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Khammouane, Lao PDR

Welcome to Khammouane

Source of Information: Lao News Agency: http://kpl.gov.la/En/Page/Footer/Khammouane.aspx (Accessed 15 Aug, 2017)

Khammouane (Lao: ຄໍາມ່ວນ) is a province of Laos, located in the center of the country. Its capital lies at Thakhek. The central province of Khammouane is located in the middle between Borikhamsay at the north and Savannakhet at the south. Khammouane province also shared a border with Quan Binh Province, Vietnam at the east and Nakhon Phanom, Thailand to the west.

Khammouane province has a total land area of 16,315 km2, of which 46% consists of plains, 35% of the land is mountainous, and 19% is plateau.

Khammouane province has a total population of 392,100. The current population growth rate is 2.1% while the population density is 24 people/km.* The majority of the population is Lao, with ethnic minorities of Phuan, Phutai, Kaso, Saek, Yor, and Yuan. There are 588 villages with 61,505 households.

The main work of people here is farming. Laos was divided into 3 Kingdoms since AD 1770 until the French colonized the country for the first time in AD 1893 and the second time in AD 1948, while in AD 1975, the Americans administered Laos. Before then, Khammouane province, as well as Thakhek were merely called Muang Tha and Khek was added as many people moved down from the north to trade. These people were called guests (khek) and the town was called the city of guests, or the port visited by many guests, and this name has therefore remained until the present time. The province possesses river and land transport routes such as the road No. 13 south passing through this town to the south, the road No.12 leading to Vietnam, with limited air transport.

In terms of culture and religion (Buddhism), the province displays special features where the population worships that Sikhottabong, (That Muang Kao). Thakhek or Guest Landing is the capital of Khammouane province. The city’s remaining Franco-Chinese architecture, including a simple fountain square, is one attraction of this commercial center. At Thekhek’s market, you will find all sorts of products for sale, including gold and silver, while the Khammouane Museum features important historical and archaeological artifacts. At Thakek, tourists can cross the Mekong River to Nakhon Phanom, Thailand. Around the Thakek city, you will find many attractions to keep you busy. That Sikhotabong stupa, one of the most important religions sites in Laos, lies just 8 Km to the south of Thakek.

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Name of the province Country Provincial Logo / Symbol
Khammouane Lao People's Democratic Republic N/A
Provincial Map Land Area Bordering Provinces / Countries

Source Mekong Institute: http://portal.gms-eoc.org/uploads/resources/2440/attachment/Mekong_Development_Report_r261016.pdf

[Photo Format: JPG / GIF / PNG Size: not over than 500 KB] 		16,315 km2 North: Bolikhamsai Province, Lao South: Savannakhet Province, Lao East: Nakhon Phanom Province, Thailand West: Hà Tĩnh Province, Quảng Bình Province, Vietnam
Temperature (℃)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20.2 22 24.8 27.5 28.1 28 27.6 27.4 26.5 25.1 23.4 20.8
Total Amount of Rain
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
9 35 44 87 288 394 680 626 405 103 21 13

See sample at https://en.wikipedia.org/wiki/Nakhon_Phanom_Province, http://www.phanom.climatemps.com/

Source: https://en.climate-data.org/location/996953/ (Accessed 15 Aug, 2017)

Source: https://www.worldweatheronline.com/khammouane-weather-averages/savannakhet/la.aspx (Accessed 15 Aug, 2017) and Mekong Institute: Mekong Development Report 2016: http://portal.gms-eoc.org/uploads/resources/2440/attachment/Mekong_Development_Report_r261016.pdf (Accessed 15 Aug, 2017)

Khammouane Province, Lao PDR contains a significant lowland area. Steeply climbing upland forest found in the northeast area bordering Vietnam experiences higher precipitation and lower temperatures than the rest of the province. Khammouane is projected to experience some of the largest increases in precipitation within the Lower Mekong Basin with annual precipitation increasing by 8 – 18%. In comparison, temperature increases are mostly moderate across the province (between 5 - 8%) except for the mountainous terrain to the northeast, which will experience increases in temperature up to 16%.

