A Lao company is investing US$280 million in a project to develop Vung Ang seaport in Vietnam’s central Ha Tinh province to boost logistics and infrastructure and benefit Laos, neighbouring Thailand and Vietnam and the rest of the world.

The project will also pave the way for the smooth export of domestic goods and import of products by linking landlocked Laos with the outside world.

The Lao government has approved a move by the Petroleum Trading Lao Public Company (PTL), one of the country’s leading private companies, and Lao Logistics State Enterprise to jointly establish the Vung Ang seaport Development Company Limited.

A joint venture agreement was signed by the Petroleum Trading Lao Public Company Chief Exeutive Officer, Chanthone Sitthixay, and the Director of Lao Logistics State Enterprise, Khampheng Sisanga, at an event held in Vientiane on Monday.

The signing was witnessed by the Deputy Minister of Finance, Thipphakone Chanthavongsa, and government and company officials.

Chanthone told the local media his company will hold an 80 per cent share in the newly established company while the rest of the stake will be held by the Lao Logistics State Enterprise.

“The development of this seaport has been carried out by the governments of Laos and Vietnam for a while but progress has been slow due to many factors. So our company will voluntarily represent our government to continue the project,” he said.

This project is divided into two phases and a total of US$280 million is expected to be spent for developing infrastructure inside the port, Chanthone said.

“We hope our company will be able to begin work on the project at the beginning of next year as soon as the legal process is completed,” he said.

Laos currently spends much more than neighbouring countries on logistics capital for exporting goods, he explained.

“I think it is time for us to move forward because Asean is now integrated, and the economic corridor is there in the central provinces of Laos and Vietnam and the eastern part of Thailand,” Chanthone said.

He called on the government to be active in backing a Lao company to develop a seaport outside the country to bring prosperity to the Lao people and to contribute to the growth of the domestic economy.