Month: May 2022

Banning general public members from owning foreign currencies may be an option for the government to address money-related problems including kip depreciation and rising inflation, according to the Governor of the Bank of the Lao PDR (BoL).

“Our advisers from neigbouring countries China and Vietnam have said that they faced similar situation like us 20 years ago. Then, they unanimously decided that no general public members could be allowed to own foreign currencies. Only local currencies could be deposited in the bank and only import and export businesses could open bank accounts in foreign currencies,” said BoL Governor Sonexay Sithaphaxay on May 27.

“For many years our society has been accustomed to using many foreign currencies. So it is not easy to introduce this method.” Mr Sonexay also said that there need to be a meeting with the participation of a number of stakeholders to decide whether the prohibition of general public ownership of foreign currencies is possible.

The government is about to issue bonds with high interest rates to reduce the volume of cash in circulation next month. Meanwhile, BoL has pledged to work with the public security to take stricter actions against businesses illegally exploiting benefits from trading foreign currencies.

Illegal exchange businesses have limited the inflow of foreign currencies through the banking system and this weakens banks’ capability of providing foreign currencies, according to Mr Sonexay.

BoL is also preparing to submit revised draft amendments to the law on foreign currency management to the coming ordinary session of the National Assembly.

In the third quarter of 2021, BoL suspended the issuance of business license for exchange shops. The nationwide number of currency exchange shops was reduced from 550 to currently 416. More exchange shops are expected to have business license revoked over months to come.

In the first four months of 2022 which witnessed prevailing Covid-19 pandemic and worsening Ukraine situation, the national currency Kip depreciated 18% against US dollars and 9.4% against Thai baht as compared to the same period last year.

Meanwhile, the US dollar appreciated 8.18% against Euro, the highest appreciation in two years. Oil price rose by 65% year on year.

“In pre-Covid-19 years, Laos imported 600-800 million US dollars in oil per year. Today, the rising oil prices make us pay 1-1.2 billion US dollars per year for oil,” said BoL Governor.

Mr Sonexay also attributed the sharp depreciation of the kip to the imbalance between the inflow and outflow of foreign currencies through the banking system.

Of the total export values, only 30% were traded through the bank. Meanwhile, up to 98% of the import values were settled through bank accounts.

“Although we record almost 600 million of trade surplus, almost 50% higher than the same period last year, only 33% (US$3.2 billion) of the export payments have been paid through the bank,” said BoL Governor.

Electricity, the number one export product of the Lao PDR, has witnessed only US$350 million, 14% of its export value (US$ 2.6 billion) paid through the bank.

“Most electricity payments were made outside the Lao PDR. Some have rational reasons for doing so but we need to establish certain duration when payment should be made overseas and when not. We could just allow them to do so before they reach the break-even point, especially for concessional projects, after that the payment must be made domestically,” said Mr Sonexay Sitphaxay.

Source: Lao News Agency

Almost one third of people in the Lao PDR are aged between 10 and 24 years old, making it one of the youngest populations in Southeast Asia.

As this number is only set to increase over the next ten years, the Lao PDR has a once-in-a-generation opportunity to benefit from this demographic dividend entering the workforce. Currently, 39% of the youth population are not in education, employment, or training, which is the highest in the region.

Within this context, the United Nations Development Programme (UNDP) and the Ministry of Planning and Investment (MPI) are together preparing the 6th Human Development Report for the Lao PDR, focusing on ‘Youth as Drivers for Sustainable Development’. To explore the opportunities and challenges, UNDP and MPI held a multi-stakeholder consultation on May 27 at the Landmark Hotel.

Co-chaired by Vice Minister of Planning and Investment Sathabandith Inisiengmai, and UNDP Resident Representative Ricarda Rieger, the consultation aimed to receive feedback from key stakeholders on priority areas for youth development.