Source: http://www.mekongarcc.net/sites/default/files/province_profile-khammouan_press.pdf (Accessed 15 Aug, 2017)

Provincial Policy / Strategy

Lao P.D.R in GMS, not only for enhancing external cooperation in sub-region but realizing the Lao Government overall objectives, including promoting sustainable economic growth, equality and poverty reduction, through promoting Economic Integration and Enhancing Connectivity in the region.

For Khammouane province, its capital city “Thakek” district is the commercial area. The government has prepare many mega project in order to make Thakek becoming another the business center of the country.

  1. The third friendship bridge:
  2. Phu khio City Specific economic zone (Phu khio City )
  3. Plan to develop the “Thakek Dankham Special Economic Zone” 

Source: Dr. Bounthavy Sysouphanthong, Deputy Ministerม Ministry of Planning and Investmentม Lao P.D.R.

Demography

Source of Information : Officer in Ministry of Commercial Office, Khammouane, Lao and The 4th Population and Housing Census (PHC) 2015: http://www.lsb.gov.la/PDF/PHC-ENG-FNAL-WEB.pdf(Accessed 15 Aug, 2017)

Total Population Population Density (km2) Ratio of Male of the total Ratio of Female of the total
392,052 24 49.68%
(194,796 persons) 		50.32%
(197,256 persons)
Age from 0-18 Years Old Range of Age from 19-49 Years Old Range of Age from 50-60 Years Old Range of Age from 60 and over Years Old
 N/A N/A  N/A N/A
Name of Major Ethnicity 1 Name of Major Ethnicity 2 Name of Major Ethnicity 3 Name of Major Ethnicity 4
Name : Lao Loum ( low lander)
Ratio in %: 		Name : Phouthai
Ratio in %: 		Name : Vietnamese
Ratio in %: 		Name : Chinese
Ratio in %:

Business Associations

Industries and Economic Zones

Phou Khyo specific economic zone was official established in Khammouane province in 2010 by VS group, local investor, who invests 100% for the value of contract of 708 million US dollars. The main objective is to develop this zone to become new town with commercial center, education, tourism, health treatment, production industrial factory, etc., now the development of the zone is still at initial phase of project detail conception and it’s estimated to start the project from 2011. This zone is built according to decree regarding special development zone of Lao P.D.R No 443/PM on October 26th, 2010.

Phou Khyo Specific Economic Zone The Zone has been actively developed and total investment amounted to US$16.02 million. Developers invested US$11.02 million and sub-investors invested US$5 million. The Zone has attracted domestic and foreign investments from 16 companies (4 local, 7 foreign and 5 domestic–foreign joint venture companies) and created 72 jobs (60 local workers and 12 foreign labourers). It continued to collaborate with the People’s Republic of China’s Institute of Urban Planning to amend the model of urban planning. The Zone has paid 3.6 billion kip in land compensation, constructed a road (2.4 billion kip) and launched the construction of the Zone’s periphery roads.

Source: 8th FIVE-YEAR NATIONAL SOCIO-ECONOMIC DEVELOPMENT PLAN (2016-2020), Ministry of Planning and Investment June 2016, http://www.la.one.un.org/images/publications/8th_NSEDP_2016-2020.pdf(Accessed 15 Aug, 2017) and Government’s Office The National Committee for Special and Specific Economic Zone Secretariat Office (S-NCSEZ) : Development Strategy for Special and Specific Economic Zone (SEZ) in the Lao PDR, 2011 - 2020 publish in Vientiane Capital, 2012http://lao-vita.com/upfiles/20158520517__DevelopmentStrategyeng.pdf(Accessed 15 Aug, 2017)

Economic Zone 1

  

Economic Zone 2

Name:

Phou Khyo (or Phu Kiew)

specific economic zone

  

Name:

3rd Lao-Thai Friendship Bridge

Location (city/district):

Thakhek district “Phou Khyo city”

  

Location (city/district):

The development of the industrial zone, logistic park and inventory at 3rd Makong Bridge Khammoaun (Laos) – Nakhonphanom (Thailand).

