Vientiane Logistics Park (VLP) project is one of the priority actions plans, which the Lao Government has formulated in the Logistics Development Strategy (from 2016 to 2020). This flagship project will drastically turn Lao PDR into the land-linked country of the GMS, since this strategic location will serve as the distribution hub between ASEAN and China after the Lao-China railway project is completed in 2021.
The project was initiated from the studies of JICA in 2015 and has been carried forward by Sitthi Logistics Lao Co., Ltd, an affiliated company to Petroleum Trading Lao Public Company (Petrotrade), a part of the Phongsavanh Group in 2019 through the MOU agreement with the Lao Government.
After the completion of the studies, the Concession Agreement between the Lao Government and Vientiane Logistics Park Company Limited (VLP Co., LTD) was finally signed on July 3rd, 2020, the deal that gives VLP Co., LTD the right to operate under a PPP scheme of Thanaleng Dry Port and Vientiane Logistics Park project for a period of 50 years.
To achieve its goal, VLP Co., Ltd has initiated a strategic partnership project with major regional players in the development of Thanaleng Dry Port and Vientiane Logistics Park that includes: Kerry Logistics of Hong Kong, COSCO Shipping Line of China, PLG Integrated Logistics of Singapore, YPL who operates Chong Qing Dry Port in China and Nippon Express of Japan.
To execute the directive of the Lao Government defining collection and distribution points in each region that connect with the neighbouring countries. And the connection points to secure and facilitate 2 ways cargos which will focus on construction of International Logistics Parks in 3 areas: Vientiane Capital, Luang Namtha and Savannakhet. The construction of 6 regional logistics parks along Laos to Vietnam and Laos to Thailand borders.
Establish commercial viability by fulfilling the purpose of trade, transport facilitation through single window and enhance competitiveness of Lao PDR in the area of transport and logistics by maximizing the strategic location of Vientiane Logistics Park, diversifying the range of service to cover more value-added services.
Reduce logistics cost which is the main bottleneck of poverty eradication for Lao PDR, paving the way for SME operators to export their products easier through consolidation center and Less than Container Load shipping (LCL).
Leverage Government’s revenue collection efficiency by fully control and management of cross border and transit movement of commercial conveyance through technology and advanced systems, thus allowing integrity and transparent revenue collection.
ASEAN regional connector linking to global economic powerhouses
Develop green, modern and smart Logistics Park that synergize the strength of logistics, the proximity to global production bases and the preferential status of Lao PDR.
Leverage international trade and cross border transport of Lao PDR through simplification / standardization of processes and facilitation of customs transit
Develop Lao human capital to support investors through transfer of know-how from advanced economies through partnership and alliance with regional and global players