In the Pakxe-Japan Specific Economic Zone in Champassak province alone, more than 700 Lao workers have been employed, of whom 100 have returned from Thailand.

Champassak Provincial SEZ Authority chairman Khamphon Nuansengsy told Vientiane Times yesterday (July 13) that his authority conducted a survey recently and found that many more Lao people wanted to return to work in their hometown as long as jobs were available.

“Our survey found that many have come to work in our SEZs and many more will follow suit if more businesses open in our SEZs,” he said.

“But one of their problems is that the wages offered by the SEZs in Laos, including the Pakxe-Japan SEZ, are still low compared to the rising cost of living. I think if they can earn about 1.5 to 2 million kip (US$182 to US$243) or more a month, most of them will come to work in our province.”

As the minimum wage in Laos is set at only 900,000 kip, some workers currently earn only a little over 1 million kip.

Khamphon said provincial authorities would try to negotiate with companies investing in the SEZs to ensure higher wages were paid.

“Many Lao people have the skills required by companies and consequently they should be paid more,” he added.

“Another important issue is that companies investing in our province are obliged to train Lao workers prior to setting up their factories.”

Khamphon said one of the most important tasks for Champassak province was to circulate information about employment opportunities so that Lao nationals in Thailand were aware of them.

Some estimates put the number of Lao workers currently in Thailand at around 200,000.

The Pakxe-Japan SEZ is fully recognised by the governments of Laos and Japan, and Champassak authorities wanted to build this zone as a model of SEZ development where local people are employed.

Champassak provincial authorities will cooperate with their Japanese partners to improve labour skills so locals can work in SEZs.

Champassak province currently has three Specific Economic Zones including the Pakxe-Japan SEZ.

The other two, which are in the initial stages of development, are the Champa Nakhone SEZ in Pakxe district and another at the Vantao-Chongmek border crossing in Phonthong district.

The Pakxe-Japan SEZ was established in August last year. It covers 195 hectares and extends into Pathoumphone and Bachiengchaleunsouk districts.

The project has an expected total investment of US$62 million and a land concession period of 50 years.

The Pakxe-Japan SEZ aims to facilitate and attract foreign direct investment, especially from Japanese companies, to establish and operate production facilities, businesses and services for domestic supply and export as well as boost local employment prospects for Lao nationals.

The Japanese developer is installing infrastructure in the zone including roads and offices with many Japanese companies expected to locate factories there once the infrastructure is in place.