Laos, development partners tighten macroeconomic cooperation
Laos, development partners tighten macroeconomic cooperation
Top Lao economic policy makers met with foreign development partners in Vientiane yesterday to discuss macroeconomic issues in the country.
Deputy Minister of Planning and Investment Dr Khamlien Pholsena and Asian Development Bank Country Director, Mr Chong Chi Nai co-chaired the executive consultation meeting between Laos and its development partners at the Lao Plaza Hotel yesterday.
“The main objective of today's meeting is to tighten the relationship and cooperation between the government and the development partners in order to encourage involvement from all sectors in terms of strengthening macroeconomic management. This is necessary in order to maintain the National Socio-Economic Development Plan and reach the Millennium Development Goals,” Dr Khamlien said in his opening remarks at the meeting.
According to the meeting organisers, Lao economic policy makers and development partners discussed measures to boost private investment in the country. The government considers that private sector investment should account for around 50 percent of the total investment.
The Lao government has introduced a number of measures to boost private investment, including establishing a single widow service, which will allow local and foreign investment to seek investment permission more easily.
The meeting participants also discussed how to improve budget preparation, the management of budget expenditure and the evaluation of public investment projects. The Ministry of Planning and Investment established the Evaluation Department 11 years ago.
Over the past years, the Evaluation Department has been working extensively on the evolution of public projects.
According to a press release from the Ministry of Planning and Investment, the consultation meeting is a part of the preparation process for Laos to host a roundtable meeting in November; an important meeting where development partners typically make commitments to provide assistance to Laos.
Over the first six months of the fiscal year, the Ministry of Planning and Investment has established an investment calling list, which can help foreign investors learn about the investment potential in Laos. The list also provides information for government leaders aiming to attract more foreign investment into the country. The ministry is also improving investment regulations, making it easier for both local and foreign investors to seek investment permission.
Over the first six months of the 2012/2013 fiscal year, Laos has approved 98 local and foreign investment projects with funds totalling around US$2 billion.
Lao economic growth is projected to reach eight percent this fiscal year, 0.3 percent lower than was originally forecast. Natural disasters such as floods and declining rice production output have forced the government to lower the growth forecast for this fiscal year.
vientiane times
