Laos encourages industrial parks to protect environment

The Lao government is encouraging businesses to establish factories in specialized industrial parks in a bid to better protect the environment according to state-run daily Vientiane Times, Monday. Director General of the Industry Department Manohak Rasachack told local media that the government had amended laws regarding industrial processing to encourage businesses to move their production bases to dedicated industrial park areas. "The revised law will give a major boost to the development of industrial parks," Manohak said. Each province has their own individual industrial zones to encourage factories to be built at those locations he added. The National Assembly approved the legal revision last month and it is expected to take effect within the next quarter. The revisions are expected to greatly encourage the relocation of factories into industrial parks. Businesses located within the industrial parks will receive a number of tax incentives including reductions and exemptions. It's expected that infrastructure development within the parks will provide additional incentives to companies that operate there. The laws will make it easier for businesses to establish factories in Laos however there are stringent environmental requirements that must be met. Factories will have to be equipped with systems to reduce water, air and noise pollution. Officials have noted that it will be easier to address these concerns within the confines of an industrial park since the cost of developing environmental protection systems can be shared between developers. The Lao province of Savannakhet is home to one of the most successful industrial parks which accommodates factories from Japanese, Thai and Chinese businesses.