lncci

6^th Lao Business Forum

Vientiane Capital – The Lao National Chamber of Commerce and Industry (LNCCI) in cooperation with the Ministry of Planning and Investment and International Finance Corporation (IFC) today organized the 6^th Lao Business Forum (LBF) to discuss measures to improve the business environment in Lao PDR.

Bringing together around 200 representatives from government, private sector, embassies and donor agencies, the 6^th Lao Business Forum focused on a discussion of administrative, legal and regulatory reforms, raised by its working groups.

H.E.Mr. Somsavat Lengsavad, Standing Deputy Prime Minister of Lao PDR and chairman of the meeting 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”. He emphasized that the LBF 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.

“As the new LBF Secretariat is now with LNCCI, LNCCI continue constructive dialogue among the business community and the government to ensure that policies support private sector growth, especially under this difficult global economic climate. All public and private stakeholders need to work together and focus on solutions to alleviate constraints that limit economic growth,” said Mr. Kissana Vongsay, President of the LNCCI.

The business community recognized the government’s efforts in promulgating the amended Minerals Law in December 2009 and requested the government to continue its efforts to pass the revised Insurance Law and other key legislation affecting their business operations. The Ministry of Finance indicated that 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. Mr. Santiphab Phomvihan, Girector General of Customs Department, Ministry of Finance announced that in a year, a new computerized system will be installed at all border checkpoints.

“This Forum has been effective due to both the public and private sectors’ concerns for the well being of the economy and society as a whole,” noted H.E Dr. Bounthavy Sisouphanthong, Vice Minister of Planning and Investment. “I believe the LBF will work even more effectively for the benefit of the private sector as the LBF and Provincial Public-Private Dialogue (PPPD) Secretariats have been under the responsibility of the LNCCI.”

The Forum 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 the country.

At the forum, international donors, agencies and the private sector praised the government’s success in maintaining Lao’s resilience during the global financial crisis and its solid GDP growth rate of over 6% last year. “Through the hard time of the global economy, the private sector in Lao PDR is growing and proving itself an important driver of economic development,” said Mr. Simon Andrews, IFC Regional Manager for Lao PDR, Cambodia, Thailand and Vietnam. “The LBF has built consensus, trust and understanding between key stakeholders enabling economic development. In support of the transition of the LBF Secretariat from IFC to the LNCCI, IFC will continue to coordinate with the LNCCI and Ministry of Planning and Investment on the forum’s process requirements and provide financial assistance to the Secretariat.”

About Lao National Chamber of Commerce and Industry

The Lao National Chamber of Commerce and Industry was established in 1989 and has 1,057 members. The principal responsibility of its Board is to maintain the links between local industries and government ministries and agencies with the view to expand trade and investment. The Chamber also seeks to eliminate impediments to the competiveness of Lao enterprises in international markets. It is also authorized to issue Certificates of Origin for locally manufactured products.

About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC’s new investments totalled $14.5 billion in fiscal year 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org

About Lao Business Forum

The Forum was established in March 2005, through an agreement between the government of the Lao PDR and the International Finance Corporation. The Lao Business Forum’s aim is to facilitate a structured and ongoing public-private dialogue between the government of the Lao PDR and the business community, including both foreign and domestic companies, to improve the business environment.