A discussion meeting between the Lao and Thai Government and Business sectors was held on 13 March 2014 at the Lao Plaza Hotel, Vientiane Capital. The meeting was under the co-chairmanship of Dr Nam Viyaketh, Minister, Ministry of Industry and Commerce of Lao PDR and Mr. Phitsanou Chanvithan, Ambassador, Thai Embassy to Lao PDR. This meeting comprised a small discussion panel between Thai business sectors who are bringing investment and trade into Lao PDR and representatives from some relevant sector from government. At the meeting the Department of Customs, the Department of Enterprise Registration and Management and the Department of Labor Management presented on government policy related to trade and investment. As well as those sectors mentioned there were also representatives from the Department of Taxation, the Department of Transportation, the Department of Import and Export, the Department of Domestic Trade and the Department of Foreign Trade Policy participating in the meeting.
The exchange meeting was conducted in a good atmosphere and with straightforwardness. The Thai business sector raised problems for discussion with the Lao Government in order to get clarification on outstanding issues of which the most interesting was on duty-tax. The Thai business sector is interested in listening to the definition of duty for each type of commodity of Lao PDR under CEPT after AEC 2015. Additionally, over discussions, there were views that duty collection policy in each province of Lao PDR is implemented in different ways and that the method for calculating duty in Lao PDR is not accurate enough, which, in general, makes it difficult for business to calculate the cost of making investment decisions in Lao PDR. Furthermore, questions on the policy on re-call for duty and consumption tax were raised after the imported goods were destroyed, for example, in the case of imports by Coca Cola due to expiry of use-by date. The Thai business sector also raised the issue of labour in Lao PDR due to the smaller population and lack of labour skill. Therefore, the Thai business sector may be interested in investing in the development of labour skills in Lao PDR.
Dr. Nam Viyaketh, Minister, Ministry of Industry and Commerce said that Thailand is still a main trading partner of Lao PDR. In fiscal year 2012-2013 Lao-Thai bilateral trade value reached 5.06 billion USD, an increase when compared with fiscal year 2011-2012 which reached at 2.24 billion USD while the value of Lao exports reached 1.35 billion USD and imports reached 3.70 billion USD. The trend of bilateral trade between both countries has developed continuously and the meeting this time is part of a plan to boost the value of bilateral trade increasingly. It is also another importance stage for the Lao Government and the Thai business sectors to exchange views and together address the obstacles in order to enhance bilateral trade. Additionally, Minister Dr. Viyaketh also offered to conduct a study in order to turn Lao-Thai trading to become fairer progressively via the banking system.
Mr Phitsanou Chanvithan, Thai Ambassador to Lao PDR said that there is great need for Thai investors to come and invest in Lao but the various problems that were raised for discussion this time are the main problems when coming to do business in Lao PDR. The Ambassador also added that Thailand is ready to increase investment by Thai businessman in sectors for which Lao PDR still lacks suitable education, in order to improve labour skill, friendship and cooperation.
Information Source: Economic Commerce daily newspaper issued on 14 March 2014.
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