US aid to boost Lao economic advancement
US aid to boost Lao economic advancement
American aid will continue supporting Laos in moderning its economy and preparing for regional integration following the signing of a new agreement.
Senior officials from the Ministry of Industry and Commerce (MOIC), the US Embassy and the United States Agency for International Development (USAID) formally launched the second Laos-US International and Asean Integration Project (LUNA II) yesterday.
The aim of the project is to promote investment and create more jobs by supporting the implementation of the country's trade and economic reform agenda.
A memorandum of understanding was signed in Vientiane by Deputy Minister of Industry and Commerce Mr Siewsavath Savengsuksa, US Ambassador to Laos Daniel A. Clune and US Agency for International Development (USAID) Regional Development Mission for Asia Mission Director Mr Michael Yates.
The ceremony was also attended by Minister of Industry and Commerce Ms Khemmani Pholsena along with US Embassy representatives and government officials from the relevant sectors.
Under the agreement, USAID will provide US$8.5 million for the LUNA II project and will contribute US$500,000 to the Trade Development Facility (TDF) II, a multi-donor trust fund administered by the World Bank and executed by the ministry.
Specifically, the USAID LUNA II project will support Laos' efforts to meet World Trade Organisation (WTO) accession obligations and fulfill commitments for establishing the Asean Economic Community by 2015, as well as further implementing requirements under the US-Laos Bilateral Agreement.
Mr Siewsavath expressed appreciation to the US government for its continued support of Laos' efforts in integrating with regional and international trading systems and reaffirmed its strong interest in continued collaboration with USAID.
“With this new project, we will strengthen the longstanding partnership between our governments as we continue to look for ways to enhance the business environment and increase opportunities for trade,” Mr Clune said.
The project seeks to help Laos integrate more fully into the multilateral trading system and strengthen the foundations for a modern, market economy.
Deeper integration and a more predictable and transparent rules-based system will help spur investments to generate jobs and economic growth and elevate Laos to a middle-income economy in line with government objectives.
The previous USAID trade project LUNA I, which was active last year, conducted over 70 workshops on transparency and public participation in legislative development.
Over 4,000 Lao officials and businesses benefited from training in intellectual property, agricultural and industrial goods standards and legislative transparency.
USAID regional Development Mission for Asia has supported Laos with economic reforms since 2007.
vientiane times
