news-and-events

On 6th October 2015, the Laos Investment Seminar was organized in Tokyo, Japan by Ministry of Planning and Investment of Lao PDR and ASEAN Japan Centre. This event attracted about 250 Japanese investors.

On the remarks of H.E. Mr. Somdy Douangdy, Minister of Planning and Investment, keynote speaker of the seminar, Minister Somdy said that the seminar is among the activities to celebrate the 60th Anniversary of Laos and Japan Diplomatic Relation. 

The speech covered the 5 year Social and Economic Development Plan 2016-2020 and key targets that are needed. One of key elements is the contribution of the domestic and foreign investments. Thus, the investment environment improvement and investment liberalization are significant to attract Japanese Investors to Laos and contribute to the development of the Lao PDR and embrace with the mutual benefits of both sides. The liberalizing the service sector is one of the top priority of the Lao Government agenda, the equity participation of the foreign investors is up to 100% for the wholesales/retails business and 70% for the tourism business. 

Minister Somdy and Ambassador Khenthong Nuanthasing, Lao Ambassador to Japan, expressed the common point that the special economic zone would play crucial role in attracting the Japanese investments. There are over 10 SEZs located in strategic locations around the country. 

Three speakers from SEZ of Laos shared vivid information of their SEZs and how the Japanese investments would take the opportunities and benefits from investing in the zones.

Savan Park is located in Savannakhet Province (central part of Lao PDR) which takes full advantage of the East-West Economic Corridor. This SEZ covers the total land area of 234 Hectare and 42 enterprises registered in the zone.   

Pakxe-Japan SME Specific Economic Zone is located in Champasack province (southern part of Lao PDR). This SEZ is divided to three zones covering about 205.5 Hectare of totally land area. This new SEZ established in August 2015 and welcomed 6 enterprises.

Thakhek Special Economic Zone is located in Khammouane Province (central part of Lao PDR). It is few minutes from the 3rd Mekong Friendship Bridge between Laos and Thailand. This SEZ has about 1244 Hectare for the future development.

SEZs in Lao PDR features several incentives which are considered having several competitive incentives.

(Seminars' honorary guests,Mr. Daisuke Hiratsuka, Executive Vice President of JETRO; Dr. Bounthavy Sisouphanthong, Vice Minister of Planning and Investment; Professor Yasuhiro Yamada, Special Assistant to the President of ERIA on CLMV issues (from left to right))

On September 30, 2015, the Policy Recommendation Seminar to Government of Lao PDR “Enhancing Industry in Lao PDR: Services Liberalization, Simplification of Investment of Investment Procedures and Human Resource Development” was organized by JETRO, IDE-JETRO, ERIA and Ministry of Planning and Investment. This event welcomed about 100 guests from the Japanese Embassy, Ministries concerned and local University

On the remarks of Dr. Bounthavy Sisouphanthong, honorary guest of the seminar, it covered the 5 year Social and Economic Development Plan 2016-2020 and key targets that are needed. One of key elements is the contribution of the domestic and foreign investments. Thus, the Vice Minister was strongly encourage JETRO, IDE-JETRO and ERIA support the liberalization and improve the business environment. Thus, it would attract Japanese Investors and contribute to the development of the Lao PDR and embrace with the mutual benefits of both sides.

(The Group Photo Session attended by VIP guests from Ministry of Planning and Investment, JETRO, IDE-JETRO, ERIA and representatives from line ministries.)

This seminar is realized with further request by H.E. Mr. Thongsing Thammavong, Prime Minister of Lao PDR to Mr. Hiroyuki Ishige, President of JETRO, to break down the policy recommendations into more practical and pragmatic policies and to have a seminar for government officials of Lao PDR. Dialogue between the government officials of Lao PDR and JETRO/IDE-JETRO staffs was also hold in this seminar. The organizers shared the common expectation that the seminar would create realistic policy views, and help Lao PDR to graduate from the least developed countries in 2020.

The forum’s Chairperson, Dr. Bounthavy Sisouphanthong, Vice Minister of Planning and Investment

On September 19, 2015, the 12th Lao-China Business and Investment Forum was organized by China ASEAN Secretariat and Department of Commerce of Guangxi Zhuang; and sponsors by Ministry of Planning and Investment and Ministry of Industry and Commerce of Lao PDR. This event could attract over 200 Chinese potential investors from various sectors such as logistics, service, agriculture and health care.