Specificity/

Specialty:

The project will provide various facilities, privileges including tax incentives for domestic and foreign investment.

Phou Khyo Specific Economic Zone invites investors/developers to Invest in:

  1. Tourism and services
  2. Education and Agriculture
  3. Trade
  4. Industrial
  5. Health care
  6. Social institution
  7. Sport
  

Specificity/

Specialty:
  • Takkek District, Khammoaun province. 
  • Estimated value US$ 3-5 million and estimated area about 200 Hectare

Source: Investment Promotion Department (IPD) 2010: http://php.diw.go.th/idas/facesheet/12.pdf (accessed 18 Aug, 2017)

No. of Industries:

Have in many industries; in 2016 have had 5 companies invest in zone.

Source: Thai PBS published 9 January, 2016: http://englishnews.thaipbs.or.th/laos-special-and-specific-economic-zones-attract-overseas-companies/ (Accessed 24 Aug, 2017)

  

No. of Industries:

N/A

Types of Investment

Foreign Investment 

There is a few foreign investment in Khammouane province such as a project of Potash salt ore mine in Khammouane Province investing by Asian Potash Corp. Ltd. ($50 million) Finance provided by the China-ASEAN Fund. 

Source: ASEAN Investment report 2013-2014, FDI Development and Regioanl Value Chains, p.174. http://unctad.org/en/PublicationsLibrary/unctad_asean_air2014d1.pdf (accessed 15 Aug, 2017) 

Joint Venture 

N/A

Industrial Statistic in the Province

Source: Commercial Office, Khammouane, Lao

Categories of Industry

No. of factory

Capital Investment (USD)

Employment

Hose Power

Male

Female

Large industrial

91

3,249,505,578,000 Kip
($392,052,847.98 )

4,627

2,099

74,655.86

Medium industrial

 64 188,756,182,000 Kip
($22,773,433.36)		 801 98

6,689.84

Small Industrial

67

41,087,139,000 Kip
($4,957,163.32)

495

17

1,322.23
Total: 222 3,479,348,898,000 Kip
($419,783,444.54)		 5,923 2,214 82,667.93

Financial Service

Name of Bank Service
Bank Name 1: BCEL, Khammouan Branch
  • Deposit
  • Loans
  • Cards
  • Electronic Banking
  • ATMs
  • Fund Transfer
  • Trade Finance
  • Other Services
Address : Vientiane Road. Chomthong Village, Thakhek District Khammouane Province. 
Tel : (856-51) 212689, 212688,
Fax : (856-51) 212685, 214409, 
Mobile : N/A
Email : [email protected] 
Website : http://www.bcel.com.la/bcel/list-branch-map.html?br=kmn&lang=en
Bank Name 2: ACLEDA Bank Lao
  • Deposit
  • Loans
  • Cards
  • Cash Management
  • Credits
  • Electronic Banking
  • Fund Transfer
  • Trade Finance
  • Other Services
Address : #124-125, 13 south road, Group 07, Noungbuakham village, Thakhek district, Khammouane province, Lao PDR
Tel : +856 (0)20 5446 6622 
Fax : N/A
Mobile : +856 5585 5888
Email : [email protected]
Website : www.acledabank.com.la
Bank Name 3: Lao Development Bank
  • Deposit
  • Loans
  • Cards
  • Electronic Banking
  • ATMs
  • Fund Transfer
  • Trade Finance
  • Other Services
Address : Main road No.12, Thakhek, Laos
Tel : (856-51)212253
Fax : (856-51)212073
Mobile : (021)216176
Email : [email protected]
Website : http://www.ldblao.la

