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Govt lifts domestic trade barriers in bid to boost production
Trade between provinces will soon be easier now that authorities have eased restrictions on the flow of goods around the country.
The Ministry of Industry and Commerce last week ordered provincial authorities nationwide to end the practice of issuing permits for traders to move goods from production bases to markets, as part of efforts to facilitate the free flow of goods across the country.
“From now on, provincial industry and commerce departments are banned from issuing permits for traders to transport goods within the country.
This aims to reduce the cost of business operations,” Deputy Minister of Industry and Commerce Mr Siaosavat Savengsuksa said at the recent annual conference of the industry and commerce sector.
Deputy Prime Minister Somsavat Lengsavad presided over the conference and provided guidance for industry and commerce officials as they strive to put the Resolution of the 9th Party Congress into practice
The three-day conference aimed to address barriers to trade in Laos in accordance with the four breakthrough approaches, a key feature of the Resolution. These approaches aim to eliminate administrative procedures that do not help to boost production.
In the past, some provincial authorities have been known to issue fines and confiscate goods, particularly rice, from traders who did not have official permission to transport goods from one province to another.
They believed that the outflow of important products such as rice would threaten food security in their province and therefore tried to restrict their sale to other provinces .
Mr Siaosavat said the abolishment of restrictions on the flow of goods between provinces would encourage more people to produce goods for sale, adding that the government plans to increase the number of small and medium businesses as they are a driving force of the economy.
He also said that elimination of interprovincial trade barriers would enable producers to sell goods at more competitive prices.
Unnamed policy makers say that if Laos is to become a World Trade Organisation member, it must open up to foreign investors and abolish domestic trade restrictions.
They also say the government believes the free flow of goods would allow businesses to develop.
This would not only create jobs, but also provide larger sources of revenue for the government.
Policymakers said a freer flow of the goods would not threaten food stability in the provinces but rather boost production as increased trade opportunities become available. Ensuring that supply and demand are balanced is vital to food security, they noted.
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