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Lao province cuts red tape to ease freight transport

Authorities of Laos’ central Savannakhet province have announced the removal of all inspection checkpoints along main roads to speed the transport of freight and exports.

Provincial governor Santiphab Phomvihane last week issued an executive order to remove the checkpoints – the latest move to improve the business environment in the province.

Police checkpoints along Road No 9, which connects the second Laos-Thailand Friendship Bridge to the Dansavan-Laobao checkpoint at the Vietnamese border, have now been removed.

Checkpoints along Road No 13 South, which connects Savannakhet with other central and southern provinces, have also been dismantled after the order came into effect on September 25.

Specifically, the order stated that the checkpoint at Xebanghieng in Songkhone district, the Salakaibang checkpoint in Phin district and the checkpoint at Nonsan village in Xaybouly district, which were located on these two arterial routes, were to be removed.

Other checkpoints on various roads in the province including those at borders between districts have also been removed under the order.

The removal of the checkpoints comes after numerous complaints from the business sector that inspections were inappropriate and slowed freight transport. They said they had already received a transport permit which had involved an inspection.

Businesses also alleged that repeated inspections along roads created loopholes for the charging of unlawful fees.

In his order, Santiphab said the closing of the checkpoints was part of efforts to realise the government’s ‘Three Opens’ policy to improve public services and boost investment.

Prime Minister Thongloun Sisoulith had earlier announced the ‘Three Opens’ policy, comprising an ‘Open Door’ (to welcome foreign investment), an ‘Open Heart’ (widely understood to welcome public feedback), and ‘Open Barriers’ (the removal of barriers).

Under his order, Santiphab terminated a committee previously formed and stationed at Dongsavan village in Sepon district that was in charge of inspection coordination.

However, inspections by customs and forestry authorities may be carried out on targeted vehicles believed to have violated the law.

“General inspections are not permitted,” the order stated.

Other departments wanting to carry out inspections which they deem essential must seek approval from the provincial leadership.

District traffic police are not allowed to set up a checkpoint on a national or provincial highway unless higher provincial authorities order them to do so.

Inspections by provincial traffic police are permitted but only on targeted vehicles suspected of violating the law.

The move is the latest step taken by the provincial leadership of Savannakhet, which is being promoted as the country’s main economic hub, to improve the business environment.

Since June this year, the central province, which is home to the Savan-Seno special economic zone, has piloted its newly streamlined procedures which significantly shorten the time taken to obtain a permit to start a new business.

VIENTIANE TIMES