Business Insurance & Assurance Service

Name of Insurance Company Service
Insurance Com. 1 : Laos-Viet Insurance Agency
  • Auto insurance
  • Home insurance
  • Business insurance
  • Health insurance
Address : Main road No.12, Thakhek, Laos
Tel : +856 21264975
Fax : N/A
Mobile : N/A
Email :[email protected]
Website : http://www.laovietinsurance.com/

Infrastructure and Facilities

Electricity

N/A

Water Supply

N/A

Road

The distance from Vientiane to Khammouane is about 350.26 km. driving time 5.23 hrs.

Transportation

Bus

Khammouane can be reached by bus from the Southern Bus Terminal in Vientiane, choose either a direct bus to the province or board any bus heading south to the main towns of Savannakhet or Champasack and ask to get into Thakhaek. Be aware that transportation schedules and prices are subject to change, so please check departure times and prices at transport station or through a travel agent prior to your trip. You can also enter Thakaek from Thailand’s Nakhon Phanom Province via the Friendship Bridge. Visas on arrival are available.

Tuk-tuks, motorized tricycles (lot-sam-lo) and “jumbos” (pickup trucks with benches) are available all over town and offer an easy way to get around. You can hire taxis, mini-buses, and riverboats through guest houses, hotels, tour operators, and the provincial Visitor Information Centers in Thakhaek and Khoun Kham. You can also rent bicycles for about USD1-2 per day. For guided tours, contact the Khammouane Visitor Information Center.

Trains

N/A

Airplane

There is no airport in Khammouane province.

Living Environment for Expatriates

Hospital (English Speaking)

Name 1: Thakhek Hospital

Address : Thakhek, Lao

Tel : N/A

Fax : N/A

Mobile : N/A

Email : N/A

Website : http://www.hospitalby.com/laos-hospital/thakhek-hospital/

Investment Opportunities

Source of Information : Dr. Bounthavy Sysouphanthong, Deputy Minister, Ministry of Planning and Investment, Lao P.D.R.

intranet.mekonginstitute.org/2011/10.../11.%20Dr.%20Bounthavy_Laos.ppt (Accessed 15 Aug, 2017)

The government has prepare many mega project in order to make Thakek becoming another the business centre of the country.

  1. The third friendship bridge:
  2. Phou Khyo City Specific economic zone (Phou Khyo City )
  3. Plan to develop the “Thakek Dankham Special Economic Zone”

These mega projects will become the main factor in driven the economics of the province. And create many opportunities for business development. Thakek became the top priority district for the government to develop the utilities and infrastructure in order to maximize the benefit from the rapidly growth of economics in the area.

Logistic Provider

Natural Resources

Source of Information : Initial Environmental Examination Report: Greater Mekong Subregion Flood and Drought Risk Management and Mitigation Project (RRP REG 40190) https://www.adb.org/sites/default/files/linked-documents/40190-023-reg-oth-03.pdf

Much of Khammouane Province and the eastern part of all the southern provinces are mountainous. The natural resources are mountains and forests, for example: The Nakai Namtheun forest preservation area of the total 352,200 ha, the Hinnamnor preservation area 82,000 ha and Phou Hinpoun150,000 ha, These forests make the province very beautiful with many natural caves. The Xebangfay (239 km long), Hinboun, Namtheun and Namgnum are the main rivers of the province

Economic Indicators

Source of Information: Mekong Institute Development Report 2016 (p.7-8) http://portal.gms-eoc.org/uploads/resources/2440/attachment/Mekong_Development_Report_r261016.pdf (accessed 24 Aug, 2017) and Ministry of Commerce, Khammouane, Lao

Although the industry sector’s share is larger than agriculture’s, the latter is more important due to the greater number of people involved and land potential in agricultural practices. In 2013, 41.2 percent of the GDP was represented by the industry sector, 29.4 percent by the services sector (including tourism), and 26.6 percent by agriculture. However, about 72 percent of the working population is based in agriculture, while only 5 percent is in industry. Main agricultural products include rice, vegetable, livestock (cow and swine) and fishery.

