Luang Prabang Special Economic Zone (LSEZ)

Agreement Signing Ceremony Between Phousy Group and Government for SEZ


  • Location: Laung Prabang Province
  • Establishment: 2016 (land tenure 99 years)
  • Total Investment: 1,322,000,000 USD
  • Developer: Government + Private (Lao)
  • Area: 4,850 ha
  • Location Advantage: Abundant land with a plus of scenic view suitable for green city. Trade with neighbouring countries.

Investment Portfolio:

1. Real Estate Development
2. International High School
3. Hospital Medical Centers
4. Banking and Financial Institution
5. Golf Course and Sport Fields
6. Business Centers and Duty Free Shops
7. Hotel, Entertainment Venues and Restaurant
8. Warehousing Facilities
9. Agriculture Areas and Agricultural Processing Products
10. Industrial Areas
11. Infrastructure (Wastewater Treatment, Waste Disposals, Telecommunications, Electricity, Eater Supply, and others)
12.Sport Center, Cultural Center and Amusement Park

General View of LSEZ Development Plan

LSEZ Development Plan for 3 potential and Economic Projects

Raffle Hotel

Novotel Hotel

Shopping Center and Duty Free

2023 Brief information on LSEZ Development

Item Project Name Level N. of Rooms Invest.Value/$ Construction Year Service
1 Raffle Hotel 5 Stars 160 rooms 76,499,525 2019 2022
2 Novotel Hotel 4 Stars 380 rooms 106,666,800 2019 2023
3 Shopping Center and Duty Free 66,666,700 2019 2023

Expected Income from LSEZ Development

Item Project Name Invest.Value/$ PB NPV IRR
1 Raffle Hotel 76,499,525 10 11,234,356.57 12,56%
2 Novotel Hotel 106,666,800 14 10,694,431.72 12,29%
3 Shopping Center and Duty Free 66,666,700 5 19,467,551.52 16%

Expected Income from selling on Land Concession

Before Infrastructure

Item Description Unit Volume Price/$ Total Amount
1 Sell land year 2020 Hectare 50 200,000 10,000,000
2 Sell land year 2021 Hectare 20 200,000 4,000,000
3 Sell land year 2022 Hectare 20 200,000 4,000,000
4 Sell land year 2023 Hectare 10 200,000 2,000,000
  Total   100   $20,000,000

After Infrastructure

Item Description Unit Volume Price/$ Total Amount
1 Sell land year 2020 Hectare 300 400,000 120,000,000
2 Sell land year 2021 Hectare 200 400,000 8,000,000
3 Sell land year 2022 Hectare 200 400,000 8,000,000
4 Sell land year 2023 Hectare 200 400,000 8,000,000
  Total   900   $360,000,000

Phousy Group Sole Company Limited

LuangPrabang Special
Economic Zone

Date: 25 June 2019

Executive Summary
LuangPrabang Special Economic Zone

  • Pursuant to the Agreement on the Development of LuangPrang Special Economic Zone between the Government of Lao PDR and PHOUSY Group
    Sole Company Limited, dated on 17 January, 2016;
  • Pursuant to New Degree on Special Economic Zone, ref no: 188/G, dated 7 June, 2018.

1. Project Areas for Concession

LuangPrang Special Economic Zone (LSEZ) has total area of 4,850 hectares, located in new city namely Chompheth city (S1) covering a total areas of 3,350 hectares and covering an urban area of LuangPrabang for 2 points (S2 and S3) with total area of 1,500 hectares. Such areas are located among Mekong River and if we want to cross between S1 and S2, it is required for the Lao Government or Phousy Group Sole Company Limited (Project Developer) shall establish a
Mekong Bridge in order to provide facilities in communication.

2. Investment Project approved by the Lao Government

12 Investment Projects approved by the Lao Government for implementing and
establishing as planned:
   1) Real Estate Development;
   2) International High School;
   3) Hospital medical centers;
   4) Banking and Financial Institution;
   5) Golf Course and Sport field;
   6) Business centers and duty free shops;
   7) Hotel, entertainment venues and restaurant;
   8) Warehousing facilities;
   9) Agriculture areas and agricultural processing products;
   10) Industrial areas;
   11) Infrastructure Wastewater treatment, waste disposals, telecommunications, electricity, water supply, and others);
   12) Sport center, cultural center and amusement park.

3. Benefits from the Investment

LuangPrabang Special Economic Zone (LSEZ) provide the facilities and other benefits to developers and investors as follows:
   1) Co-Developer for LSEZ has rights to be member of Administration Board of Luangprabang Special Economic Zone, which authorizes to issue the enterprise licenses by itself;
   2) In case of investment value of more one hundred thousand (100,000) US dollar, husband or wife and children shall have rights to get multiple visa for the first period of 10 years with the possibility of extension;
   3) Such Co-developer for LSEZ shall receive the special rights from Lao Government such as other incentives on taxes:
      3.1 Receive profit tax exemption for four (4) years from the year that generates revenue, upon the expiration date, it shall pay 50% of the tax rate defined in the laws of Lao PDR;
      3.2 Pay all other taxes at 50% of the rate defined in the laws of Lao PDR;
      3.3 Receive an exemption for all taxes and custom fees for importing machinery, equipment, raw materials, vehicles that are used within the zone in accordance with the construction plan.
   4) LSEZ has Lao China Railway Station for loading goods and services in the zone. The objectives are to import and export based on the Lao Government’s applicable rules and regulations;
   5) Co-Developer for LSEZ shall receive incentives from the land concession for establishing and its objectives are to sell, handover, transfer or success for the next generation until the expiration date of the use of the property, but after the expiration date of land concession, it becomes the property of the Lao Government that the property owner is able to rent for the land with the state or other kind of conditions in accordance with the Laws of Lao PDR.

Overall Conceptual Planning and Urban Design for the New City of Luang Prabang

Architectural Design & Research Institute of SCUT 07/2016

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+856 21265394

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