Ministry of Industry and Commerce Introduced Streamlined Factory Management Regulations

Vientiane, 3 July 2023 – The Permanent Secretary Office, Ministry of Industry and Commerce (MOIC) in collaboration with the Department of Industry and Handicraft, successfully organized a one-day dissemination workshop on the improved regulation for factory management. Chaired by Mr. Samly Boutsady, Acting Director General of Industry and Handicraft, the event took place on July 3, 2023, at the Crown Plaza Hotel and was attended by over 50 participants from the public and private sectors.

The improved Decision on factory management no. 0166/MOIC, dated 9 February 2023, introduced at the dissemination workshop, adopts a risk-based approach to licensing, ensuring that different types of factories are subject to appropriate regulatory requirements. Under the revised factory regulation, high-risk factory types will be required to apply for a license to establish, following a thorough assessment process. Medium-risk factories will only need to obtain an operation certificate upon successful enterprise registration, eliminating the need for additional licensing procedures. For low-risk factories, which predominantly include micro- and small enterprises operating at the household level, a simple notification to district authorities will suffice.

In his opening remarks, Mr. Samly emphasized the significance of the revised Decision on factory management as a crucial milestone in enhancing the business environment. He further highlighted the importance of moving towards an online platform to facilitate easy access to regulations and application processes for investors. This digital transformation aims to attract more investment into the country, stimulating domestic production and unlocking export potentials in the future.

During the workshop, participants were also introduced to the plan for upgrading the factory database management system, as well as the future ambition to transition towards an online licensing issuance system. These advancements align with the goals outlined in the Prime Minister’s Order No. 02 and 03, which seek to improve the business environment in Lao PDR.

This dissemination workshop provided a valuable platform for public and private sector stakeholders to exchange insights, address concerns, and foster collaboration in implementing the improved factory management regulations. The Ministry of Industry and Commerce remains committed to creating a conducive environment for businesses to thrive and contribute to the sustainable development of Lao PDR.

The workshop was supported by the Lao PDR Competitiveness and Trade Project (LCT), which is implemented by the Ministry of Industry and Commerce, with technical and financial support from the World Bank and additional financial contributions from Australia, Ireland, and the United States. The project aims to eliminate barriers to private sector-led growth by improving the regulatory environment, lowering trade costs and raising firm-level competitiveness.