VIENTIANE: The Lao-Asia Telecom State Enterprise will represent the government of Laos in a joint venture that will operate a seaport in Vietnam’s central Ha Tinh province.
The state enterprise has signed agreements on the joint venture and for holding shares in the Lao-Viet International Port Joint Stock Company, which will operate Vung Ang seaport.
The agreements were signed at a ceremony held on Aug 23 by the Deputy Minister of Finance, Phouvong Kittavong and the Director of the Lao-Asia Telecom State Enterprise, Oulaha Thongvantha.
The event was attended by representatives from the line ministries of Works and Transport and National Defence, and the Embassy of the Socialist Republic of Vietnam, members of the Laos-Vietnam Cooperation Committee, and other relevant parties.
Acting on behalf of the Director General of the State Reform and Insurance Department of the Ministry of Finance, Phaythoun Thienglamay said at the ceremony that the Lao government, especially the Ministry of Finance, had finalised an agreement in 2010 on establishing a development company to be part of the operations of the seaport.
This company combined shareholders from many different sectors, including the public and private sectors, and changes to the names and shareholders of the company have been made over the years.
In 2016, the Ministry of Finance finalised an agreement that approved the Lao Logistics State Enterprise as a shareholder on behalf of the Lao government. The state enterprise was also entrusted with operating joint ventures with Vietnam at Vung Ang seaport.
In 2019, the Ministry of Finance signed a joint venture agreement with Petroleum Trading Lao Public Company to create the “Laos-Vietnam Vung Ang Port Development State Enterprise (VDS)” to implement sub-agreements between the governments of Laos and Vietnam on the development of the Vung Ang seaports 1, 2 and 3.
Vietnam also agreed to increase the Lao side’s share holding from 20 per cent to 60 per cent.
In 2023, the government directed the Ministry of Finance to establish a 100 per cent state-owned enterprise, instead of the Lao-Vietnam Port Development State Enterprise, by considering a state-owned company with the potential for funding and technical skills to jointly implement the project with the Vietnamese side.
The Prime Minister’s Office also issued notice no 2014/PM Office on Oct 19, 2020 to order the closure of the Laos-Vietnam Vung Ang Port Development State Enterprise (VDS), in accordance with the guidelines for implementing the results of the 45th meeting of the Cooperation Committee between the governments of Laos and Vietnam, as well as the Lao-Vietnam Cooperation Plan for 2020.
The 100 per cent state-owned enterprise will continue participating with the Vietnamese side for the development of the Vung Ang seaports 1, 2 and 3 by increasing the Lao side’s shares from 20 per cent to 60 per cent.
The government also issued notification no 312/PM Office in February 2024, which selected the Lao-Asia Telecom State Enterprise following research by the Ministry of Finance and in conjunction with agreements with relevant parties.
The state enterprise is qualified for representing the government of Laos in this joint venture in terms of funding, experience and personnel capacity, and its 100 per cent state enterprise status. - Vientiane Times/ANN
