The Lao- Japan Public and Private Sectors Joint Dialogues:
-----For further enhancing investment from Japan to Laos----
THE PROGRESS REPORT
OF
THE ACTION PLAN
FROM THE LAO SIDE
December 17, 2010
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
- Legal and policy transparency and predictability
→ ACTIONS BY THE LAO SIDE
(1)The GOL will establish a kind of ‘clearinghouse-center’ which is to render “one-stop-service” to the investors the information as to legal affairs, tax matters, labor issues, licenses and approvals such as the one relating to land use by mid-2009. The information is to cover all the governmental ministries and agencies of the Lao PDR.
(2)The GoL will make the list of the responsible governmental departments in charge of granting the necessary official licenses and approvals by publishing a booklet by mid-2009. Ministry of Planning and Investment will show the above information on their website also by mid-2009.
→ PROGRESS OF THE ACTION PLAN BY THE LAO GOVERNMENT
(1)Currently, the one stop service unit under the Investment Promotion Department provides the data service that relates to investment such as providing the investment application form, recommendations and explanation on the procedures and progress of the consideration in each step. At the same time, unit provides the comprehensive data to investors regarding the customs, taxation, importation of raw material and machinery, how to obtain VISA, Foreign ID for the investor and other related information on investment. Recently, a JICA expert started working at MIP as an adviser Since September 2009 to assist IPD and provide information and data to Japanese Investors.
(2)Ministry of Planning and Investment (Investment Promotion Department): will revise the Investment Guideline Book for Lao PDR, after the completion of the implementing decree of the new investment law. The name list of relevant government offices which is in charge of issuing licenses and certificates will be published on the revised version of Investment Guideline Book.
PROGRESS OF 2010
(1)The Prime Minister Office has issued the Notice dated September 01, 2010 giving instruction to MPI to improve its existing One-Stop-Service (OSS) Unit of IPD by having competent representatives from line departments sitting together at the OSS Office of MPI. IPD has incorporated the governing regulation of the said OSS into the draft Implementing Decree on the new Investment Promotion Law. MPI cabinet is now considering the possible office space available to accompany this to be newly expanded OSS office in MPI. This new OSS will also serve as a consultation window on issues and matters related to investment and business operations.
(2)MPI is now publishing the Investment Magazines on a quarterly basis and latest copies of the special edition in November 2010 can be obtained from MPI cabinet. In addition, IPD is publishing its quarterly newsletter providing information on its investment promotional activities. IPD will also issue its new Investment Guide booklet after the completion of the implementing decree of the new investment promotion law.
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)
ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
1.Legal and policy transparency and predictability
1.2 To make public the laws and regulations as well as measures concerning investment, e.g. favorable treatments for foreign companies, in an easily accessible way. For instance, it will be useful to timely up-date the web-site of the Lao Government and to issue the official gazette.
→ ACTIONS BY THE LAO SIDE
(1)All the Ministries/Agencies will consider opening their web-site in English, if they do not have it in the present, by mid-2009.
(2)The GoL will actively update the information on laws, decrees, rules and regulations on investment on the website of the Ministries/Agencies concerned without delay each time there take place any change or modification to them.
(3)The GOL will continue to publish revised investment guideline and brochure, including Law and Decrees related to investment, at least once a year in English.
(4)The GoL will consider issuing the official gazette containing all the official governmental decisions, unless they prejudice Lao national security and other vital national interests, on the monthly basis within the year 2009.
(5)The GoL will promote “E-Government” and will have a tangible outcome by the end of 2009.
(6)The GoL will make sure that the Embassy of Lao PDR in Japan will have the above-mentioned investment guideline, brochure and so on to facilitate the investment-related information to Japanese investors.
→ PROGRESS OF THE ACTION PLAN BY THE LAO GOVERNMENT
Some ministries have their own website, but some are constructing their website as follows:
- Ministry of Planning and Investment, Investment Promotion Department:
- Ministry of Finance: Customs Dept:
- Ministry of Industry and Commerce:
- Ministry of Energy and Mine, Energy Promotion and Development Department: Department of Geology and Mine: Department of Electricity: Mines Dept will have its website in 2010.
- Ministry of Public Security, Immigration Dept:
- Ministry of Justice is constructing the website and data center (with the collaboration of Vietnam)
- The Bank of Lao PDR:
- Ministry of Information and Culture:
- Ministry of Public Health:
- Ministry of Education:
- Ministry Agriculture and Forestry:
- Public Administration and Civil Service Authority:
- Ministry of Public work and Transportation:
- Civil Aviation Dept: website will be available in 2010
- National Science and Technology Dept:
(2) Ministry of Planning and Investment (Investment Promotion Department) will continue to publish the updated brochure and investment guidebook, which are including the law and decree on investment in English language at least one a year.
