On August 7, in Vientiane, the Lao Ministry of Industry and Commerce (MoIC) and JSK Sole Co., Ltd. held a signing ceremony for the memorandum of understanding on the feasibility study of the Vientiane-Xaythany Industrial Park Development Project.

The ceremony was attended and witnessed by Minister of Industry and Commerce Malaythong Kommasith, leaders of the Vientiane Capital Administration Committee, and representatives of relevant departments, agencies and businesses. Representatives involved in the signing included Deputy Minister of Industry and Commerce Chansavang Bounyong and Anan Vongphachan, Chairman of JSK Sole Co., Ltd.

The signing ceremony for the memorandum of understanding on the feasibility study of the Vientiane - Xaythany Industrial Park Development Project.

To comprehensively assess the scale and strategic significance of the project for the socioeconomic development of Vientiane, three key aspects can be highlighted.

First, the project rests on a solid legal foundation created by macro-level institutional reforms. The Vientiane - Xaythany Industrial Park is the fifth project to officially enter the feasibility study stage through the signing of an MOU since the Government issued Decree No.313/CP on March 6, 2025, on the management and development of industrial parks.

The introduction of Decree No.313/CP established a more coherent legal framework, addressing bottlenecks related to investment procedures, tax incentives and environmental standards. JSK Sole Co., Ltd.’s decision to use 100% of its own capital to implement the project demonstrates the private sector’s strong confidence in the Lao Government’s long-term policy direction and underscores an effective model of cooperation between an enabling State and the private economic sector.

Second, the project benefits from an advantageous spatial plan along a satellite urban development corridor. Covering a total area of 130 hectares, the project is systematically planned into two strategic zones in Xaythany district, one of Vientiane’s key economic areas with a rapid pace of urbanization.

Zone A will cover 50 hectares in Dongmakkhai village, while Zone B will span 80 hectares in Dongkhuay village.

Locating the industrial park along interregional transport corridors will help ease pressure on Vientiane’s inner-city transport infrastructure while generating strong economic spillover effects for suburban areas. The location also provides favorable conditions for the development of an integrated industrial ecosystem, the optimization of logistics costs and direct connectivity with cross-border economic corridors.

Third, the project is expected to become a driver of economic restructuring while helping address social welfare and employment needs.

Beyond its financial scale, with total investment exceeding USD 150 million, the project carries considerable social significance as it is expected to create jobs for more than 5,000 local workers and attract over 80 secondary investors.

Its list of priority industries reflects a vision for deeper industrialization, focusing on sectors with high added value, including agro-processing for export, supporting industries for textiles and garments, electrical and electronics industries, as well as mechanical engineering and the assembly of environmentally friendly automobiles.

The presence of these industries is expected to contribute to shifting the labor structure from traditional agriculture toward the urban industrial and service sectors, while encouraging high-quality human resources to remain and work in their home locality.

Under the agreement, the project’s feasibility study phase will last 24 months from the date of signing.

This period will serve as an important preparatory stage for the investor to work closely with relevant authorities to complete the environmental impact assessment (EIA), detailed planning for technical infrastructure, including electricity, water supply and centralized wastewater treatment systems, as well as a transparent compensation and site-clearance plan.

The successful signing ceremony is expected to pave the way for a new industrial growth pole in Vientiane, contributing to the realization of Laos’ goal of industrializing and modernizing its economy in the new stage of development.