Laos supports investment in Asia-Potash International Intelligent Industrial Park in Khammuan for China

An Investment Cooperation Memorandum worth US$835 million has achieved fruitful results in the first overseas industrial investment promotion event of the Asia-Potash International Intelligent Industrial Park in Khammuan province.

Minister of Industry and Commerce, Mr Malaythong Kommasith (10th from left), witnesses the signing of an investment agreement with businesses operating in the Asia-Potash International Intelligent Industrial Park in Khammuan.

From July 3-6, an Investment Promotion Conference and Signing Ceremony of the Investment Cooperation Memorandum of the Asia-Potash International Intelligent Industrial Park in Khammuan province, sponsored by the Ministry of Industry and Commerce and the Khammuan Provincial Government, were held in Guangzhou, China.
Different from the previous infrastructure construction investment promotion of the Lao government, this Investment Promotion Conference was Laos’ first large-scale industrial investment promotion event to be held overseas.
It consisted of three parts: high-level government-enterprise talks; enterprise investment promotion symposium; investment promotion conference and the signing of the investment cooperation memorandum.
Highlighting the Asia-Potash International Intelligent Industrial Park established by the government as a promising hub for new development, it presented over 100 well-known Chinese enterprises, investors and financial institutions with the opportunity to witness that Laos is embracing the world and striving for development.
The investment promotion conference was pragmatic, efficient and fruitful. The event resulted in the signing of 10 projects with a total investment of US$835 million (about 15.1 trillion kip) directly at the venue, involving industrial chain projects such as chlorine-alkali, bromine deep processing, zinc-bromine flow battery energy storage as well as emerging industry projects such as biological science and intelligent manufacturing.
After all the projects are put into operation, the total output value will exceed US$2 billion (about 36.2 trillion kip).
This is a concrete measure to thoroughly implement the important instructions of the Party, the government and the National Assembly on stabilising the economy, attracting foreign investment, increasing foreign exchange and replacing imports.

