Thailand
Laos: Govt to create enabling environment to promote investment
The government plans to elevate Laos’ ranking in the Ease of Doing Business table from its current position at 139 to within the top 100 out of the 190 countries assessed, by the year 2020.
It plans to achieve this by doing more to facilitate investors and resolving the problems faced by both domestic and foreign private investors.
This plan was outlined during the 2017 Round Table Implementation Meeting, held in Vientiane on Friday, to inform participants about the need to provide an enabling environment for investors.
The meeting’s aim was to bring together the public sector and development partners as well as private sector representatives to discuss quality private investment, including making administrative procedures simpler, faster and transparent.
To achieve this objective, Deputy Minister of Planning and Investment Dr Khamlien Pholsena said that all the sectors involved needed to counter the challenges. This required strong coordination and significant improvement in the management of all stakeholders.
“We are working on an investment promotion strategy covering various aspects for enabling private sector development and investment for development,” Dr Khamlien said.
“We are also keen on supporting partnerships between private companies and the local private sector, as well as increased cooperation between research and innovation institutions.”
Head of the EU Delegation to Laos, Mr Léon Paul Faber, emphasised that minimum standards agreed within Asean are important and helpful to create a level playing field.
Mr Faber expressed concerns about the need to simplify the rules relating to some of the basic conditions for starting a business, as well as building trust in the regulatory environment and a clear understanding of the system amongst businesses to ensure legal safeguards and attract investments.
“We commend the government’s efforts in improving the legal environment which is an excellent first step, but it should then be matched by enforcement,” he said.
“The enforcement of legislation will require the strengthening of government capacities, including the capacity to engage in outreach and communication with the private sector operating in Laos, and their tax advisors,” Mr Faber said.
The meeting also acknowledged the importance of knowledge development to further realise quality private sector investment for development. Meeting participants heard a presentation on the update of the endorsed Revised Investment Promotion Law and draft National Investment Strategy. There was also an update on the progress made in capitalising on the 10th Lao Business Forum discussions and the private sector’s contribution to national development and commitment to quality private investment.
Progress has been made in various areas as discussed during the forum. These include the legal environment (revision of public-private partnership law for instance); taxation (tax administration reform), transportation and import/export procedures; business registration/licensing; access to finance (microfinance); and labour market development.
Source: http://www.vientianetimes.org.la/FreeContent/FreeConten_Govt_to_create_253.html