Vientiane, 22 June 2005 — A ground-breaking meeting was held in Vientiane today that demonstrates the government’s strong commitment to private sector development. In this one-day meeting, more than 40 Vientiane business leaders heard presentations on the new Enterprise Law and gave their opinions on it. The event was organized jointly by the Mekong Private Sector Development Facility (MPDF) and the Ministry of Commerce.
The meeting was opened and chaired by the chairman of the Lao Enterprise Law drafting committee, Vice Minister of Commerce, Mr. Sisaliao Savangseuksa. This meeting, and two others held in Pakse and Savannakhet to solicit feedback on the new law, are among steps the government is taking to make sure the new legislation is effective and business friendly.
Other pioneering aspects of this law-making process have been consultations with an international expert to ensure the legislation represents best international practice and information-sharing exchanges with the team drafting similar legislation in Vietnam. Both of these initiatives have been made possible through technical assistance provided by MPDF, a facility of the International Finance Corporation that promotes private sector development in Lao PDR, Vietnam and Cambodia as a means of reducing poverty. Once the new legislation is passed in September 2005, MPDF will continue helping the government to draft necessary sub-laws and ensure that the legislation is implemented as effectively as possible. As part of the implementation processes, private business owners in Vientiane and other major cities will continue to be consulted about the effectiveness of the legislation.
In Wednesday’s meeting, business owners expressed strong enthusiasm for the consultation process. A number said that this was the first time the government had involved them in the law making process and they consider this a very good sign. Many said that if the new legislation was as effective in practice as it appeared to be on paper, all businesses in Lao will be able to operate much more efficiently and new local and foreign investment would be encouraged.
The meeting agreed that the business community and the law drafting committee will continue working together in the coming weeks to further improve specific articles of the draft law before the final draft is submitted to government for approval at the end of July.
The establishment of the Lao Business Forum in March of this year is another indication of the government’s commitment to encouraging private enterprise. The twice-yearly Forum, which will hold its first meeting in the next few months, will provide an ongoing mechanism for government and the private sector to discuss needed improvements in the business climate. In between Forums, Working Groups in key sectors (manufacturing, services, trading, tourism, energy, and mining) will meet on an on-going basis to identify problems and solutions for discussion at the next Forum. The Forum and its Working Groups will also enable the government to communicate its requirements more easily.
To help launch the Forum and the Working Groups, the government of the Grand Duchy of Luxembourg, and IFC have provided two years of funding. MPDF will serve as the Forum’s secretariat, with responsibilities that include arranging Forum and Working Group meetings and conducting selected research requested by the Working Groups. MPDF has also begun publishing a quarterly Business Issues Bulletin in English and Lao, in collaboration with the Lao National Chamber of Commerce and Industry that discusses key business issues and presents a wide range of stakeholder opinions on these issues.
These types of initiatives are sending a strong signal to the business community that the government is committed to improving the business climate, and to showing the world that Lao PDR is a good place to do business.
