Industry experts call on Laos to strengthen financial services
Industry experts call on Laos to strengthen financial services
As Laos will gain full WTO membership status within a month, the country needs to bolster efforts in the area of financial services integration.
A workshop was held recently to discuss the commitments Laos has made in the financial services sector, in regards to the WTO, Asean and other regional trade agreements.
The meeting was held to pass on information to staff in the financial services sector and businesses to ensure that government officials and local businesses understand the country's obligations and gain the most from the coming changes.
The workshop took place at the Mercure hotel, organised by the Ministry of Industry and Commerce and the Foreign Trade Policy Department, and was supported by the USAID/LUNA Lao project. It was chaired by Deputy Minister of Industry and Commerce, Ms Khemmani Pholsena, and Deputy Governor of the Bank of the Lao PDR, Mr Sonexay Sithphasay
Ms Khemmani said the finance sector, especially the banking and insurance industries, are very important for the country's development.
“So it is important that we prepare thoroughly so that we can gain the maximum benefit from membership in the WTO and later on the Asean Economic Community.”
“We are aware of the challenges and will do our best to continue improving the banking sector to bring it in line with international standards,” Mr Sonexay added.
As a member of the WTO, Laos is required to open up the financial services sector, mainly in regards to insurance and banking.
In the insurance sector, foreigners will be able to have a maximum 51 percent share in companies that offer insurance and other related services for the first five years of WTO membership. The government also plans to improve the 2011 insurance law so that it complies with international requirements.
In the banking sector, Laos has already opened up in line with th e national socio-economic development plan. Laos has been progressively opening up the banking sector since 1990, when only three state-owned banks existed.
Now there are 31 state and private banks in Laos and many laws and regulations on banking, finance and related industries have been improved since then.
The financial services sector is a vital component of the country's future development. According to information from the Ministry of Industry and Commerce, this sector accounts for about 38 percent of GDP and 25 percent of exports.
Exports in the services sector have been growing at a rate of 6 percent annually, of which trade services account for 3.7 percent. Retail and wholesale services are also a main source of job creation.
vientiane times
