One of the largest infrastructure investments in Laos, the Boten Special Economic Zone (SEZ) or ‘Boten Beautiful Land’, is a 10-billion-USD Chinese-built and funded zone. The story of this border-town SEZ is a case of boom to bust—and perhaps boom again. The Lao Government first designated it an SEZ in 2003. After a notorious period as a casino outpost (2007–11), Boten was shut and much of the population vacated the zone. With the Belt and Road Initiative (BRI) and the construction of the Laos–China Railway, Boten’s strategic location has been seized on as an investment opportunity. Under a new Chinese developer, the SEZ is currently being refashioned into an urban and tourism centre, as well as a trade and logistics hub.

Project Impacts

• Employment and Labour: During Boten’s first iteration as the Golden City (2007–11), local employment decreased as workers cited abuse by bosses and discrimination. [...]
• Trade and Economic Development: Within the zone, the purposes of the international business and finance clusters are to enhance standardisation of international trade procedures, establish a regional commodity distribution centre that influences surrounding areas, build an advanced financial system, and set up an international trade platform serving Laos, China, and other ASEAN countries. According to interviews with Haicheng’s leadership, Boten SEZ will help strengthen economic and trade relations between China and Laos, with hopes of promoting both prosperity and stability at the border. [...]
• Customs and Taxes: State revenue generation through taxes and investment is a critical motivation for the Lao Government to promote SEZs, and Boten is no different. However, a Haicheng official noted in an interview in 2019 that customs and tax collection were a central challenge. [...]
• Environment: Before the development of the SEZ, Boten was covered by lush, dense forest. [...]
• Land and Local Community: The original village of Boten was moved before SEZ construction began in 2003. Residents were first relocated in 1995–96 by the Namtha District authorities, who established a commercial zone along the main highway to foster small-scale trade with China. The residents, houses, and businesses were relocated away from the commercial street. [...]
• Fiscal Impact: While many large-scale Chinese state-backed projects in Laos carry with them questions related to debt, the Boten project is privately developed and financed. The Lao Government does not have financial responsibility for the project and it is not included in the national debt portfolio. A branch of the Lao China Bank was opened in the zone in 2017.
• Sovereignty: In 2010, a Lao employee in Boten told anthropologists Chris Lyttleton and Pál Nyíri ‘in fluent Chinese’ that Boten is ‘China now; China rented it’. [...]
• Governance: [...] The author learned in an interview with an official at the Lao MPI in 2018 that, as the sole developer, Haicheng Group submits a monthly report to the Chinese Embassy in Laos, informing it of progress, follow-up work, problems, and support needed from the embassy or actors in China. Beyond national defence and foreign affairs at the border, the Lao Government delegated authority to the committee, allowing the company to operate with a high degree of autonomy.
• Wildlife Trade: The illegal trade in wildlife is notorious in border areas within the Mekong region such as Boten, and includes parts from tigers, bears, and pangolins. [...]