Revised law to boost processing industry
Revised law to boost processing industry
Local and foreign investors will find it easier to set up manufacturing plants in Laos after the National Assembly approved a government proposal to cut the amount of re d tape required to get an operations certificate.
The move aims to implement the Party and government policy that the government must change from a controller to a facilitator, aiming to boost the development of the processing industry in the country, which will contribute to continued GDP growth.
The assembly approved the revised Law on the Processing Industry on Friday, giving the green light for the Ministry of Industry and Commerce to streamline the processes of granting permission for investors to establish processing factories in the country.
The law drafting committee was not able to provide details on how many days it will now take to grant investors permission to establish factories in Laos. However, businesspeople expect that it should not take more than a month to get permission to build a processing factory.
Many business people have complained that they were having diffi culties getting permission to build factories in Laos as there are many steps they have to follow, costing time and money. Many countries in the region make it easier for investors to build factories as they want to promote goods production, both for domestic consumption and export.
The revised Law on the Processing Industry also promotes the use of m odern technology in the Lao processing sector, which will not only enable businesspeople to produce more goods but also help to protect the environment.
The revised law also sets a number of measures to ensure that new factories will not create pollution or have serious environmental impacts. New factories must be equipped with measures to control air and water pollution while they should also be located far from residential areas in dedicated industrial precincts.
One of the major environmental problems which the revised law will address is to control the use of chemical substances. The revised law empowers the officials concerned to inspect the use of dangerous chemical substances in factories in Laos.
The law drafting committee said that the revised law on industrial processing also aims to promote the industry's development, adding that it offers a number of incentives to promote investment in processing factories as a means to boost GDP growth.
Laos aims to become one of the food processing bases in the region as the country has huge agricultural potential. The country is encouraging people to grow more cash crops but most of the farmers face difficulties selling their produce as there are not many processing factories in the country.
The government has also established more than 10 special economic zones, aiming to promote the development of the processing industry for export. The revised industrial law will make it easier for investors to run businesses in Laos.
Industry is the second fastest growth sector in the Lao economy. In the 2012/2013 fiscal year, the sector saw about 7 percent growth, accounting for a total of 28 percent of the economy.
vientiane times
