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Govt consults businesses to amend Law on State Assets
The government will amend the Law on State Assets, making it easier for the authorities to use their property for business operation purposes.
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| Ms Viengthong Siphandone. |
The Ministry of Finance yesterday held a meeting with company managers to debate a draft amendment to the law at the International Cooperation and Training Centre in Vientiane before submitting it to the cabinet and National Assembly for approval.
According to Article 21 of the draft, the government would find it easier to transfer its state assets to state enterprises so they can use them for business operation purposes. Asset transfers must not have a negative impact on state administration.
The amended law also aims t o allow the government to transfer state assets to individuals, legal entities and non-governmental organisations.
Speaking at the opening of the meeting, Deputy Minister of Finance Ms Viengthong Siphandone said the amendment was one of the ministry's most urgent undertakings, and would enable the government to manage the use of state property effectively and transparently.
The amendment was also necessary due to the change in the socio-economic development climate and to comply with other laws, which was necessary to build Laos as a state governed by the rule of law, she told meeting participants.
Ms Viengthong said state assets, which include, minerals, forests, land, factories and buildings, are very valuable. If used effectively, they can boost GDP growth and accelerate socio-economic development.
She urged meeting participants to pay attention to the presentation on the draft amendment and to provide comments for law drafters to take into account so they could improve the law, so it would be easier for the authorities to enforce.
The amended law comprises 75 articles of which 43 are additions. It covers principles and frameworks on management and the use of state assets, international cooperation, state asset value estimation, registration of state assets, the receipt and transfer of state assets, and relocation of state assets.
The amended law also defines principles relating to income collection from the use of state assets and defines the rights of the central and local authorities to collect any income derived from the use of state assets.
The amendments will make it easier for the government to list state-owned enterprises on the stock market, which will mobilise public investment for use in development. Many state enterprise managers currently have problems selling state assets to investors because there are no detailed instructions on how this should be done.
The government has sold 30 percent of its shares in EDL-Generation and BCEL to local and domestic investors as part of efforts to mobilise public funding. The sale raised more than US$100 million for use in the development of state investment projects.
vientiane times
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