Laos to modernise investment management
Laos to modernise investment management
The Lao government has vowed to modernise investment management next fiscal year, as part of its efforts to boost private investment in the country.
Ministry of Planning and Investment Office Head, Dr Kikeo Chanthaboury said yesterday that the government had approved budget funding for the ministry to improve its IT infrastructure and computer software.
The move forms part of its efforts to provide better services to both local and foreign business people seeking investment opportunities in Laos.
Once the investment management system is modernised, the ministry expects to be able to provide better and faster services for investors in Laos, he said.
He said that there was a need for the government to modernise the investment management sector so as it can fulfill political commitments of the Party to modernise and industrialise the nation.
“The ministry expects that we will complete the necessary basic infrastructure by 2015,” he said.
He explained that the modernisation of the investment sector would help enable the country to further integrate with the regional and world communities.
Laos is expected to become a member of WTO at the end of this year and plans to join Asean Free Trade Area in 2015. The modernisation and improvement of the investment sector will enable the country to take advantage of the increased regional opportunities.
Investment policy makers said that the improved capacity of the ministry will enable it to mobilise more investment funds to further boost economic growth.
According to the 7th Five Year National Socio-Economic Development Plan, Laos has to mobillise investment funds of 127 trillion kip (US$15 billion) in order to secure GDP growth of 8 percent annually from 2011 to 2015. It is estimated that between 50 to 60 percent of this figure must come from the private sector.
In 2011, Laos approved 288 investment projects worth around US$2.7 billion in total, the majority of which were in the mineral extraction and commercial agriculture industries. The top investors in 2011 were Vietnam and China, according to an annual report from the Bank of the Lao PDR.
According to a report by the Minister of Planning and Investment, Mr Somdy Duangdy to the National Assembly conference last month, not only investment management will be modernised, as similar reforms are underway in the planning and cooperation departments.
He said the modernised departments will enable the ministry to deliver convenient, fast and transparent services to both Lao and foreign investors. The improved IT infrastructure will also help the ministry to enforce laws and regulations concerning planning and investment.
Mr Somdy said the Lao National Statistics Bureau would also be modernised, so that it can deliver accurate and timely statistics and data to both the government and private sectors, which need the information to lay down policy and conduct investment planning.
The Lao People's Revolutionary Party approved four breakthrough approaches during its 9th Party Congress, aiming to eliminate administrative barriers to productivity and economic development, creating a better investment climate.
vientiane times
