International donors, agencies and the private sector have praised the government's success in helping Laos to weather the global financial crisis and maintaining solid GDP growth of over 6 percent last year.
“Through the hard times of the global economy, the private sector in Laos is growing and proving itself an important driver of economic development,” said Mr Simon Andrews, International Finance Corporation (IFC) Regional Manager for Laos, Cambodia, Thailand and Vietnam.
Mr Andrews was speaking at the 6th Lao Business Forum last Friday in Vientiane, attended by some 200 representatives from government, private sector, embassies and donor agencies.
Standing Deputy Prime Minister Somsavat Lengsavad also attended the forum and was the chairman of the meeting.
“The forum is a good example of how by working together, government and the private sector can focus on issues of mutual concern for the benefit of all,” Mr Somsavat said.
Talks focused on adminis-trative, legal and regulatory reforms raised by working groups.
Mr Somsavat said “This public-private dialogue process has been a successful one over the last years, upon which the government is making significant steps in many areas to improve the business environment.”
L ao National Chamber of Commerce and Industry (LNCCI) President, Mr Kissana Vongsay, said “All public and private stakeholders need to work together and focus on solutions to alleviate constraints that limit economic growth.”
The business community recognised the government's efforts in promulgating the amended minerals law in December and asked the government to continue its efforts to pass a revised insurance law and other key legislation affecting their business operations.
The Finance Ministry indicated the draft insurance law constitutes life and non-life policies, legal environment, compulsory products, set-up of an insurance commissioner and oversight committee, among other things. The draft insurance law will be considered by June of this year.
The services and trade working group requested actions to control the import of counterfeit products and raised concerns about cumbersome import licensing procedures at customs checkpoints and the need to streamline processes.
Customs Department Director General Santiphab Phomvihane announced that in a year's time a new computerised system will be installed at all border checkpoints.
Planning and Investment Deputy Minister Dr Bounthavy Sisouphanthong said “The forum has been effective due to the public and private sectors' concerns for the well being of the economy and society. It will work even more effectively for the benefit of the private sector.”
“It has built consensus, trust and understanding between key stakeholders enabling economic development,” Mr Andrews said.
The meeting also heard from the French, Japanese, and Vietnamese Chambers of Commerce regarding their views on the investment climate. A common note was the need to improve the implementation of laws and regulations and to strengthen human resources in Laos.
Mr Kissana said LNCCI continues constructive dialogue among the business community and the government to ensure that policies support private sector growth, especially under the current difficult global economic climate.
“IFC will continue to coordinate with the LNCCI and Planning and Investment Ministry on the forum's process requirements and provide financial assistance,” Mr Andrews said.
