Build a demonstration base to promote Laos' industrialization (jointly build the "the Belt and Road", the first site)

Aerial view of the Vientiane Saiseta Comprehensive Development Zone in Laos.

Panimale Tong Photography

Driving northeast from the center of Vientiane, the capital of Laos, takes about 30 minutes to reach the Saiseta Comprehensive Development Zone. Within the development zone, there are lush tropical plants and neatly arranged factories. Saiseta Comprehensive Development Zone is the only national level overseas economic and trade cooperation zone of China in Laos, and also a national level economic special zone of Laos. As an early harvest project of the "the Belt and Road" construction plan, the Sethta Comprehensive Development Zone plays an important role in promoting the industrialization process of Laos and improving the level of economic and trade cooperation between China and Laos.

131 companies settled in, filling gaps in multiple fields

The factory of Beide Clothing Co., Ltd. is located in the Saiseta Comprehensive Development Zone, covering an area of over 20000 square meters. Entering the factory workshop, the reporter saw production lines one by one, and local employees were rushing to produce clothing for export to Europe.

"We have introduced advanced automatic cutting machines, computer sewing equipment, etc., and 25 Chinese management personnel have provided training and guidance. We adopt lean production management and production execution systems, committed to building a first-class clothing factory in Laos," Sun Linhua, General Manager of Bede Clothing Co., Ltd., told reporters.

Bede Clothing Group, headquartered in Jiangsu, China, has previously established factories in Yangon, Myanmar and Kampong Speu Province, Cambodia. Two years ago, the group came to Laos and invested in setting up a factory in the Saiseta Comprehensive Development Zone. The factory has 40 production lines, employs 2000 employees, and designs an annual production capacity of 20 million sets of various knitted clothing. The products are sold to the European, American, and Japanese markets.

Lao employee Lida comes from the northwestern province of Sayaburi. Although it was only after arriving at the factory that she first came into contact with modern production equipment, she quickly mastered operating techniques through training. "Working here is guaranteed, meals are subsidized, dormitories and utilities are all borne by the company. Apart from leaving some pocket money, most of the salary can be sent back home. I hope Shayaburi can also have such a modern factory in the future," Lida said.

The functional positioning of Saiseta Comprehensive Development Zone is "one city and four zones", which refers to the carrying area of Vientiane Industrial Ecological New City and international production capacity cooperation, the demonstration area of China Laos cooperation development, the core area of Vientiane New City, and the livable area of harmonious living environment. At present, the development zone has attracted 131 enterprises from multiple countries and regions such as China, Japan, Singapore, and Thailand to settle in, with a total investment of over 1.5 billion US dollars and attracting 6000 migrant workers. After all the enterprises that have settled in the development zone are put into operation, it is expected that the annual total output value will exceed 1.8 billion US dollars, creating over 10000 job opportunities.

Laos China Railway Co., Ltd., Bede Clothing Co., Ltd., Laos United Pharmaceutical Group Co., Ltd., New Hope Co., Ltd.... Are joint ventures carrying the hope of industrialization in Laos. "The development zone has introduced multiple well-known enterprises, helping Laos fill the gaps in multiple manufacturing fields such as electronic product manufacturing, biopharmaceuticals, agricultural product processing, and textile processing, significantly promoting Laos' industrial development," said Tong Luo, Director of the Investment Service Center of the Saiseta Comprehensive Development Zone.

Building low-carbon demonstration zones and accumulating experience in green development

Green trees, white clouds, blue sky. New energy vehicles with blue bodies, new energy buses with white bodies, and trucks occasionally pass by on the roads of the development zone.

Relying on the Saiseta Comprehensive Development Zone to carry out the construction of low-carbon demonstration zones is an important measure to implement the action plan for building a community with a shared future between China and Laos. In recent years, the Comprehensive Development Zone has been actively promoting the construction of low-carbon demonstration zones. Solar street lights, new energy buses, and environmental monitoring equipment can be seen everywhere in the development zone.

