Thai investment approvals in Lao slowed by red tape
Thai investment approvals in Lao slowed by red tape
Thai business operators are struggling to get businesses up and running in Laos because of the time taken for investment approvals from multiple levels and sectors of government.
This is despite the fact the Lao government has established the single window system to cut down on the amount of documents submitted but business operators still complain of the slow approval process dealing with the relevant sectors at various levels, Minister Counsellor (Commercial) of the Royal Thai Embassy to Laos, Ms Pimol Pongkongkaew told Vientiane Times last week.
This lost time for business operators is important because they could be using it to concentrate on other work, she said.
It's different for Lao business operators as they generally have a lack of attention to detail when it comes to their businesses dealing with regulations, said Ms Pimol.
For Lao trade to develop and integrate with the region, particularly the Asean Economic Community starting next year, Lao business operators should learn more about business operation regulations and any mechanics for business development under government policies, she recommended.
However, Lao-Thai trading is constantly increasing with closer cooperation between the two countries.
The two countries' trade value was up to about 20 trillion kip (US$2.5 billion) in the first six months of this fiscal year (2013-2014), according to a draft report on national social and economic development from the Ministry of Planning and Investment.
The US$2.5 billion represents a 3.47 percent increase compared to the same period last fiscal year.
Last fiscal year (2012-2013) the trade value between the two countries reached more than 40 trillion kip (US$5.10 billion).
The US$5.10 billion was a large increase compared to fiscal year 2011-2012 when the value of trade was about 17.92 trillion kip (US$2.24 billion), more than doubling the trade.
The main imported products from Thailand included fuel, vehicles and spare parts, raw materials for garment production, electricity, food and drinks, electronic goods and equipment for industrial use and agricultural purposes.
Lao's main export products include agricultural produce such as maize and cassava, timber and wood products, electricity and minerals such as copper.
According to the latest plan issued by the two respective ministries, they have set bilateral trade targets at about 46 trillion kip (US$5.77 billion) by 2015.
vientiane times
