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Laos: Committees set up in provinces to speed investment approval
A number of provinces have established Investment Promotion and Management Committees (IPMCs) in a bid to accelerate the consideration and approval of investment proposals.
At least eight provinces and the capital Vientiane have set up committees following the establishment of the central IPMC, Minister of Planning and Investment Dr Souphanh Keomixay said recently.
The minister reported on the progress made in improving ease of doing business, including facilitation via the one-stop service mechanism, at a recent meeting of the government cabinet, Vientiane Mayor and provincial governors in Huaphan province.
Implementation of the mechanism is far advanced at the central level after the Ministry of Planning and Investment opened the one-stop service at the end of last month to enable companies to carry out all aspects of their investment application at one location.
The ministry is working with the remaining provinces to encourage them to set up IPMCs and one-stop service offices, according to the minister, who is also Vice Chairman of the central IPMC.
It is expected that all provinces will have these Committees and one-stop service offices in place by the end of this year, officials said.
Although some provinces have set up one-stop service offices, they are not functioning properly, Dr Souphanh said.
He explained that provincial offices function as coordinators, receiving investment applications and helping to coordinate with the relevant sectors rather than completing all of the required documentary procedures.
Dr Souphanh stressed the need for the ministry to work with the provinces to address various issues.
Since the inauguration of the central IPMC in March 2017, the committee has met on 25 occasions to consider 206 investment project proposals. Of these, 127 projects were approved, 26 others were refused and another 53 projects are awaiting a decision while the committee seeks guidance from higher authorities.
The minister hailed the introduction of the IPMC, which meets twice a month, saying it resulted in quicker approval of investment proposals.
The IPMC and the one-stop service mechanism are part of government efforts to improve ease of doing business in Laos, whose ranking in this respect has fallen in recent years.
Laos’ ranking dropped from 134th in 2014 to 139th in 2016 and down to 141st in 2017, according to a World Bank survey, which ranks 190 economies across the world.
In view of the drop in ranking, the government issued Executive Order No 2 on February 1, 2018, instructing the sectors in charge of the 10 indicators used by the World Bank to streamline procedures and actions to improve the ease of doing business in Laos.
The 10 indicators include starting a business, dealing with construction permits, getting electricity, paying taxes, trading across borders, enforcing contracts and resolving insolvency, in which Laos ranks 164, 40, 149, 156, 124, 97 and 168 respectively.
Source: http://www.vientianetimes.org.la/FreeContent/FreeConten_Committees_103.php