The fifth Trade and Private Sector Working Group Meeting took place on May 14, 2014 to review the implementation of the Diagnostic Trade Integration Study (DTIS), to provide an update of the Trade and Private Sector Development Roadmap, and to discuss the readiness of Lao PDR for the ASEAN Economic Community (AEC). The participants also discussed the guiding principles and the new approach for developing the 8th NSEDP. It was also discussed, the LNCCI’s plan to improve efficiency and effectiveness of the Public Private Partnership (PPP) under the Lao Business Forum.
The meeting drew more than 100 participants from Ministry of Industry and Commerce, Line Ministries, Implementing Agencies, Development Partners and other bilateral donors. The meeting was chaired by H.E Mrs. Khemmani Pholsena, Minister of Industry and Commerce and co-chaired by Mr. Michel Goffin, EU Charge d’ Affairs and EIF Donor Facilitator for Lao PDR and by German Ambassador to Lao PDR, H. E. Mr. Robert von Rimscha.
In her opening remarks, Mrs. Khemmani Pholsena emphasized that the meeting is taking place at critical juncture of social economic development in Lao PDR. As the Country has just completed the mid-term review of the implementation of the 7th NSEDP, and has recently initiated the development and the formulation the next long term development plans such as ‘Vision for 2030, the Development Strategy for 2016-2025, and the 8th NSEDP 2016-2020. the development of medium term and long term plans provides a good opportunity to reflect on past achievements and to identify more effective measures necessary for delivery of development outcomes.
The Minister also encouraged representatives of the government, development partners, and business community to actively participate in the policy dialogue forum and to use it as a tool for identifying the key constraints to trade, and enterprise development and for resolving those constraints through a transparent and collaborative dialogue process.
German Ambassador Robert von Rimscha renewed the development partners` call for better coordination between the government and the private sector. “It would be important to conduct the Lao Business Forum at more regular intervals and to follow up on the issues identified by participants.” Ambassador von Rimscha also discussed the current fiscal situation and pointed out that investors in resource-based parts of the economy should bear a fair share of the tax burden. “Those who contribute to diversifying the Lao economy through investments in manufacturing and services should not be unduly burdened by additional taxes, fees or legal requirements”, he said.
Michel Goffin, EU Chargé d’Affaires reiterates the importance of strengthening measures for transparency for promoting Lao competiveness, social and political stability in future. He also stresses that in time of economic difficulty, any new regulations and measures aimed at increase revenue collection fiscal consolidation should comply with the principles of transparency, predictability and non-discrimination and avoid additional burdens to private sector.
The TPSWG is one of ten formal sector working groups under the Round Table Process and is the main forum for policy dialogue between the Government of Lao PDR and Development Partners. Participants of the forum usually come from Government, Development Partners, the private sector, and civil society. Other formal sector working groups include Health; Education; Governance; Macroeconomics; Infrastructure; Illicit Drug Control; UXO; Agriculture and Rural Development; and Natural Resource and Environmental Management.
