If the project is approved by the Lao government, the total value of scheme could amount to almost US$2 billion, according to the Ministry of Public Security.

The Memorandum of Understanding (MOU) was signed in Vientiane on Tuesday between the ROK company, known as Oriental Pearl Company Limited and the General Logistics Department of the Ministry of Public Security.

Chief of the General Logistics Department Colonel Kikeo Naovalath and Director General of the Production-Business Management Department Mr Bounpha Nanthavong represented the Lao side to sign the MOU.

The company side was signed by President of the Oriental Pearl Company Limited Mr Kim Won Pyo and the company representative Jeong Tae Jin.

The event was witnessed by officials from both sides.

The MOU will allow the two sides to carry out a project survey and design and prepare for a joint venture agreement for the project.

The project is located at the KM 62 area in Phonhong district, covering an area of 1,200 hectares which are under the management of the Ministry of Public Security.

The Ministry of Public Security and the Oriental Pearl Co Ltd have initiated the survey and feasibility study for the project since June 2015.

Once the project is approved by the Lao government, the said KM 62 area will be urbanised as a new town in Vientiane province which could contribute to boost economic growth and generate job opportunities for local people.