Lao Public and Private Sectors together with Development Partners review progress of improving business environment in the country

Vientiane, 06 June 2019. The semi-annual Trade and Private Sector Working Group meeting – main policy dialogue platform between the government and development partners took place at Donchan Palace Hotel, Vientiane Capital.

The meeting discussed a number of important initiatives to improve environment for Doing Business in Laos, including progress of regulatory reforms in key areas of World Bank Group’s Doing Business Report, implementation of new Investment Promotion Law, establishment of National Single Window to facilitate cross border trade, as well as progress of public private dialogue on specific issues affecting private sector under the Lao Business Forum.

The meeting was co-chaired by Mr. Sirisamphanh Vorachith, Director General of the Department of Planning and Cooperation of the Ministry of Industry and Commerce, and co-chaired by H.E. Mr. Leo Faber, European Union’s Ambassador and H.E Mr. Jean-Bernard Carrasco, Australian Ambassador to Lao PDR. The meeting attracted more than 100 participants from line ministries, development partners, and domestic and foreign private sector.

Speaking at the meeting, Mr. Sirisamphanh Vorachith emphasized that “we all agree that Government policies and behaviors play a key role in shaping the investment climate. While governments have limited influence on factors such as geography, they have more decisive influence on the security of property rights, approaches to regulation and taxation, the provision of infrastructure, the functioning of finance and labor markets, and broader governance features”.

“The enabling environment for businesses in most market economies evolves over centuries. Laws and regulations have been generally issued in response to social demand, and have evolved in response to changing demands and the practical experiences of implementation. Lao PDR has been developing a market-based business enabling environment in a couple of decades. It is therefore not surprising that there are problems of inconsistency and weak implementation. However, our challenge at this juncture is to address these inadequacies.” Mr. Vorachith added

In his opening remarks, H.E. Mr. Jean-Bernard Carrasco, Australian Ambassador to Lao PDR Laos stressed that “Australia and the EU, like other development partners, are committed to support the Lao Prime Minister’s reforms aimed at improving the business environment and attracting quality investment that will generate jobs for Lao people, transfer skills and reduce poverty”.

While stressing the importance of the dialogue under the sector working group, Mr. Ambassador said that as Co-Chairs, the EU and Australia see today’s Working Group as an opportunity for policy dialogue between the private sector and the government – a forum to discuss what is going well and identify areas that should be prioritized in our development assistance and reform initiatives going forward.

The haft day meeting had a very productive discussion on key challenges affecting implementation of reform initiatives in all topics covered and recommended a number of specific actions for achieving tangibles results in business operating environment in the country.
In his closing remarks, H.E Leo Faber, EU Ambassador to Lao PDR requested the meeting to come up with concrete actions to make improvements in specific reform areas discussed in particular implementation of Law on Investment Promotion, simplification of import and export of agriculture products as well as addressing key constraints affecting sustainable development of tourism sector.

Director General Sirisamphanh Vorachith closed the meeting by stressing the importance of development assistance in implementing trade and private sector development priorities and expressed his confidence that development partners, who have long provided valuable assistance to support the design and implementation of investment climate improvements, will continue to supporting Lao PDR in making continuous improvement in critical areas of investment climate in the country.

The TPSWG is one of 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. Participants of the forum usually come from government, development partners, the private sector and civil society. Other 9 sector working groups include Health; Education; Governance; Macroeconomics; Infrastructure; Illicit Drug Control; UXO; Agriculture and Rural Development; and Natural Resource and Environmental Management.