Luang Prabang Special Economic Zone (LSEZ)
Agreement Signing Ceremony Between Phousy Group and Government for SEZ
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.