Taskforce Meeting to discuss the Implementation Progress of PM Orders 02 and 03 in the first half of 2022 and identify priorities for the second half of the year

On 28 July 2022, the Investment Promotion Department (IPD), Ministry of Planning and Investment organized a semiannual taskforce meeting to discuss the implementation progress of PM Orders 02 and 03, the improvement of One Stop Service and the controlled business list in the first half of 2022 and identify priorities for the second half of the year. The 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 Mr Khamsay NANTHAVONG , Deputy Director General of IPD. The participants were reminded of the primary objectives of PM Orders 02 and 03, and the overall significant implementation progress accomplished in the first half of 2022. In summary, relevant line agencies have successfully improved the coordination mechanism, and several laws and regulations within their roles and responsibilities have been developed and amended, aiming at streamlining procedures and reducing associated time and costs of doing business in Lao PDR. At the same time, great emphasis has been paid to, and significant progress has been made in developing digital solutions/IT systems to improve government services.

Along with these achievements, many challenges remain that must be addressed collaboratively in accordance with the government’s goals and guidelines, particularly Notification No. 24/PMO regarding the implementation of the agreed actions as a result of the public and private sectors consultation meeting on the improvement of the business environment on December 16-17, 2021. The government provided instructions on reviewing and revising PM Orders 02 and 03 and continuing the legislation improvement and cross-agency coordination mechanism enhancement. Relevant agencies should focus on re-examining and simplifying procedures and required documentation for applying for investment licenses, and clearly specifying the timeframe for consideration and their responsibilities.

Concerning PM Order 02 priorities for the second half of 2022, the relevant authorities must continue to coordinate and accelerate ongoing reform measures, finalize and adopt the KPI concept in their reform action plan and process, and increase outreach activities to promote the reform outcomes. In addition, priorities for the implementation of PM Order No. 03 should include: continuing to improve the coordination and reporting mechanism; developing a detailed action plan with a clear task and timeframe, as well as enhancing the one-stop service to be a facilitation mechanism for investors that is transparent, fair, systematic and consistent with the laws.

At the end of the meeting, the Chair urged the relevant line agencies to focus on and continue the implementation of PM Orders 02 and 03, respectively. Specific reforms or improvements involve multiple sectors; therefore, it is critical to continue strengthening the mechanism for coordination, discussion, and reporting of the status/progress of implementation on a systematic and regular basis to ensure that the implementation issues and challenges will be addressed promptly. Furthermore, it is encouraged to continue improving and developing an action plan that embraces changes and current circumstances, intending to eliminate barriers to investing and doing business in Lao PDR and assure tangible outcomes.

The meeting’s Chair expressed his appreciation to the development partners for their support through the Lao PDR’s Competitiveness and Trade Project (LCT) which 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.