(3) MPI is in consultation with line agencies.
(4)E-Government project is one of the 111 top priorities of Lao government to develop the country in order to become a modern industrial country. With this system the governmental offices will effectively keep all data with rapidity, clear and save. Even though, the E-government will spend a large budget and put more tasks into the concerned sectors to change working style and learn more about modern equipments. However, in the long run for E-Service establishment will save time and expense for the citizen that use the public service such as reduce paper use, reduce the traveling to the service unit and the service procedure will be reduced.
After the government had permitted the implementation in November 2006, the implementation team was immediately begun the project and developed the E-government system to be completed by 2009.
There are 5 main significant tasks under E-Government construction as following:
-Build Local and NationalE-GovernmentServiceCenter
-Set up the E-Government infrastructure to connect with other governmental offices, institutions, private business sectors and citizen.
-Upgrade the programs and facilities for management and information service of offices.
-Provide information technology equipments to the offices to access the E-Government system and modern working style. Computers are generally being installed in the government offices.
-Provide training on information technology to the government officers and the expert on E-Government system service
National Authority of Science and Technology or Information and Technology center have received the grant aid as following countries:
- National E-Government project: 35 million USD
- National Communication Network: 58 million USD
- National Internet Network:20 million USD
- India have donated over 3 million USD including:
- Laboratory Training program
- Information Technology
- Provided over 30 IT Master degree scholarship to study in India
Recently, MoPI is on the process of consulting with National Authority of Science and
Technology, Information Technology institute on creating the official website for the Ministry of
Planning and Investment, investment promotion department.
(5) Ministry of Planning and Investment (Investment Promotion Department): Provided “law on investment, investment guidebook and investment brochure” to the Embassy of Lao PDR in Japan in March 2009 and will continuously provide after the publishing of the revised version.
PROGRESS OF 2010
(1)The progress of websites of ministries:
-Website of Ministry of Foreign Affairs is is under construction.
-The Import-Export Department, Ministry of Industry and Commerce has provided the operational certificate procedure for the rule of origin under Asean, Asean-China and Asean-Korea including the rule of origin for product only under Asean in this website
-Ministry of Energy and Mine (Mine Dept): the Mines Dept has not set up their own website yet because at the moment their work is not directly related to the website, but they plan to set up one in future.
-Ministry of Energy and Mine (Office): These are the websites relates to Ministry of Energy and Mine:
+ Office of Ministry:
+ Electricity Dept:
+ Energy Promotion and Development Dept:
+ Geology and Mine Dept:
+ Entreprise D' Electricite du Laos:
+ LaoHoldingStateEnterprise:
+ Electrical Construction and Installation State Enterprise:
(2)MPI is planning to convert the existing IPD website to become MPI website in 2011. Several government ministries and departments are in progress of setting up their websites.
(3)MPI is publishing the quarterly Investment Magazine in Lao and English. IPD is publishing its quarterly Newsletter in English.
(4)Real situation of on the E-government project is not clear, because there is no further updated progress reportfrom National Authority of Science and Technology (NAST). As far as MPI knows, the E-government project is originally planned by NAST with an assistance provided by China to connect ministries by Wide Area Network (WAN). However, so far, such network has not been observed yet by any ministries. Besides the E-government project executed by NAST, National Authority of Post and Telecommunication (NAPT) has already established the NationalInternetCenter to enable easy access among different internet service providers in Laos.
(5)MPI and IPD are pleased to provide the quarterly Investment Magazines and Newsletters to the Japanese Embassy in Laos as well as the Lao Embassy in Japan.
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)
ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
1.Legal and policy transparency and predictability
1.3 To give prior notice to the public well in advance when laws and regulations as well as measures concerning investment are newly adopted or modified. For the sake of the directly-affected companies in particular, it will be desirable to give them prior explanations individually and then seek their opinions.
→ ACTIONS BY THE LAO SIDE
(1)The GoL will open the public hearings when it takes new laws, decrees, rules and regulations concerning investment. This process is particularly important for drafting the so-called unified investment law. These public hearings are very useful for the companies which will be directly affected by the new measures.