The reporter boarded a new energy vehicle, which was cool and comfortable inside. Driving within the development zone, the solar smart street lights on both sides of the road are particularly eye-catching. There are over 3000 sets of these solar street lights, all from China.

"At present, the new energy fleet in the development zone includes 12 buses, 8 cars, and 8 trucks. Enterprises in the park have a significant demand for transportation of building materials, raw materials, mechanical equipment, and finished products, with an average daily cargo volume of 1000 to 1500 tons. In the future, we will continue to introduce clean energy trucks," Xiong Jun, the general manager of Laozhong United Investment Co., Ltd., an investor in the Saiseta Comprehensive Development Zone, told reporters.

The Saiseta Low Carbon Demonstration Zone is a South South cooperation project launched by the governments of China and Laos based on the Saiseta Comprehensive Development Zone to address climate change. It is one of the "10 Low Carbon Demonstration Zones" cooperation projects launched by China in developing countries. According to the Memorandum of Understanding signed between China and Laos, the two sides will carry out a series of cooperation, including promoting the transformation of low-carbon lifestyles through low-carbon transportation, and improving the level of green infrastructure construction through low-carbon lighting.

"We hope to accumulate valuable experience in green development for other regions of Laos through the construction of the Saiseta low-carbon demonstration zone," said Benkan, Minister of Natural Resources and Environment of Laos. The Lao government encourages the use of clean energy to promote economic and social development towards green and sustainable directions. "The implementation of the Saiseta Low Carbon Demonstration Zone project plays an important role in Laos' goal of achieving net zero carbon emissions by 2050, and will effectively promote Laos' sustainable economic and social development."

"Leading Parks with Roads, Promoting Parks with Parks" to Assist in Realizing Industrial Upgrading

The Vientiane South Station of the China Laos Railway, 10 kilometers away from the Saisita Comprehensive Development Zone, is a busy scene. The huge boom of the crane accurately grabs the container loaded with goods and lifts it onto the international freight train of China Laos Railway. Along the China Laos railway, Laos' agricultural products, manufacturing products, etc. embarked on the journey to China.

Since the opening and operation of Laos Railway in December 2021, Laos has further integrated into the regional interconnection network, and the development conditions of Sethta Comprehensive Development Zone have become more perfect. "Now, when transporting materials from Kunming to Vientiane, customs clearance can be completed within 10 hours, which provides an important guarantee for the export delivery of clothing." Sun Linhua said that the China Laos Railway provides a stable and reliable mode of transportation. Tongluo said: "With the opening and operation of the China Laos railway, logistics in the development zone has become more convenient, costs have been significantly reduced, and transportation and production methods have become more green and environmentally friendly."

"Most of the enterprises that have settled in the development zone are engaged in processing trade, with raw materials and sales markets' at both ends', paying particular attention to the convenience of transportation. Xiong Jun said that the development zone has a customs service center, where the goods of the settled enterprises can be exported to China through various transportation methods after completing the necessary customs procedures.". With logistics becoming more convenient and costs significantly reduced, the development advantages of Saiseta Comprehensive Development Zone have become increasingly prominent, and many enterprises plan to expand production.

It is reported that the headquarters of the Lao China Railway Company has also settled in the Saiseta Comprehensive Development Zone, which will further promote the development of the zone and achieve a win-win situation of "road leading park, park promoting road".

With the official implementation of the Regional Comprehensive Economic Partnership Agreement in January last year, foreign-funded enterprises entering the Saiseta Comprehensive Development Zone have enjoyed more preferential policies. Chen Ting, the person in charge of Laos United Pharmaceutical Group Co., Ltd., stated that the effective implementation of RCEP has reduced the company's production and sales costs, making it more convenient for enterprises in the development zone to process and export products.

The Vice Chairman of the Lao National Assembly, Songma Pensena, stated that the Saiseta Comprehensive Development Zone is a national level cooperation project jointly determined by the governments of Laos and China. He hopes to build the development zone into a model of Laos as an economic special zone, and looks forward to further strengthening relevant cooperation between Laos and China, driving the development of small and medium-sized enterprises, helping Laos achieve industrial upgrading, and benefiting more Laotian people.