Government, development partners and private sector discuss key challenges and opportunities for promoting private sector development in Lao PDR

Vientiane Capital, Lao PDR – On October 30, the Ministry of Industry and Commerce (MOIC) hosted the 23rd Trade and Private Sector Working Group (TPSWG) meeting. The event provided a platform for the Government of the Lao PDR, the private sector, small and medium enterprises (SME), and development partners to exchange views on key challenges and opportunities for promoting private sector, foreign investment and SME development in Laos.

The 23rd TPSWG meeting was co-chaired by Deputy Minister of Industry and Commerce Dr. Manothong Vongsay, Ambassador of the European Union to Lao PDR Mr. Mark Gallagher, and U.S. Ambassador to Lao PDR Ms. Heather Variava. Over 80 participants representing various entities, such as line ministries, embassies, development partners, and the domestic and foreign business community, attended the meeting.

During his opening remarks, Deputy Minister Vongsay, emphasized that while we are making good progress in integrating with the regional and global economies, especially in the framework of the ASEAN Economic Community (AEC) and World Trade Organization, a lot still needs to be done. “For our country to gain full benefits from its international integration especially in the context of AEC, it is essential that our country can enhance its national competitiveness by further deepening economic integration, creating a favorable trade and investment environment, and improving productivity of Lao enterprises,” said Deputy Minister Vongsay.

Ambassador Variava congratulated the Ministry and Government of Lao PDR for successfully chairing this year’s ASEAN meeting and drew attention to the significance of the SME stating that, “SMEs are the backbone of Laos’s economy, driving innovation and job creation. By fostering an environment that encourages entrepreneurship, we can improve competitiveness within the region and contribute to the broader goals of ASEAN,” said Ambassador Variava. “The United States remains committed to partnering with Laos to improve the business enabling environment, advance economic reforms, and support small and medium enterprises (SMEs) while fostering economic growth between Laos and its ASEAN partners.”

The meeting discussed draft priority actions in trade and trade related area to ensure smooth transition from LDC graduation, key results of the recent ASEAN Economic Ministers Meeting, the progress of Public Private Dialogue (PPD) under the Lao Business Forum, an overview of the MOIC’s next 5-year plan, and initial concept of the next generation of Trade Related Technical Assistance.

Ambassador Gallagher, in his closing remarks, “We encourage the Lao Business Forum and the Sector Working Group to continue working closely to monitor progress toward an improved business and investment climate that drives job creation and inclusive economic growth.,” said the Ambassador of the European Union.

Deputy Minister Vongsay concluded the meeting by echoing remarks made by his co-chair regarding the importance of having transparent and predictable investment legal framework and streamlined trade regulations in attracting quality investment. “I also fully agree with my co-chair’s assessment on the important role played by public private dialogue under the Lao Business Forum and we will need to double our efforts to address wide range of issues raised at LBF 15, especially the priority reform agenda adopted by the LBF 15,” said Deputy Minister Vongsay.

In closing, Deputy Minister Vongsay added that “on behalf of the Ministry of Industry and Commerce, I would like to reiterate our commitment to collaborating with line ministries, private sector, and development partners to address the binding constraints facing our private sector.”

TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. The working group meetings are organized semi-annually to address issues related to trade policies, investment promotion, infrastructure development and other matters that affect the private sector and trade within the country.