Ministry of Industry and Commerce will speed up the improvement of policy aspects of exporting after becoming a full member of the WTO and in preparation for the ASEAN Economic Community in 2015. This is in order to increase regional and international integration, attract investment both internal and international and rapidly drive up economic growth. The Minister of Industry and Commerce indicated that traders in this new era are young people with business enthusiasm who are ready to become full entrepreneurs.
Dr. Nam Viyaketh, Minister of Industry and Commerce reported to the National Assembly Steering Committee Meeting in the morning of 27th June 2013 at the National Assembly on the readiness of Lao PDR to face WTO membership and the ASEAN Economic Committee in year 2015. Dr. Nam said that Lao PDR had joined the free trade concession with ASEAN under the agreement AFAS since 2007.
Presently it has concluded the achievement of negotiations in the 5th round, 8th category, and every member country is expected to widely open at least 80 sub-sectors . Lao PDR has opened 89 sub-sectors from 10 main sectors. For the 9th and 10 categories, it will open 24 more sectors in each in order to achieve all target 128 sub sectors in year 2015.
He also said that, in order for Lao PDR to benefit from international economic integration, there are two most important aspects: (1) respect and implementation of the law (Laws, Decrees and various regulations) and international obligations and (2) strongly enhance the business operation of the private sector because only the business sector can create definitive benefits for the country.
In particular, in order to derive those benefits, besides issuing party’s resolutions, it is most important that government should have an action plan for the related sectors and a policy, strategy and a detailed development plan for each classification, the most important of which is the elimination of restrictions and trade barrier.
Previously, the Ministry of Industry and Commerce made efforts to improve legal documents, create facilities for trade and services and raise the ranking in the world’s ease of operating business. Lao PDR was upgraded from 168th in Year 2011 to 163 in year 2013 compared with 158 countries in the world.
The Minister of Industry and Commerce has improved on Market Access and Expansion in order for Lao PDR to speed up creating new business entrepreneurs in an effort to produce, mediate and deal with business partners in the region and internationally aiming at a new generation that is well educated, fluent in foreign languages and proficient in using Information Technology (IT) and improving technical service knowledge in order to enhance the business and service professionalism and improve the standards and quality of the products.
In terms of the business situation in Laos since the party-government announced its open policy in 1986, the clear macro-economic indication was a constant and gradual growth for turning to industrialization and modernization with economic growth rate in 5 years (1986-1990) increasing approximately 4 to 8 percent per year. In 2001-2005 it increased roundly by 6 to 24 percent per year and in the period 2006-2010 it increased almost 7 to 9 percent per year. GDP was approximately 114 USD per head in 1985, 325 USD in 2000, and 1,069 USD in 2009-2010 rising to 1,349 USD in this fiscal year. International trade (Import-Export) in 1990 reached 246 million USD, exports reached 75 million USD and 4,332.2 million in year 2012 which consisted of an export value increase of 1,602 million USD compared with year 1990, a 21 fold increase. Foreign direct investment since 2000 included 64 projects, with an investment value of 51, 42 million USD. Investment value in year 2012 increased to 2,899 million USD.
Dr. Koukeo Akkhamonti, of the National Assembly Steering Committee, Head of Foreign Affairs Committee, congratulated the Ministry of Industry and Commerce for entering WTO membership in early year 2013 and for preparing for ASEAN Economic Community membership in 2015. Over the 15 years of negotiations for WTO membership, the government answered 1300 questions and improved the legal basis in line with WTO agreements introducing more than 90 regulations, 26 laws and 18 decrees. This effort allowed Lao PDR to officially become a member of the WTO.
It was recommended that government should review the implementation of Lao PDR’s regional and international integration policy in order to create stability for market expansion and an opportunity for building the capacity of Lao PDR for knowledge and business negotiations on the international stage and the dissemination of knowledge on regional and international economic integration so that it can be widely and enthusiastically embraced.
Source: Social-Economic Newspaper
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