Infrastructure and access to market information key to integration
Infrastructure and access to market information key to integration
The Ministry of Industry and Commerce (MOIC) yesterday launched a new project to strengthen the national quality infrastructure (NQI) and industrial statistics in Laos, in preparation for the coming regional integration.
The project is the first Tier 2 scheme in Laos under the Enhanced Integrated Framework (EIF), aiming to respond the country's trade and development priorities as set out in the 7th National Socio-Economic Development Plan VII.
The project is also in line with the Trade and Private Development Roadmap 2012, according to the Coordinator of the EIF Executive Secretariat at the World Trade Organisation, Ms Hang Tran.
“It is to support government efforts in improving the country's NQI and statistical and analytical capacities, which are recognised as among the country's main development constraints,” Ms Hang said at the project launch ceremony.
To implement the project activities, the EIF will contribute over 20.16 billion kip (US$2.5 million) in 2014-2016. The Lao government will support the project with about 7 billion kip (US$871,200) of in-kind contribution, according to a press release.
Deputy Minister of Industry and Commerce, Ms Khemmani Pholsena welcomed the support. “This assistance will be of advantage to our development, especially the preparation for the Asean Economic Community and the new, quality products that will be able to enter overseas markets.”
“Once the state sector's improvement is complete, it will have facilities to help the private sector with aspects such as the reduction of production costs and increased competition capacity,” Ms Khemmani said.
“It will allow technicians and equipment to certify the standards of local producers and give production certification before supplying them to the market.”
Overall implementation responsibility lies with grant recipients the National Implementation Unit (NIU),and the MOIC's Planning and Cooperation Department. Project activities will be implemented by the respective technical departments, namely the MOIC's Industry and Handicraft Department and the Ministry of Science and Technology's Standardisation and Metrology Department.
“The project is just another stepping stone for an improved business environment. It addresses market access issues for the private sector through providing better access to certification and testing services,” according to the MOIC's Planning and Cooperation Department Director General, Mr Sirisamphanh Vorachit.
As these services are presently carried out abroad, mainly in Thailand and Vietnam, for Lao traders they are expensive, time-consuming, and require extensive logistical efforts. This currently puts Lao traders at a disadvantage and harms the private sector in tapping into new markets and participating in regional and global supply and value chains, the press release stated.
With this project the EIF continues its successful commitment in Laos since 2006, starting under Tier 1 with extensive capacity building, support to trade mainstreaming and strategy, and assistance in establishing the National Integrated Framework Governance Structure.
vientiane times