→ PROGRESS OF THE ACTION PLAN BY THE LAO GOVERNMENT
(1)Ministry of Planning and Investment (Investment Promotion Department): During the time of drafting of the new law on investment promotion, MPI did the public consultation in four provinces including Luang Prabang, Savanakhet, Vientiane Capital and Vientiane provinces. In addition, MIP invited related sectors and organizations and embassies to comment on the draft of new law. During the time of drafting the decree of the Prime Minister regarding the implementation of the amended law, MPI also will do the public consultation.
PROGRESS OF 2010
(1)During the drafting process of the decree of the Prime Minister regarding the implementing of the amended law, IPD has been organizing 12 consultation meetings with relevant government departments and agencies.
(2)MPI would like to invite the explanation and public comment hearing meeting of new laws and decrees concerning the economic sector. The Japanese Chamber of Commerce and Industry will be called for invitation to such meetings to be held not only by MPI but also by economic ministries such as MOIC, MOF, and NLMA.
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)
ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
1.Legal and policy transparency and predictability
1.4 To apply these laws and regulations as well as measures concerning investment to the investors in an impartial and fair fashion at all the governmental levels including the implementation one.
→ ACTIONS BY THE LAO SIDE
(1) The GoL will make sure that laws, decrees, rules and regulations will be executed in unity across the country in an impartial and fair fashion for all the investors.
(2) As one of the steps for this purpose, the GoL will continue to conduct the dissemination and training on the work of investment to the central governmental officials as well as the local officials.
→ PROGRESS OF THE ACTION PLAN BY THE LAO GOVERNMENT
(1) The government will continue to try to implement of the laws, decrees and various regulations to be unified across the country and fair for investors;
(2) After the new law is in to force, Ministry of Planning and Investment (in collaboration with IFC) will conduct the dissemination and training on the work of investment to the central government officials as well as the local officials in order to make them understand deeply how to implement the new law.
PROGRESS OF 2010
The PM decree on the implementation of the amended law has still not been approved by the government. The investment promotion department is still finalizing the draft decree. After the completion of the said implementing decree, IPD plans to organize dissemination and training workshops in Vientiane Capital and in several major provinces.
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)
ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
1.Legal and policy transparency and predictability
1.5 To ensure consistency among the laws and regulations concerning investment.
→ ACTIONS BY THE LAO SIDE
(1)The GoL will make further efforts to ensure consistency among international agreements, laws, decrees, rules and regulations by comparing and analyzing them before the adoption of laws, decrees, rules and regulations.
→ PROGRESS OF THE ACTION PLAN BY THE LAO GOVERNMENT
(1) Ministry of Justice (Institute of law research and international cooperation): Consistency among the laws and regulations concerning investment: for drafting laws or revising laws, the party-government’s policy is focusing and considering the importance of coordination with people and all business sectors as a. In the previous action, laws concerning economic such as: law on Investment, resource management, tax-duties and others were all commented from the sub-working groups of the economy.
Article 30 of Presidential Decree No.02 / Lao PDR, dated on 20 October, 2003 on Legal Document Creation in Lao PDR determines that the organizations have the right to propose the draft of law. But the organizations have to collect data, study on the actual status of the politic and social-economic and lessons from internal and overseas to create the law.
Besides the drafting of law, the drafting of Implementation Decree, which is drafted by the concerning sector, has a consultation and brainstorming session with all sectors.
Department of Treaties and International Law, Ministry of Foreign Affair submitted the draft of President’s decree on creation and implementation international agreements to the NA, now waiting for approval and official endorsement.
PROGRESS OF 2010
The Ministry of Foreign Affairs finished the draft of President’s decree on Creation and Implementation International Agreements.After the National Assembly has approved and adopted it, this decree came into force in December 7, 2009. (Department of Treaties and International Law, MoFA)
The Lao-Japan Public and Private Sectors Joint Dialogues : the First Meeting (04/12/2007)
ACTION RECOMMENDATIONS FROM THE JAPANESE SIDE
2. Deregulation
2.1 To clarify and ease the regulations on foreign capitals and amplify the sectors which are 100% open to foreign capitals' participation.
→ ACTIONS BY THE LAO SIDE
(1)The GoLwill enact the unified investment law which is to clarify and ease the regulations on foreign capitals by the end of 2009. Unify the Domestic Investment Law and Foreign Investment Law including 9 significant issues as following:
1)Unify the Domestic Investment Law and Foreign Investment Law which clarifies the equality between Lao investors and Foreigners Investors. The government policy indentifies huge significant on attracting foreigner investors as well as for some sectors that do not recognize.