In the past, although the Government of Lao PDR has issued numerous measures and mechanisms to improve the business environment in Lao PDR, particularly Prime Minister’s Ordinance on Regulatory Amendment and Coordination Mechanism of Business Operations in Lao PDR. No 02/PMO, dated 01 February 2018 and Trade Facilitation Road Map of Lao PDR for 2017-2022. However, the Doing Business report of the World Bank Group found that Lao PDR is now ranked 154 of 190 in the ease of doing business ranking and indicators was changed from two digits to three digits.
Thus, the improvement of its business environment remains significant to improve the management mechanisms of relevant sectors, which play a major role in determining business operation in Lao PDR in term of two digits achievement. This achievement aims to increase investment attraction and to achieve its goal of graduating from Least Developing Country status by 2020.
Trading across border indicator in Lao PDR has been a gradual improvement in the procedure of Customs Clearance. Trading across border measures time and cost associated with documentary compliance of import and export, border compliance and domestic transport. The Doing Business 2019 report of the World Bank Group also found that the time for documentary compliance to export and import decreased by 03 hours and time for border compliance to export and import decreased by 156 hours (decreased by 72%).
Lao PDR’s performance across the 10 Doing Business indicators are as follows:
1. Lao PDR improved its ranking in the area of Starting a business from 164 to 180.
2. Lao PDR ranking in the area of dealing with construction permits is now 99/190.
3. In the area of getting electricity in Lao PDR, Lao PDR now being ranked 156/190.
4. Lao PDR is now ranked 85/190 in the area of registering property in Lao PDR.
5. Lao PDR has made major progress in the area of getting credit now ranks 73/190.
6. Lao PDR still ranks 174/190 regarding the protecting investors.
7. Paying taxes in Lao PDR stands at 155/190.
8. The evaluation of trade cross borders of Lao PDR improves 76/190.
9. Enforcing contracts in Lao PDR stands at 162/190.
10. Resolving insolvency in Lao PDR remains at 168/190.
Source: Doing Business 2019 report: Training for Reform, World Bank group
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