Lao business operators need help with trade procedures
Lao business operators need help with trade procedures
Lao business operators are still facing challenges when it comes to importing and exporting their products as well as challenges in the transit industry.
Since Laos became a World Trade Organisation member in 2013 and integrated with the Asean Economic Community (AEC) at the end of last year, the government has formulated different trade promotion policies, according to the Ministry of Industry and Commerce.
They include trade facilitation, increased transparency, reducing the steps involved in the import and export document process and other trade obstructions in order to relate with basic principles of regional and international trade conventions.
The main challenges to business operation are the lack of coordination between the government and private sector while the government's p olicy implementation is not uniform nationwide and some Lao regulations still do not meet international conventions.
Product import and export approval is still difficult as there are many stages and businesses spend a lot of time running documents between the various involved sectors.
Tax documents are one of the main challenges, with major problems encountered in relation to the techniques, equipment and materials used in the document process, which are not in line with modern standards.
Phytosanitary Certificate approval is also a challenge and causes many difficulties for business operators in the provinces as the agriculture and forestry sector must inspect the products in the field.
Some provinces cannot issue the certificates so officials from the agriculture and forestry sector in Vientiane must go to them, which means these provinces have to pay their travel expenses. Some provinces charge higher fees than those charged in the capital.
The tax fee calculation is one issue cau sing business owners confusion as the rules and standards for calculating taxes remain unclear and lack transparency.
The government should be responsible for issues such as these and increase its coordination with the private sector through mechanisms such as the Lao National Chamber of Commerce and Industry, provincial chambers of commerce and industry, trade facilitation secretariat, and business forums.
Providing more information on the policies and regulations of the government is also key to reducing misunderstanding within the business sector and ensuring fairness for all traders.
