The affected sectors include foreign investment, exports, tourism, employment , government revenues and foreign aid, with the first three sectors being the most seriously affected as they involve foreign countries. what do you think of the future?? what can we do if the situation is worse?
Between mining, tourism, and foreign countries just out and out giving away money to Laos, I think that about covers the foreign earnings. Oh ya, electricity to Thailand. Don't know about that one. Remember all those rubber trees? Doesn't even pay to tap them now. All the major rubber producers are supposed to be meating to reduce production in an attempt to shore up prices, LOL.
And it's just beginning. Well, mining has already tanked, seen the price of copper lately? Tourism should really begin to go on the skids this year and next. As people run out of money flying across the world for vacation won't seem so important. And as foreign governments have no money they'll begin to worry about feeding thier own citizens.
Look for things to get a lot worse before they get better, maybe in 2015.
Yes, it's bad for all people around the world, including Lao people. God has punished human being for people always want to kill each other, I guess. Some countries like to concentrate on making war rather than economy. As a result, people have got what they have done for the past years.
Hahaha! I just tried to make a statement based on the ancient philosophy. It goes without saying that Global Financial Crisis will affect to the Lao government target, dreaming to erase Laos from the list of poorest countries by 2020. However, I do hope that with Lao government leadership Laos would be able to overcome all problems faced to reach our sweet dream.
It would be wise if we try to be more optimism, see how and what we can gain from this crisis.
It would be wise if we try to convert the crisis to benefit. That easy said than done in reality. Every can say a good statement, but few people would know how to do.
I got a feeling that nowadays our Lao government is doing its best to overcome all consequences of this global financial crisis, such as applying strict rules on spending money, on using government properties, on fuel expenses, on expenses for unnecessary things and so on.
As far as tourism is concerned, I guess, Laos still has a room to hope, although it does not rule out it will reduce for the time being. Probably, people would still want to travel with their small amount of money. Travelling in Laos is not that expensive compared to in other countries. That is a plus for Laos. However, Laos still need to work hard to improve our tourism standard.
As far as an employment is concerned, Lao government and private companies should use this crisis to improve their employee's skill. The bad, corrupted, low educated employees need to be fired and accept the best and good one to work for them. But having said, this seems not to be a Buddhism concept, and Lao government's policy either. It would be no harm to tell our civil servants to work hard and behave well. Just to tell them they could be fired if they were not good.
The government cabinet, Vientiane mayor and provincial governors met in Vientiane last week to draw up almost 80 measures in a bid to spur steady economic growth during the global financial slowdown.
The three-day meeting ended on Thursday and was chaired by Prime Minister Bouasone Bouphavanh.
The meeting called on the Ministry of Finance to consider a proposal by business operators to adjust tax and customs rates and suspend tax and customs payments as proposed by business operators.
Participants also called for higher taxes on luxury goods to boost revenue, according to a report on measures the government is taking to cope with the global recession and spur economic growth in Laos . Standing Deputy Prime Minister Somsavat Lengsavad presented the report during the meeting.
The Bank of the Lao PDR was assigned to work with other banks, particularly state-owned commercial banks, to encourage higher deposits in line with targets so credit of at least 1,496 billion kip could be released to drive economic growth.
The government intends to supplement the reserves of the Nayobai Bank for the purposes of poverty alleviation, while assigning the sectors concerned to ask for loans from the World Bank and other financial institutions.
The government will reduce loans to projects that are considered risky due to the current economic slowdown.
Regarding the garment industry, the government intends to cut profit tax for locally-owned entreprises from 35 percent to 20 percent, the same as that paid by foreign-owned businesses. The government will ask the National Assembly's standing committee to consider and amend domestic and foreign investment laws as well as the taxation law.
The meeting reached a consensus on the need to reconsider taxes and customs duties imposed on handicraft producers and improve handicraft products by establishing a handicrafts promotion centre and research centre. These centres would study standards and design, such as packaging, with a view to stronger competition in the global market.
In the service sector, the Lao National Tourism Administration was assigned to work with the sectors concerned to address the reasons for higher service costs in Laos compared to neighbouring countries, in a bid to cut tourism costs to an appropriate level.
Attendees were unanimous in their wish to increase the promotion of tourism through domestic and foreign media. The government will advise Lao embassies and consulates overseas to step up campaigns to attract more tourists to Laos , while reducing visa fees.
The government will extend the length of time a border pass is valid, and provide visa exemptions for friendly countries.
In the transportation sector, the Ministry of Public Works and Transport was assigned to manage transport costs in accordance with fuel prices. The ministry was asked to weigh haulage trucks on only one occasion, to save time and money and streamline the transport of goods. The government will facilitate export and import procedures by eliminating inspections and charges that are not appropriate or in line with regulations. Inspections will be reduced to cut duplication of effort and avoid repeated inspections and payments by business operators.
Meeting participants also considered the improvement of a draft presidential decree on the cost of concession and leasing of state land. A draft decree on state land lease and concessions, as well as a decree on the passage of people into and out of Laos and the management of foreigners, has been drafted. But these drafts have not yet been approved and will be further discussed.The meeting also considered a draft decree on associations and the sectors concerned were asked to improve the document to make it more systematic.
The meeting considered and approved in principle an amended decree on international non-government organisation management as well as a master plan on drug control from 2009-2013 and a prime ministerial order on drug control and prevention.
It also reviewed and inspected government administrative work over the past year and gave feedback on several issues.
Lastly, Party Secretary General and President Choummaly Sayasone advised participants to adhere to Party policy, while shouldering more responsibility for overcoming difficulties caused by the global financial meltdown.
By Souksakhone Vaenkeo (Latest Update February 23, 2009)
