ASIA NEWS NETWORK
WE KNOW ASIA BETTER
Lao firm eyes investment in Vietnamese tourism
Publication Date : 19-08-2013
A Lao company is partnering with a Vietnamese firm to invest in a high- class leisure development at a popular tourist area in Tuan Chau sub-district of Ha Long town in Quang Ninh province, Vietnam.
A Memorandum of Understanding (MOU) on the project was signed in Vientiane on Friday by the Director of Chitchareune Construction Company in Laos, Somvang Vongvilay, and Tuan Chau Group Chairman from Vietnam, Mr Dao Hong Tuyen.
The ceremony was attended by Deputy Prime Minister Somsavat Lengsavad along with company officials and representatives from the Lao and Vietnamese governments.
Under the MOU, the two sides agreed to joint investment in construction, development and the operation of hotels, resorts and guesthouses on a four hectare site.
The two parties also agreed to create a joint venture company to run the project in line with Vietnam's regulations.
The two sides will hold further talks on the name of the joint venture company, the investment model, each shareholder's investment, the cost of the project and other details concerning development and investment, before entering into additional agreements.
The two companies will jointly operate development and business operations and be responsible for preparing the necessary documents. They will ensure that they obtain permission to invest according to the stated objectives of the agreement in line with the relevant laws.
The two sides will also be responsible for design, development planning and business operations and will provide their own funding and seek any other funding necessary for development. They will also undertake the administration and management of any properties in the development area.
The MOU will serve as a basis for future discussions and consultations on the details of the next steps to be taken, before the two companies sign a joint investment agreement in line with the laws of Vietnam.
The two sides are required to sign a joint business venture agreement and obtain an investment permit in September and to start construction in October.
The MOU may be changed to suit either party if necessary.