MPI organized an annual meeting to review the progress of 2021 and reprioritize the 2022 workplan on the implementation of Order 02/PM and 03/PM

On 19 January 2022, the Investment Promotion Department, Ministry of Planning and Investment organized an annual meeting to review the progress of 2021 action plan, reprioritize 2022 key activities related to the implementation of Orders 02/PM and 03/PM, as well as the improvement of One Stop Service and the controlled business list. The workshop participants included representatives from 07 Ministries, People’s Supreme Court, Electricite Du Laos, Lao Credit Information Company, Lao Securities Commission Office, Concerned Vientiane Municipality Divisions, and Lao National Chamber of Commerce and Industry that are in charge of implementing the business environment reform under the said Orders.

The workshop was chaired by Mrs. Khamchan Vongseneboun, Deputy Minister of Planning and Investment. The participants were reminded on the primary objectives of Orders 02/PM and 03/PM, followed by the overall significant implementation achievement to date the participants. Relevant line agencies have successfully improved coordination mechanism, and a number of laws and regulations were developed and amended based on each agency’s roles and responsibilities, with the aim to streamline the procedures, reduce associated time and costs of doing business in Lao PDR. Simultaneously, great emphasis has been paid to and significant progress has been achieved in the development of digital solutions, which use ICT systems to improve government services.

Along with these accomplishments, there are numerous challenges that must be addressed collaboratively in order to accelerate progress and ensure that the Government’s goals are met, and this necessitates high ownership and a detailed action plan with clear task and time bound, embrace change and adapt to “new normal” as to ensure its successful and effective implementation, that is in line with current circumstance and has stronger achievable approach. In the meanwhile, continue to monitor and promote the effective and uniform execution of the updated laws and regulations in order to contribute to the achievement of the National Socio-Economic Development Plan.

At the end of the meeting, despite the World Bank’s suspension of its annual ease of doing business (EDB) report, the Chair urged the relevant line agencies and sectors to focus on and continue the implementation of Orders 02/PM and 03/PM. It is critical that the key authorities in charge of the ten indicators, as well as the Lao National Chamber of Commerce and Industry, continue to explore the existing methodology/assessment mechanism in substitute the EDB. Concerning Order No. 03/PM, it can be seen that, despite the fact that all line agencies have completed the establishment of the One-Stop Service Unit and have been included on the Order 03/PM committee, the coordination and reporting system does not operate efficiently. The Chair also urged that the line agencies continue to revise and improve the list of controlled businesses by focusing on businesses that may affect national security, public order, national fine traditions and environment, society and nature as well as precisely allocate responsibilities on the issuance of operating licenses between central and local levels.

Another critical issue that must be addressed is investment approval process, which is still experiencing significant delays. As a result, the Decree 05/PM, dated 05/01/2018, on the implementation and activities of the Investment Promotion and Management Committee, specifically Article 6 (personnel structure), Article 7 (timeline for considering applications for investment in controlled business), Article 8 (timeline for considering investment applications), and Article 10 (working approach) must be amended. Furthermore, certain provisions of the Law on Investment Promotion, particularly Articles 37 and 46, were suggested for incorporation into the new decree. According to report 1079/MPI dated July 9, 2021, the revised draft was presented to the Prime Minister and is waiting for his consideration and approval accordingly.

This meeting is supported by Lao Competitiveness and Trade (LCT) project is a multi-donor project funded by the World Bank Group, Australian Aid, Irish Aid, and USAID, which implementing at the Department of Planning and Cooperation, Ministry of Industry and Commerce. LCT project aims to eliminate the barriers to private sector-led growth by improving the regulatory environment, lowering trade costs and raising firm-level competitiveness.