Government, development partners and private sector discuss key issues that are critical for further improving investment climate in Lao PDR
Vientiane Capital, Lao PDR – On June 14, the Ministry of Industry and Commerce (MoIC) hosted the 22nd Trade and Private Sector Working Group (TPSWG) meeting. The event provided a platform for the Government of the Lao PDR, the private sector, small and medium enterprises, and development partners to exchange views on critical issues affecting trade and investment and build consensus on necessary measures to remove identified investment climate constraints.
The 22nd TPSWG meeting was co-chaired by Deputy Minister of Industry and Commerce Dr. Manothong Vongsay, Ambassador of the European Union Delegation to Lao PDR Ina Marciulionyte, and U.S. Ambassador to the Lao PDR Heather Variava. Over 80 participants representing various entities, such as line ministries, embassies, development partners, and the domestic and foreign business community, attended the meeting.
During his opening remarks, Deputy Minister Dr. Vongsay, emphasized that Government policies and behaviors play a key role in shaping the investment climate. “Our government has committed to implement several important businesses enabling environment reform measures, including simplification of business entry through revisions of the Investment Promotion Law, Enterprise Law, and the relevant implementing regulations and guidelines; however, ensuring consistent implementation of these reforms remained challenging, especially at local level.” said Deputy Minister Dr. Vongsay.
Ambassador Marciulionyte, highlighted critical issues that have become obstacles for private sector development. “Among several important issues, there are key priority issues for this year that we have considered and discussed among the development partners, and foreign chambers of commerce notably, foreign currency management decision no. 333 issued by Bank of Laos, high transit cost charged by Dry Ports, decree no.238/GOV on professional associations restricting foreigners from representing their firms or organizations in business associations,” said Ambassador Marciulionyte.
The meeting was divided into two main sessions. The first session featured updates of ongoing reforms to improve the Trade and Investment Environment, including the revision of the Controlled List and Investment Promotion Law by representative from the Investment Promotion Department, Ministry of Planning and Investment, followed by an update on the implementation of ASEAN Priority Economic Deliverables for 2024 by representative from the Trade Negotiation and Economic Cooperation Department, Ministry of Industry and Commerce.
The second session focused on the public private dialogue (PPD) process under the Lao Business Forum. Representative from the Lao National Chamber of Commerce and Industry highlighted the key results of the PPD, and reform priorities endorsed at the LBF 15 and representative from MOIC introduced the Prime Minister Decision No. 004 on institutionalization of public private dialogue.
Ambassador Variava, in her closing remarks, welcomed the open discussions on government policy reforms aimed at creating a conducive environment for doing business, fostering trade and investment in the country.“Today’s discussions highlighted the importance of streamlining processes and reducing barriers in order to facilitate trade within the country and with Laos’s neighbors. These efforts are pivotal for the development and growth of businesses across Laos,” said Ambassador Variava.
Deputy Minister Dr. Vongsay concluded the meeting by echoing remarks made by his co-chair regarding the importance of having transparent and predictable investment legal framework and streamlined trade regulations in attracting quality investment. “I also fully agree with my co-chair’s assessment on the important role played by public private dialogue under the Lao Business Forum and we will need to double our efforts to address wide range of issues raised at LBF 15, especially the priority reform agenda adopted by the LBF 15,” said Deputy Minister Dr. Vongsay.
In closing, Deputy Minister Dr. Vongsay added that “I am confident that our development partners, who have long provided development assistance to support the design and implementation of investment climate improvements, will continue to support us in making continuous improvement in critical areas of investment climate that we discussed today” and thanks all participants for their active participation.
TPSWG is one of the ten sector working groups under the Round Table Process and is the main forum for policy dialogue between the government of Lao PDR and development partners. The working group meetings are organized semi-annually to address issues related to trade policies, investment promotion, infrastructure development and other matters that affect the private sector and trade within the country.
