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Breakthrough approaches aim to bolster investment
Private investment in Laos will get a major boost with the implementation of four newly approved "breakthrough" measures, according to a senior official from the Ministry of Planning and Investment.
Investment Promotion Department Deputy Director General, Mr Manothong Vongsay, told the Laos-China Business Forum in Vientiane last week the breakthrough measures will boost investment and development in Laos.
The ruling Lao People's Revolutionary Party approved the new measures at its 9th Congress in March, believing this approach will boost development amid rising pressure to free the economy from dependency on the resource sector.
One of the measures focuses on a change in attitude. This aims to do away with old stereotypes, complacency and political extremism, and instead to provide training so that a skilled workforce is available to meet the need for a knowledge-based economy.
The remaining breakthrough approaches set out to simplify administrative procedures and management to facilitate foreign investment, create more job opportunities, and to reduce poverty, which is prevalent in about 20 percent of households.
Mr. Manothong said the government had already put some of the breakthrough measures into practice. The newly amended Investment Promotion Law will provide a single window system, through which officials from all sectors concerned will coordinate to discuss and approve investment proposals.
Investors who wish to engage in a business that is not on the controlled list will get a license within 10 days, while those who want to run a business that is controlled will get a license within 13 days, Mr. Manothong said.
In the past, business operators had to meet with officials from different ministries to get an investment proposal approved. This meant they had to spend a lot of money and time to obtain investment permission, even though their project was intended to boost economic growth and social development in Laos.
However, the situation is different for those needing a concession for their project, as this will involve more processes. In such cases, an investor will have to put forward a certain amount as a guarantee, Mr Manothong said. The Investment Promotion Law includes various incentives such as tax breaks for projects located in remote areas, as the government wants to encourage development in rural locations.
The law also grants additional incentives to those who want to invest in health and education. These include land lease and concession exemptions of from 3 to 15 years depending on whether the proposed project is in an urban or rural area.
The law also enables investors to own land for the purposes of building an office or residence, or investment in real estate. The law also encourages local and foreign businesses to invest in special and specific economic zones, some of which are located in former revolutionary strongholds.
kpl laos news agency
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