On the opening remarks of Dr. Bounthavy Sisouphanthong, chairperson of the forum , it covered the 5 year Social and Economic Development Plan 2016-2020 and key targets that are needed. One of key elements is the contribution of the domestic and foreign investments. Thus, the Vice Minister was strongly encourage the Chinese Investors to seek the investment opportunities and contribute to the development of the Lao PDR and embrace with the mutual benefits of both sides.

The 12th Lao-China Business and Investment Forum was organized back to back with the 12th China-ASEAN EXPO or known as the CAEXPO.

On the same day of that forum, the 12th CAEXPO Round Table Meeting on Investment Cooperation was hold. The representatives from the investment promotion agencies from ASEAN and China shared their common goals to facilitate the trade and investment under the theme of maritime time cooperation. 

Ms Sengdeune Sayasone (second from right), Head of Investment Promotion Division, Investment Promotion Department, Ministry of Planning and Investment

Ms. Sengdeune Sayasone, the preventative from Lao PDR emphasized 3 key areas of future cooperation among China and ASEAN member states.

- International Capacity Cooperation: there is a clear need for advance capacity that Laos needs in short-term and long-term. As for the short term, the government welcomes the expertise and transfer know-how in potential industries such energy, manufacturing, agriculture, education, healthcare and service. As for long-term, the government focuses on the human resource development. 

- Logistics Parks: Lao government aims to transform Laos from the land-locked to become the lank-link country. Given that strategic location, we have linked our land with other neighboring countries various means such as building the bridge to connect Laos with Thailand and Myanmar; several bridges across the country; road upgrading to regional standard; opening new international checkpoints for goods and people; railway development plan; and open the direct flights to major Asian cities. Apart from that, we have a clear policy to develop the logistics parks. The Boten Logistics Parks will be one of the leading parks in northern part of Laos to facilitate the moving of goods across ASEAN and China. In Vientiane Capital, we also have a plan to develop another logistics Parks close to the Mekong Bridge.

- Sectors, industrial Cooperation Fields and Projects: the Lao government would like to 13th CAEXPO support the infrastructure development aiming to enable the land link initiative and facilitating the investment and trade. One of the key project is the railway development project connecting Kunming to Vientiane Capital city. We strongly believe the development of this railway would enhance the construction of the Silk Road Economic Belt and the 21st Century Maritime Silk Road which would integrate the ASEAN and China in higher level.

On June 11, 2015, the Workshop on the Final Consultation on Public-Private Partnership (PPP) Draft Decree with Public and Civil Society Sectors was organized by Ministry of Planning and Investment and supported by the Asian Development Bank.

Mr. Manothong Vongsay, chairperson of the workshop went over objectives of the event and background of the draft of PPP Decree. The key objective is to welcome constructive comments from the concerned ministries and the civil society sector aiming to ensure the PPP Decree contains all necessary information. The chairperson also encourage the participants to express their thoughts in order to ensure effectiveness of managing the future PPP projects and bringing the benefits to all concerned parties.

The draft of PPP decree has been over several consultations and been revised 6 times. The several revisions were made in corresponding to comments/suggestions from wide range communities, for instance the concerned government agencies, private sector and as well as the international organizations. The most recent revision was brought the comments from IFC into the draft. The comments from JICA will be considered and put into the draft. 

This final consultation workshop attracted several comments from both public, civil society and private sectors. It covered several aspects such as the definition, volume, mechanism, interpretation, scope, wording, roles, scale of the projects, etc.

The new revision of the PPP Decree will be made in according to those comments. Then, it will be submitted to Ministry of Justice and Government Office for further consideration and approval. 

A public–private partnership from the open source site said it is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP, P3 or P3.

PPP involves a contract between a public sector authority and a private party, in which the private party provides a public service or project and assumes substantial financial, technical and operational risk in the project. In some types of PPP, the cost of using the service is borne exclusively by the users of the service and not by the taxpayer.[1] In other types (notably the private finance initiative), capital investment is made by the private sector on the basis of a contract with government to provide agreed services and the cost of providing the service is borne wholly or in part by the government. Government contributions to a PPP may also be in kind (notably the transfer of existing assets). In projects that are aimed at creating public goods like in the infrastructure sector, the government may provide a capital subsidy in the form of a one-time grant, so as to make it more attractive to the private investors. In some other cases, the government may support the project by providing revenue subsidies, including tax breaks or by removing guaranteed annual revenues for a fixed time period.

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Last update: 10 November 2016.