

The total liabilities left by bankrupt companies fell 45.3 percent to 934 billion yen in the six months after surging last year due to an extraordinarily large debt held by Marelli Holdings Co., a major auto parts maker.

The company filed for protection with a court in June last year under Japan’s civil rehabilitation law, with debts totaling 1.13 trillion yen.

All 10 industry categories covered by the survey saw an increase for the first time in 25 years, Tokyo Shoko Research said.

The service sector logged the highest number at 1,351 cases, up 36.1 percent, with many restaurants going out of business after the government ended its pandemic-related financial aid.

The construction industry came second at 785, up 36.3 percent, as it was hit by rising material costs.

Source: Lao News Agency

Under the Decision approving the master plan for the development of the national airport network, Vietnam will establish 30 domestic and international airports in the 2021-2030 period and the figure will be 33 by 2050.

Source: Lao News Agency

Friendship and people-to-people exchanges between the Central Highlands province of Dak Lak and Cambodia’s Mondulkiri province have been held over the past years in the spirit of trust and mutual understanding, leaving a deep and lasting impression.

Dak Lak has two border districts and four border communes, with over 71 km of borderline with Mondulkiri province.

During 2017-2022, the Vietnam-Cambodia Friendship Association (VCFA) of Dak Lak province and the Cambodia-Vietnam Friendship Association of Mondulkiri province held gatherings during the two countries’ major celebrations.

From May 11-12, 2023, the Dak Lak provincial VCFA held an exchange conference with Vietnamese and Cambodian business clubs in Buon Ma Thuot city.

It also offered free health check-ups and medicines to 500 residents in Pechreada district and handed over 50 bicycles to disadvantaged students in Mondulkiri province.

The Dak Lak provincial Border Guard also offered search and rescue to the Cambodian counterpart, donated medical equipment worth over 2 billion VND (86,900 USD) during the fight against COVID-19 and other necessities to Mondulkiri’s armed forces.

Over the past five years, the Dak Lak provincial VCFA held 341 sessions to raise awareness of land border treaties, agreements and regulations for over 21,000 officials and residents.

Vice Chairman of the Dak Lak provincial People’s Committee and Chairman of the provincial VCFA H’Yim Kdoh said both associations renewed their memorandum of understanding on cooperation and people-to-people friendship for 2023-2028.

Between now and the year’s end, the provincial VCFA will set up the Vietnam-Cambodia business club and hold a gathering of Dak Lak and Mondulkiri’s border guard stations on the occasion of the 70th anniversary of Independence Day of Cambodia (November 9), he said./.

Source: Vietnam News Agency