The company plans to build a trading complex including a shopping centre, storage for processed goods and an assembly centre for other products.

The project covers over 100 hectares and has a 68-year concession period.

A ground-breaking ceremony for the construction of the project took place on Monday in the presence of the Minister to the Prime Minister’s Office, Mr Alounkeo Kittikhoun; Deputy Minister of National Defence, Mr Onsy Saensouk; Khammuan province’s Deputy Governor, Mr Bounmy Phimmasone; and President of Jo Bounmy Technology Development Sole Co., Limited, Ms Bounmy Bangonsengdeth.

Other senior government officials, local authorities and the company’s partner representatives were also present.

Speaking at the event, the Vice President of Thakhaek SEZ’s executive board, Mr Nongsavanh Thammavong, said the company had signed a land concession agreement with the SEZ for 114 hectares, for two phases of investment projects.

“In 2015, the company invested US$100 million to build an inland container depot. This year, it is the second phase of the development project with a focus on building a trade centre, and a centre for processed goods, manufacturing and packaging of products,” he said.

The Thakhaek Specific Economic Zone has so far attracted 28 domestic and foreign investors in 16 projects worth over US$12 billion, Mr Nongsavanh told Vientiane Times on Tuesday.

As of June last year, some 12 SEZs offering tax breaks had been established and were operating across the country. These have attracted 503 local and foreign companies with registered capital of more than US$8.4 billion, although this figure falls far short of the target of US$34.5 billion.

At the same event, Adviser to Jo Bounmy Technology Development Sole Co., Limited under the group, Mr Soukkaseum Teyso, said the group would focus on the development of centres for trade as well as manufacturing and warehousing.

“In the second phase of the investment project, we will be targeting 18 activities, such as a vehicle assembly plant, electrical appliance factory, and other activities,” he said.

Located on 1,035 hectares, the TSEZ is divided into 10 sections including, among others, commerce, department stores, restaurants, banking and finance, hotels and entertainment, a convention centre, real estate, and logistics.