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Date: 24.10.2017
savannakhet Info

1. administration

- administration: 15 district, 1,016 villages

- population: 981,392 people, 98,005 female

- growth rate is 1.7% per year

- density is 5 people per km2

- Land area: 2,177,00 ha. including : agriculture area: >600,00 ha, forest area: 1,5000,000 ha, The lowland covers 58% and highland area is 42%

2. labor force

the number of individuals age 15 to 64 is 553,630 people, 263,536 females, covers 56.41% of total population

The minimum wage is 900,000 kip per month    

3. electricity cost

resident’s consumption:

- 0-25 Kwh                                  341 kip/Kwh/month

- 26-150Kwh                             406kip/Kwh/month

- 150s Kw handover                979kip/Kwh/month

- Industry                                   749kip/Kwh/month

- Commerce/Services              1,058kip/Kwh/month

- Entertainment                        1,401kip/Kwh/month

- Irrigation                                   406kip/Kwh/month

4. Water supply cost

resident’s consumption:

- 0-7 m3                                          2,025 kip/month

- 8-15 m3                                       2,978 kip/month

- 15 m3 handover             3,930 kip/ month

- public institutions                      2,978 kip/m3/month

- businesses                                   5,264 kip/m3/month

5. Transportation

- The national road #9 is connecting the East West Economic Corridor or (EWEC)

- The national road #13 is vertically running through from south to the north

- The Airport: there are flight from Savannakhet-internal and Savannakhet-external, such as:

- Vientiane price 920,000 kip

- Champasack (Pakse) price 520,000 kip

- Thailand (Bangkok) price $150

6. Telecommunication

Telephone network is available and accessible every district and external

7.Road transport

internal ticket price

- Savannakhet – Vientiane:                 70,000-120,000 kip

- Savannakhet – Khammuane:           30,000 kip

- Savannakhet – Pakse             40,000 kip

External ticket price

- Savannakhet – Donghah (Vietnam)

General:            90,000 kip

VIP:                    110,000 kip

- Savannakhet – Teutienhe (Vietnam)

General:            90,000 kip

VIP:                    110,000 kip

- Savannakhet – Danang (Vietnam)

General:            110,000 kip

VIP:                    150,000 kip

8. Forms of FDI

- Business cooperation by contract

- A joint venture between Domestic and Foreign investors

- 100% Domestic or Foreign owned enterprise

9. one stop service

- For concession service business, the one stop service unit is available at the department of planning and investment

- For general business, The one stop unit is available at the department of industry and commerce

- For any business investing in the special economic and specific economic zones, the one stop service unit is available at the special economic office

10 land concession (Public land)

for animal raising activities

- Zone1:   5-10              USD/Ha/year

- Zone2:   10-20             USD/Ha/year

- Zone3:   25-30             USD/Ha/year

For plantation activities:

- Zone1:   8-30               USD/Ha/year

- Zone2:   15-0               USD/Ha/year

- Zone3:   25-50             USD/Ha/year

For mining activities

- research                       5-10               USD/Ha/year

- Survey                           10-20             USD/ha/year

- Feasibility study          15-30             USD/ha/year

- Exploration                  20-700           USD/Ha/year

11. Profit Tax

- Zone1: Exempted profit tax up to 10/6/4 year

- Zone2: Exempted profit tax up to 6/4/2 year

- Zone3: Exempted profit tax up to 4/2/1 year

12. Foreign investment 1992- 2015

Countries

No.of project

Capital (USD)

%

Thailand

8

314,229,760

17.58

China

40

372,183,828

20.82

Vietnam

21

165,614,169

9.27

Japan

13

25,2880,000

1.41

Malaysia

12

63,671,500

3.56

France

7

29,867,268

1.67

S.Korea

6

63,600,000

3.55

Australia

5

285,200,000

15.95

Singapore

3

5,709,699

0.32

india

2

350,350,000

19.61

Other

13

111,712,093

6.26

13. GDP by sections

Sectors

GDP %

2011

2012

2013

2014

2015

Agirculture

39.54

40.65

40.93

38.84

38.12

industries

34.94

34.41

35.45

33.76

34.70

Services

25.52

24.94

23.62

27.40

27.18

Total

100

100

100

100

100

14. Tax policies

- Exemption of import duties on importing the vehicles, machinery, equipment and raw materials directly used in the project

- Exemption of export duty on export products

15. The special investment incentives

The construction investment of hospital, kindergartens, schools, vocational schools, colleges, universities, research and analysis institutions, some of public utility are eligible for additional investment incentives as following

  • land lease or concession exemption

Zone1 = 15 year

Zone2 = 10 year

Zone3 = 3 year

  • additional profit tax exemption for 5 years

16. Other incentives

- Foreigners who invest not less than 500,000 USD in Laos will gain right to purchase residential land

- Investor have right to transfer profit or earning  back home or third countries

- Concession duration for general business investment is unlimited

- The investment capital for general business is not less than 1 billion kip

- The registered capital for concession business is not less than 30% of total capital

17. Document for investment proposal

- Investment application

- Feasibility study

- Environment impact assessment “EIA’’ & social impact assessment “SIA’’

- personal background and copy of passport

- Evidence of company operates in abroad

- Bank relation/ Financial statement articles  

© 2016,Savanakhet Chamber of Commerce and Industry(SCCI),Lao PDR

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