Moreover, it is also a practical action based on the consensus on Laos’ economic development and another milestone in Laos’ economic development process.
Chairman of Asia-Potash International, Mr Guo Baichun, said the current difficulties facing Laos’ economy are temporary, and development is the most effective solution.
By maintaining a stable and consistent opening-up policy, Laos’ unique advantages will attract increasing investments, and all problems will be readily solved.
In this regard, Asia-Potash International is willing to provide support and assistance.
Laos possesses remarkable advantages in terms of resources, energy, labour, and market. By utilising the Asia-Potash International Intelligent Industrial Park as a platform to attract foreign investments, the Lao government has garnered significant attention from numerous Chinese enterprises, investors, and financial institutions.
It is suggested that the Lao government seize the favourable opportunity of the overseas layout of Chinese enterprises, make full use of Laos’ unique advantages to link up with the global market, and stimulate the vitality and endogenous development momentum of Laos’ economic development.
Numerous domestic enterprises have shown keen interest in investing in and collaborating with the non-potash industries within the Asia-Potash International Intelligent Industrial Park.
If these investments materialise, it will not only reduce imports but also earn foreign exchange through exports, leading to an increase in foreign exchange reserves and residents’ income. This will not only solve the existing problems faced by Laos but also lay the foundation for future development.
Laos’ Minister of Industry and Commerce, Mr Malaythong Kommasith, said
The Lao government will continue to create a more open and inclusive investment and business environment, attract more foreign-funded enterprises to invest in Laos, support them to grow and thrive in the country, and bolster the economic development of Laos.
Mr Malaythong Kommasith said that despite the ongoing global economic recession, Laos has managed to maintain a commendable economic growth rate of 4.8 percent.
Within the framework of both the Belt and Road Initiative and the Lancang-Mekong Cooperation, leaders from both countries are committed to enhancing their cooperation mechanisms and establishing a community with a shared future across all domains.
“We encourage Chinese investors to invest in Laos, encompassing sectors such as mining, industry, agriculture, tourism, and transportation. We hope that through the platform of the Asia-Potash International Intelligent Industrial Park, more investors can be attracted to make investments in Laos.”
The Governor of Khammuan province, Mr Vanhxay Phongsavanh, described in detail the three core advantages of Khammuan: energy and minerals; agriculture and forestry; services and tourism.
He said Asia-Potash International is a rapidly growing enterprise with outstanding development speed and quality in Khammuan and even Laos. Its investment projects account for the largest proportion of foreign investment in the province.
The Asia-Potash International Intelligent Industrial Park has a broad development prospect, and enterprises and investors from China are most welcome to invest in the province. Khammuan province is committed to providing utmost convenience and support for these endeavours.
On the same day, the Investment Promotion Conference and Signing Ceremony of the Investment Cooperation Memorandum of Asia-Potash International Intelligent Industrial Park officially commenced.
The Khammuan Provincial Government signed an investment cooperation memorandum with the enterprises settled in the park, witnessed by Minister Malaythong Kommasith, Governor Vanhxay Phongsavanh, and other important guests.
Minister Malaythong Kommasith extended a warm invitation to entrepreneurs and investors from China.
Laos and China are friendly neighbours separated by a narrow strip of water, he said. He acknowledged that China has become the largest foreign investor in Laos and that the two sides have the potential to develop industry and modern agriculture on the basis of the principles of co-creation, sharing and mutual benefit.
In Laos’ Processing Industry Development Plan for 2021-2025, the mineral and chemical processing industry has been designated as one of the eight priority industries.
Additionally, Khammuan has been identified as one of the five economic development centres in Laos.
These strategic considerations provide strong support for the construction of Asia-Potash International Intelligent Industrial Park.
The Lao government will provide comprehensive support for the development of the industrial park. Through the active participation of all stakeholders, it is anticipated that the industrial park will become an outstanding model for the development of a comprehensive mining industry, contributing to national fiscal revenue generation, local development and reputation enhancement.
Governor Vanhxay Phongsavanh delivered a speech in which he expressed his strong affirmation of the significance of the Asia-Potash International Intelligent Industrial Park.
He said the industrial park represents an innovative approach to resource development, which will help improve the local industrial system and play a decisive role in driving the economic development of Khammuan and Laos.
Leveraging its three core advantages, Khammuan province will establish the Asia-Potash International Intelligent Industrial Park as the focal point for development, facilitating seamless integration and collaboration with more high-quality enterprises in China.
Laos sincerely invites all Chinese entrepreneurs and strategic investors to investigate and make investments in the country so as to continuously expand and strengthen the industrial chain, create a model for economic cooperation between Laos and China, and realise a new multi-party win-win development model.
Mr Ma Yingjun, General Manager of Asia-Potash International, expressed his heartfelt thanks to the Lao government on behalf of Asia-Potash International.
He said that Asia-Potash International has become an international potash fertiliser enterprise with the largest amount of potash resources in Asia, the largest scale in Southeast Asia and the fastest production speed in the world.
Behind the achievements of “Asia-Potash Speed” and “Laos Miracle” lies the strong support, concern and guidance given by the Lao government to Asia-Potash International.
As a landmark project under the framework of government-enterprise cooperation between China and Laos, the industrial park project integrates industrialisation, urbanisation and modern agricultural construction, and comprehensively promotes the accelerated development of the service industry.
It effectively enhances the sustainable development capabilities of enterprises and promotes Laos to form an industrial pattern that reduces imports while earning foreign exchange through exports.
On the fast-growing fertile land for investment in Laos, Asia-Potash International is confident that it can inject new momentum into cooperation between China and Laos.
Mr Tong Yongheng, Deputy General Manager of Asia-Potash International and Head of the Laos Potash Fertiliser Base, said the Asia-Potash International Intelligent Industrial Park, based in the Khammuan, leverages its unique advantages in resources, energy, market access and cost-effectiveness to open up to and bring together global top enterprises.
The development model of industrial clustering will generate a strong synergy effect among various industries.
The park consists of three major sections: the potash fertiliser industrial park, the non-potash industrial park, and the Asia-Potash town. It covers a total area of 2,000 hectares and is expected to attract a total investment of US$4.31 billion. At present, it is at the stage of investment promotion.
It is estimated that by the end of 2026, the medium-term project construction will be completed, and the salt chemical industry matching the scale of 5 million tons of potash fertiliser will be built; the construction of all projects is expected to be completed by the end of 2028.
Mr Cao Lixiang, Chairman of Hengguang Technology, said the chlorine-alkali project in the Asia-Potash International Intelligent Industrial Park is their first overseas investment project.
At present, the construction of Phase I ionic membrane chlorine-alkali construction project with an annual output of 30,000 tons is progressing rapidly and is expected to be completed by the end of September this year.

By Times Reporters
 (Latest Update July 14, 2023)