Smart City

Project Background

The Modern City Development Project, located in Hadxayfong and Xaysettha districts of Vientiane Capital, is an integral part of the Vientiane Capital Strategic Development Plan (2015–2030).

The project area was specifically allocated from vacant land identified as the highest elevation in Vientiane Capital. This strategic location is a flood-free zone, offering a significant advantage over the current city center, which is situated in a low-lying area along the Mekong River. The existing capital, established in 1560 and now over 450 years old, faces partial flooding annually due to its topography. Consequently, the leadership of Vientiane Capital has designated this new high-ground area as the primary zone for urban expansion and modernization.

Consequently, Duangchalern Development Construction Group Co., Ltd. has received full support from the Vientiane Capital authorities, following the approval of the Prime Minister of the Lao PDR as stipulated in the Power of Attorney No. 78/PM, dated July 13, 2020. Furthermore, the company has entered into a Memorandum of Understanding (MOU) with the government, represented by the Ministry of Planning and Investment, to conduct a comprehensive feasibility study for the urban expansion project within Vientiane Capital.

Project Objectives

The primary objective of the project is to develop the "Vientiane 450-Year Modern City" covering an area of 2,568 hectares across 2 districts and 10 villages. The goal is to transform this area into a modern urban hub with international socio-economic connectivity. This will be achieved through the efficient use of resources and the enhancement of the citizens' quality of life to reach standards comparable to international levels.

• To promote comprehensive development across various sectors, including: industry, residential areas, agriculture, business administration, commerce, diplomatic residences, educational zones, public health, forestry, services and expressways, sports and tourism, the "ASEAN City" zone, condominiums, housing estates, and public parks.

• To establish international socio-economic connectivity in order to attract both domestic and foreign investment.

• To optimize the use of vacant land by transforming it into a modern, civilized economic zone equipped with comprehensive infrastructure.

• To generate government revenue through customs duties, taxes, and other administrative fees.

• To create employment opportunities for the local population and serve as a hub to accommodate the growing future labor force.

Relevant Legal Framework

• Power of Attorney from the Prime Minister, No. 78/PM, dated July 13, 2020.

• Memorandum of Understanding (MOU) between the Ministry of Planning and Investment and Duangchalern Development Construction Group Co., Ltd., dated August 7, 2020, and the amended version No. 22, dated March 21, 2021.

• Decision of the Deputy Prime Minister and Minister of Planning and Investment, No. 1719/MPI, dated October 21, 2020.

Market Opportunities

• Central Hub of ASEAN: The Lao PDR serves as the central heart of ASEAN, fostering trade and investment connectivity with major economies both within the region and globally.

• Global Economic Integration: Laos has signed bilateral investment treaties with 27 countries, is a full member of the World Trade Organization (WTO), and is deeply integrated into the ASEAN Economic Community (AEC).

• Strategic "Land Link" Location: Positioned as a vital gateway connecting China, Vietnam, Thailand, and Cambodia, transforming the country from land-locked to a primary "Land Link" for regional trade.

• Economic Liberalization: The Government of the Lao PDR is committed to economic liberalization and expanding opportunities for the private sector through the updated Investment Promotion Law (IPL) of 2017.

• Special Economic Zones (SEZs): The establishment of SEZs serves as a catalyst for new opportunities, driving robust and sustainable economic growth.

• Vibrant Business Ecosystem: These Special Economic Zones promote a dynamic ecosystem that enables both local and international investors to transform innovative ideas into competitive, high-growth businesses.

Strengths, Challenges, and Opportunities

Strengths

• Prime Strategic Location

  • Ideally situated in a high-potential area.

  • Proximity to the Lao-China Railway Station.

  • Close to the 1st Lao-Thai Friendship Bridge.

  • Direct access to major arterial roads connecting to both Northern and Southern Laos.

• Extensive Experience in the Construction Industry

  • Long-standing history and proven track record in the business.

  • Specialized expertise in road networks, building construction, and large-scale infrastructure projects.

• Labor Efficiency and Workforce Quality

  • Highly skilled labor force with deep experience in construction.

  • Systematic and disciplined operations, ensuring high productivity and project efficiency.

• Financial Strength and Stability

  • Robust internal capital and liquidity.

  • Strong capability to access diverse funding sources and financial credit lines.

• Government Trust and Credibility

  • Successfully awarded multiple concession projects by the public sector.

  • Demonstrated reliability with a 100% completion rate for all government-concessioned projects.

Challenges

Challenges

• Project Complexity

  • The project is highly complex and multifaceted, requiring extensive cooperation and specialized expertise from a wide range of stakeholders and professional sectors.

• Marketing and Promotion

  • Executing effective marketing strategies requires a highly experienced and professional marketing team to reach the target audience and attract high-value investors.

Challenges

Opportunities

• International Integration

  • Full membership in the World Trade Organization (WTO), the ASEAN Economic Community (AEC), and the Regional Comprehensive Economic Partnership (RCEP).

  • Strong economic recovery following the COVID-19 pandemic.

• Political Stability

  • A stable and consistent political environment conducive to long-term investment.

• Supportive Policies

  • Transparent, clear, and continuous investment promotion policies provided by the government.

• Competitive Labor Costs

  • Labor costs remain highly competitive compared to neighboring countries in the region.

Modern City Visual Simulations

Project Master Plan

ommercial and Investment Zone

Modern Industrial and Processing Zone

Logistics and Integrated Transport Services Zone

Residential Zone: Condominiums, Housing Estates, and Related Developments

Integrated Service Zone

Healthcare and Modern Wellness Zone

Education, Research, and Development (R&D) Zone

ASEAN City and Diplomatic Precinct

Green Route