Gross Domestic Product (GDP) / Gross Provincial Product (GPP)

Gross Domestic Product (GDP) (Currency $USD) *

GPP (Unit $USD) *

GPP /Capita (Unit $USD) *

GPP Growth Rate (in %)

N/A

N/A

N/A

N/A

Key Sector (Priority)

Major Products / Goods

1) Manufacture

1) Coal, Copper Ore, Mineral

2) Agriculture

2) Rice, Salt

3) Tourism

3) Mountains, Mekong River

4) Manufacture

4) Electricity

5) Forestry

5) Wood, Sawn wood, Timber wood

Brief Description of the key sector 1 in the province:

Manufacture: Majors industries are rice mill and minerals such as Coal, Ore, and etc.

Brief Description of the key sector 2 in the province: 

Rice: In order to promote Khammouane to be a rice hub of ASEAN, the central government of Lao PDR has developed irrigation system. Three main water sources in Hinboun, Xebangfai, Nakai and Yommalath districts are being generated to supply farming areas. The government plans to generate water supply and target covering 200,000 hectares both wet season rice and dry season rice.

Mekong Institute Development Report 2016 (p.7-8) http://portal.gms-eoc.org/uploads/resources/2440/attachment/Mekong_Development_Report_r261016.pdf (accessed 15 Aug, 2017)

Brief Description of the key sector 3 in the province:

Tourism: Khammouane is a land of rugged karst mountains, a dreamlike landscape that has served as a sanctuary for a number of wild animals that were unknown to scientists until the 1990s and is mostly of forested mountainous terrain The vast forests of the Nakai-Nam Theun Biodiversity Conservation Area are an important watershed that feed many Mekong tributaries as well as form the catchment area for Nam Theun 2, the largest hydropower project in Laos. The Xe Bangfay, Nam Hinboun and Nam Theun are the main rivers of the province.

Source: Discover Khammouane, a hidden gems: http://tourismkhammouane.org/ (Accessed 8 Aug, 2017)

Labor and Employment

Approximate 72 percent of the working population is based in agriculture, while only 5 percent is in industry. Main agricultural products include rice, vegetable, livestock (cow and swine) and fishery.

Source: Mekong Institute, Mekong Development Report 2016: http://portal.gms-eoc.org/uploads/resources/2440/attachment/Mekong_Development_Report_r261016.pdf

Minimum Labour Wage in USD

Labour Force Employed

Labour Force Unemployed

6.25 USD per day

(77.7%)

(33.3%)

Trade (import and export)

Major Export from the province

Product name 1 :

Rice

Product name 2 :

Coal, Copper ore

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Price in USD :

N/A

Price in USD :

N/A

Destination :

Thailand, Vietnam,China,India

Destination :

Japan

Product name 3 :

Wood

Product name 4 :

Electricity

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Price in USD :

N/A

Price in USD :

N/A

Destination :

N/A

Destination :

N/A

Major Import to the province

Product name 1 :

Household products

Product name 2 :

Refined Petroleum

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Price in USD :

N/A

Price in USD :

N/A

Destination :

Thailand

Destination :

N/A

Product name 3 :

Car, Delivery trucks

Product name 4 :

N/A

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Volume (Unit eg. Kg. /Ton / Litre / piece)

N/A

Price in USD :

N/A

Price in USD :

N/A

Destination :

N/A

Destination :

N/A

Opportunities in Tourism

Source of Information : Statistics from : 2014 Statistical Report on Tourism in Lao: http://www.tourismlaos.org/files/files/2014%20Statistical%20Report%20on%20Tourism%20in%20English%20Version.pdf (Accessed 15 Aug, 2017)

