Gov't needs more reforms to promote investment diversification
Gov't needs more reforms to promote investment diversification
Laos needs to undertake some necessary reforms and updates to its investment policy and laws to create greater transparency for use as a tool to promote economic diversification and foreign investment projects in Laos.
In the presentation of the World Bank's Senior Trade Economist Mr Mombert Hoppe at the 8th Trade and Private Sector Working Group Meeting in Vientiane yesterday, he suggested that Laos will need to do more with a clearer investment policy in some law articles regarding domestic and foreign investment projects.
“All necessary documents should be centralised and easily accessible and the websites of the authorities in charge of investment must be continually kept updated,” he said, adding that improving the business policy and the business environment are key factors in attracting foreign investment.
He also added that improvements to the law on investor protection and dispute resolution must also be prioritised to increase the appeal of investment promotion.
As part of the promotion of the trade sector in Laos the Lao government, in collaboration with the Trade and Private Sector Working Group, is s eeking to find the key issues affecting trade and private sector development in Laos.
At the 8th Trade and Private Sector Working Group Meeting in Vientiane, the government, its development partners and the private sector together reviewed progress in sector programme implementation and discussed future priorities.
In her opening remarks, Minister of Industry and Commerce Ms Khemmani Pholsena said the meeting was to review the sector's implementation progress over the past fiscal year and also discuss sector priorities for the next fiscal year and the next five years.
“The outcome of this meeting will form the basis for our final Sector Working Group report, which will be our sector's inputs to the background document and joint statement of our sector for the upcoming High Level Roundtable Meeting next month,” she said.
She also said that the Lao economy has been growing rapidly and has now become a lower middle income economy but it is still less diverse than it should be, despite a number of reforms to improve the environment for business over recent years.
“Our ability to attract foreign direct investment compares favourably with others in the region and investment is entirely resource-seeking rather than efficien cy-seeking or about 80 percent of foreign direct investment is invested in the mining and energy sector,” Ms Khemmani said.
She also noted that much more needs to be done to promote economic diversification from the resource sector through attracting quality investment and creating more quality jobs outside the resource sector.
The meeting was also co-chaired by German Ambassador to Laos, Mr Mic hael Grau and EU Charge'de Affairs and Enhanced Integrated Framework (EIF) Donor Facilitator for Laos, Mr Michel Goffin.
Mr Grau also referred to the future support of vocational education development in Laos through various major assistance projects, funded by Germany, as a priority to enhance skilled workers to meet the demands of various companies at the specific economic zones in Laos.
