New leasing decree will let poor own valuable property
New leasing decree will let poor own valuable property
A new revision of the leasing decree will offer foreign investors an opportunity to invest in the Lao leasing sector and enable disadvantaged people to own valuable property, a senior official has said.
“In a time when the leasing business is becoming quite renowned by members of the public in Laos, the draft leasing decree will now also meet the international standard,” Head of the committee drafting the new decree Ms Keasorn Manivong told Vientiane Times yesterday at a consultant workshop.
More than 70 participants from line ministries, Vientiane authorities and legal bodies were present at the workshop to share their opinions on the drafting of the revised leasing decree.
The new decree will be continuously revised until it has been designed with a focus on integrating with regional and international standards.
“It is certainly important to adjust the decree on the leasing business because Laos is preparing for the arrival of the Asean Economic Community next year,” Ms Keasorn said.
Comments made by participants at the workshop were to be taken into consideration in the drafting of the law.
Ms Keasorn, who is also Deputy Director General of the Financial Institution Supervision Department, said the first leasing decree was introduced many years ago but it was not regularly used.
“The new edition of the leasing decree will surely be set to target the protection of rights and benefits of all relevant parties comprising customers, leasing companies and financial suppliers,” she said.
A special highlight of the new decree is that it will now allow disadvantaged people to own valuable property.
For example, poor farmers will be able to own rice harvesting machines because they can access down payment.
“Most importantly, the government aims to see an increasing number of both domestic and foreign investors in the field of the leasing sector,” Ms Keasorn said. She said there were still few Lao leasing operators.
Ms Keasorn said the draft decree would be handed to the Ministry of Justice for editing before it was sent back to the Bank of the Lao PDR. It would then be forwarded on to the government for further approval.
“I think this latest leasing decree may be able to be used within this year,” she said.
The government has already set itself the goal of attracting more foreign leasing operators as part of its strategic plan for the socio-economic development of the country.
Businesses must have good knowledge of Laos' decrees and laws if they are to operate their business smoothly, Ms Keasorn said.
The day-long workshop was chaired by the Bank of the Lao PDR's Director General of the Financial Institution Supervision Department, Dr Akhom Praseuth.
vientiane times
