Courtesy: MMG Lane Xang Minerals

Government working with private sector to reduce barriers to investment in Savannakhet Province

(KPL) Private investments are driving provincial socio-economic development in Savannakhet Province, with 36 per cent of total investment attributed to the private sector, says the latest data.

            Savannkhet boasts investment opportunities in organic agriculture, food processing, tourism and education as well as Special Economic Zone opportunities.

            Growth in private investments still faces significant policy, taxation and administrative hurdles, according to the Savannakhet Provincial Planning and Investment Promotion Department.

            The United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP)’s Poverty Environment Initiative (PEI), in close collaboration with the Investment Promotion Department of the Ministry of Planning and Investment and the Department of Promotion Investment in Savannakhet Province are working to improve conditions for private investment through public consultation.

            In December 2014, the PEI coordinated the first Public-Private Dialogue (PPD) aims at assessing the various barriers experienced by investors when initiating or conducting business operations in the province.

            The meeting was attended by investors working in the manufacturing, agriculture-forestry, transportation, trade, education and construction sectors and provided a platform to share their knowledge and experience of conducting business and overcoming challenges.

            Participants were also encouraged to contribute to the government’s investment promotion planning for 2015.

            Participants identified issues on the difficulties of doing business in Savannakhet Province, including the procedural and logistical constraints of obtaining Transportation Passage Permits, the shortage in the labour market, the need for labourers with assembly-line experience as well as the conflict of private education initiatives with the current Custom Law.

            Also raised included issues on taxation, access to government loans and the need for improved government procedures.

            The meeting was chaired by Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong and Governor of Savannakhet Province, Mr Suphan Keomixay.

            Speaking at the meeting, Mr Suphan encouraged the private sector to contribute actively to technology and skilled transfer.

            Dr Bounthavy stressed the importance of coordinating government agencies to monitor the compliance of business operations and encouraged the private sector to responsibly implement their investment projects.

            Private sector participants were also urged to improve competitiveness and contribute to human resource development in line with ASEAN standards.

            The PEI is supporting the government of Laos to address the barriers identified by PPD participants in Savannakhet and promote the quality of private investments to maximise economic benefits while minimizing social and environmental impacts throughout Lao PDR.

            By working with the MPI, the Ministry of Natural Resources and Environment and local authorities, the PEI assists the government to better promote, screen, negotiate, monitor and enforce compliance to position ‘quality investment’ that support the development of a healthy, transparent, competitive and inclusive economy.

            The PEI also supports the National Economic Research Institute to strengthen their ability to undertake quality research to inform development and investment policy.

KPL