Laos is preparing to make full use of the newly enacted Law on  Business  Competition, aiming to prevent and counter unfair  business  competition and  enable  Laos  to  take  a productive  role in Asean economic integration.

A  ceremony took place in  Vientiane this week to launch  the Law on Business Competition,  attended  by more  than  180  high-ranking representatives  from the public  and  private  sector as  well as international organizations.

Deputy  Minister  of Industry  and  Commerce  Mr Somchith  Inthamith  and German Ambassador to Laos Mr  Michael  Grau  co-chaired the meeting.

In  his  opening  remarks, Mr  Somchith  said  the ministry  was  the  main  body responsible  for  drafting  the law  and  had  partnered  with other  sectors  to  create  an effective piece of legislation. The  ministry  was supported  by  the  German Development  Cooperation project  ‘Competition  Policy and  Law in Asean’ which is helping Asean member states to draft competition laws.

As a result, Laos now has a law that  will  bolster  the country’s competitive edge as the  Asean  Community  takes effect, Mr Somchith added. Competition  is  vitally important  for  all  countries because  a  nation  that  is  able to  compete  successfully  can boost economic growth which in turn benefits consumers.

In  addition,  competition encourages  businesses  to  be innovative  and  produce  a variety  of  products  of  better quality and lower price.

However, these days a lot of  unfair  business  practices are  taking  place  that  have enabled companies to acquire and obtain a market share that leads  to  market  domination and a position of monopoly.

This  situation  can impede  the  progress  of other  businesses  as  well  as fix  prices  at  a  level  that  are higher or lower than cost, and enable  businesses  to  control the  quantity  and  quality  of products  and  other  aspects, Mr Somchith said.

In addition, such practices can force Small and Medium Enterprises (SMEs) out of the market.

The  Lao  government enacted  the  Decree  on Trade Competition  in  2014  but  as both  the  public  and  private sectors were poorly informed about  the  ins  and  outs  of competition  at  that  time, implementation of the decree was ineffective.

This  led  to  the  Ministry of  Industry  and  Commerce writing  a  new  and  tougher law  to  prevent  and  counter unfair business competition.

Mr  Somchith  said  he strongly  believed  that competition  policy  and  law were  essential  tools  for administering,  monitoring and inspecting competition in business activities in Laos.

This would  make competition  legal,  fair  and transparent  and  based  on equal conditions. This in turn would  protect  the  rights  and interests of the State, business operators  and  consumers  as well  as  foster  integration  at the regional and international levels, he added.

[Vientiane Times Report]