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Lao PM outlines agenda to drive growth

Updated:2018-04-26 10:28:30   vientianetimes.org.la

Thongloun Sisoulith, Prime Minister of Laos has told relevant bodies to carry out studies to establish appropriate bank loan interest rates favourable for boosting business operations and investment.

The premier made the suggestion at the two-day government monthly meeting for April that ended on Tuesday in Vientiane.

The relevant departments were told to create conditions to enable businesses to access financial sources more easily.

The suggestion was made amid reports suggesting that Lao small and medium enterprises have been encountering difficulties in accessing bank loans hindering the development of the SMEs.

Thongloun pressed on the need to intensify action to improve the ease-of-doing-business climate in an attempt to attract greater private investment, especially foreign investment to drive economic growth.

The cabinet was told to manage inflation and exchange rates at levels conducive to socio-economic development.

In an attempt to meet revenue collection targets, the premier ordered action to close loopholes preventing revenue leaks as well as tax and customs avoidance.

The head of the government told the Lao ministries and sectors to take prompt action to work with their Vietnamese counterparts to realise bilateral cooperation of projects, which the two governments have agreed upon.

They include the planned development of the Vung Ang seaport project in Vietnam’s central Ha Tinh province – a joint venture project to enable Laos to access sea trade routes as well as the planned Mekong Hydropower project in Luang Prabang province. 

The relevant Lao sectors were told to work with the Chinese side to realise assistance projects, which China has pledged to provide during the state visit to Laos by President Xi Jinping in November last year.

During the visit, the Chinese side announced the provision of financial assistance amounting to 4 billion yuan (5,011 billion kip) for the next three years.

PM Thongloun told the bodies concerned to request more grants or loans from Beijing for the compensation of local people affected by the construction of the Laos-China Railway project.

The meeting was briefed on preparations to issue electronic visas (E-VISA).
Participants heard and discussed a report on preparations to host this year’s Roundtable Meeting – a venue where the Lao government and development partners meet, with the government disseminating its development priorities to mobilise assistance and support.

PM Thongloun told the relevant bodies to ensure the most effective use of official development assistance (ODA) to maximise its benefit for the country’s socio-economic development.

The cabinet was told to carry out inspections into audited state investment projects in order to ensure correct implementation and to disburse costs for those completed projects.

The premier told the ministries and sectors to make proper preparations of reports to be presented at the upcoming National Assembly (NA)’s fifth ordinary session.

According to the schedule, the government will present 11 drafted laws for the NA to debate towards approval.

In addition, the government was set to report a number of important issues to the parliament. The PM told the ministries and sectors to prepare necessary factors to boost agricultural production during the upcoming rainy season. 

The premier told the relevant sectors to strictly enforce a minimum wage increase from the present 900,000 kip to 1.1 million kip a month, which the government approved recently.

Editor: John Li

Keywords:   growth Laos