Workers involved in a $9 billion hotel and casino project in southern Laos have reported that they have not received full wages for several months. Some workers believe that the subcontractors responsible for the construction have already left the project.
Laos Mahanathy Siphandone Investment Co. Ltd., a company based in Hong Kong, received a 99-year concession in 2018 to develop part of the Siphandone Special Economic Zone in Champasak Province. The project, which aims to attract tourists, includes a five-star hotel, a fish breeding pond, and a 36-hole golf course. However, it was delayed during the COVID-19 pandemic, and while basic infrastructure such as electricity, water, and a ring road was completed last year, the construction of several buildings has been halted for three months.
One worker, who spoke on condition of anonymity for safety reasons, mentioned that the situation is the same for nearby housing developments promised to those displaced by the 10,000-hectare project. The worker stated, “Workers will not return to work until they are paid.”
A local resident noted that earlier this year, she would see 300 to 400 workers at the construction site, but now only about 40 remain, and the site appears very quiet.
The project is located near some of the most beautiful natural attractions in Laos, such as the Khone Phapheng Falls, the largest waterfall in Southeast Asia, and the Siphandone archipelago on the Mekong River near the Cambodian border.
Laos, one of the least developed countries in Southeast Asia, has become a target for significant foreign investment, particularly from China, Thailand, and Vietnam, attracted by the favorable investment incentives offered by the Lao government. Approximately 12 special and specific economic zones across the country have attracted foreign direct investment since the first zone was established in 2002, promoting development and job opportunities in rural areas.
A Lao truck driver told Radio Free Asia that he had only received 10% of his wages and was aware that many construction workers had not been paid at all. He said, “Our Chinese employer has fled, and we don’t know what to do.”
Another construction worker mentioned that they had not seen their employer on-site for several months, speculating that financial difficulties and delays, possibly due to the rainy season, were to blame.
Attempts to contact Laos Mahanathy Siphandone Investment for comment were unsuccessful. An official from the Labor and Social Welfare Office in Champasak Province stated that he could not provide details about the current status of the project. However, one subcontractor admitted that his company was facing financial difficulties, stating, “We are having cash flow problems. We are also waiting for money.”