Overview of Khammouane province from Lao tourism: http://www.laotourism.org/khammouane.htm (Accessed 15 Aug, 2017)

  • Thakhek Town

The provincial capital, Thakhekis located along the bank of the Mekong River. It is very important border opposite Nakorn Phanom, Thailand. Historically this town has been a fare front in the war for national independence. In Thakhek we can see many buildings designed in old colonial style (French classic). Sikhottabong StupaBuilt at the same time as That Inhang Stupa in Savannakhet and That Phanom in Thailand. These were constructed in the Sikhottabong Empire for keeping the Bones of Lord Buddha. At first, it was built by King Nanthasene for King Soummitham then it restored by King Saysethathirath in the 16th century

  • Tham Khonglor Cave “Beauty in the Dark”

Tham Khonglor Cave is located in the Nation Protected Forest Area of Hinboun Mountain in Khammouane Province, 310 kilometers southeast of Vientiane and 169 kilometers north of Thakhek District, the west entrance is at Ban Khonglor Village, Hinboun District, whereas the east entrance is at Ban Natan Village, Nakai District.

The cave is approximately 7,400 meters long, its width ranges from 10 to 90 meters. The wide and the height varies from 20 to 100 meters. The Hinboun River runs through the cave in all seasons. The most attractive area within the cave can be observed at Vang That and Had Xay Luang, where many decorative stones clinging to the ceiling can be view. Had Xay Luang (White Sand Beach) can also be visited, where an attractive beach od about 150 meters long and 100 meters wide can be enjoyed.

Other attractive sites for visits in the Province include

  • Tad Kham Waterfall located 52 kilometers out of Thakhek District
  • Tad Nam Khengkam Waterfall, on the Route 13 (south) about 37 kilometers to the east to Thakhek District
  • Wat Pha Sokkhamsene Temple, an ancient temple located about 1 km out of Nongbok District and about 37 kilometers from Thakhek District
  • That Thumphavang Stupa located about 2 kilometers north of Nongbok District
  • Tham Nang Cave located 4 kilometers from Ban Na Viallage in Hinboun District

Tourism Statistic

Number of Hotel / Hostel/accommodation

Number of Rooms of Hotel / Hostel / Accommodations

Number of Tourist

Average expenditure per person per day in USD

206* (2014)

1,726* (2014)

Foreigners : 313,674

Local : 159,232

Total visitors: 472,906 (*2014)

N/A

Research and Development Center for Business and Production

Why invest in Khammouane

Source of Information: Combined data from Dr. Bounthavy Sysouphanthonh, Ministry of Planning and Investment, and Officer in Ministry of Commercial Office, in Khammouane, Lao

Khammouane province is at the heart of a dynamic Mekong region, endowed with rich natural resources and considerable opportunities for social economic development driven by many factors:

  • Geographically advantageous position
  • Global and regional trade liberalization
  • Completion of National Road 12 to Vietnam
  • NamTheun 2 hydropower project
  • “The Third friendship bridge”

Businesses that are interested in investing are minerals, energy, agriculture, tourism, and investment in economic zone area as well as transportation business.

Lao P.D.R in GMS, not only for enhancing external cooperation in sub-region but realizing the Lao Government overall objectives, including promoting sustainable economic growth, equality and poverty reduction, through promoting Economic Integration and Enhancing Connectivity in the region.

Province’s capital “Thakek district”, Thakek is a commercial center of the province, situated in the bank of Mekong river opposite Nakhon Phanom province of Thailand from here people from both countries trading goods with each other’s daily.

Due to such potential Thakek became the top priority district for the government to develop the utilities and infrastructure in order to maximize the benefit from the rapidly growth of economics in the area.

(Source: Dr. Bounthavy Sysouphanthong, Deputy Ministerม Ministry of Planning and Investmentม Lao P.D.R.)