There was a highly engaging discussion with diverse representatives from Government, persons with disabilities, LGBTQI+, youth groups, youth entrepreneurs and civil society organisations both in person and virtually.

Following the presentation of report chapters by UNDP and plenary discussions, feedback was provided by leading youth groups, including the Huam Jai Association, Zero Waste Laos and the Association for the Deaf. The draft report was validated by participants, who provided critical feedback on the relevance and accuracy of the preliminary findings, which UNDP will further incorporate into the final NHDR.

“The government recognizes that the promotion and development of youth is critical to improving human capital and increasing workforce participation, as indicated, and prioritized in the 9th Five Year Socio-Economic Plan. It is our priority to develop the skills of our youth, improve job access and increase youth capacity to participate in local and socio-economic development in the Lao PDR,” said Vice-Minister of Planning and Investment Sathabandith Inisiengmai.

Resident Representative of UNDP to the Lao PDR Ricarda Rieger appraised the extensive participation from the stakeholders and youth representatives. “The feedback received today, to be incorporated into National Human Development Report, will not only complement the current national plans and strategies, but provide key recommendations for advancing youth participation in the Lao PDR and prioritizing youth as agents of change.”

The interlinkages between youth development and national growth trajectory cannot be understated, this is particularly pertinent considering the compounding socio-economic impacts the Lao PDR is currently experiencing. Investment in youth development, in conjunction with increasing youth participation in decision making, will be vital for human development and be a potential factor to helping the Lao PDR smoothly graduate from the Least Developed Country (LDC) Status by 2026.

The NHDR seeks to examine the state of youth to assess their human development potential, needs and challenges. To date, UNDP have surveyed almost 7,000 young people across priority provinces and conducted extensive focus group discussions and interviews with youth from a diverse range of backgrounds.

This data and lived experiences of youth collected will enable a better understanding of the barriers youth face and identify the potential strategies and actions to overcome these barriers.

The NHDR aims to foster greater participation of young people in decision-making processes across all sectors, which will be critical to capitalizing on this once in a generation opportunity and contributing to the sustainable development of the Lao PDR.

The NHDR will be launched later this year and will provide key recommendations to ensure that Lao youth not only benefit from Government policies but have the opportunity to lead empowered lives and drive sustainable development for the country.

Source: Lao News Agency

The Food and Agriculture Organization of the United Nations (FAO) in collaboration with the National Agriculture and Forestry Research Institute (NAFRI) opened on May 30 a four-day agriculture innovation fair that will also include a series of panel discussions and presentations.

With agricultural innovation having huge potential in the Lao PDR to increase farmers’ incomes, improve food and nutrition security and allow for sustainable management of natural resources, the aim of the event is to provide a platform to highlight and exchange ideas and facilitate partnership between investors and policy makers.

More than 50 agriculture producers from throughout Laos have been invited to display and sell their agriculture products at the market fair.

Scheduled for May 30-Jun 2, the market fair constitutes a valuable opportunity to bring farmers’ groups and associations, smallholder farmers and agri-entrepreneurs closer to consumers.

The fair will have booths where agricultural innovations, products and services can be showcased and allow for discussion around potential collaborations and the public is welcome to attend.

The fair will also host a series of presentations and panel discussions with a focus to be placed on research and development in agriculture innovation and capacity development.

The first discussion includes panelists representing a number of government departments, the private sector and farmers’ organizations to share views and discuss ways to improve agricultural innovation in the Lao PDR.

The second presentation aims to provide young farmers, researchers, students and entrepreneurs an opportunity to outline their stories and challenges in agricultural innovation to policymakers. A student debate and contest on ‘Our vision for agricultural innovation’ is also a highlight of this activity.

NAFRI will also chair a seminar presenting research reports on agriculture, forestry and rural development.

Source: Lao News Agency

The Archbishop of Canterbury said Monday he would miss a national service of thanksgiving for Queen Elizabeth II’s Platinum Jubilee after testing positive for COVID.

Justin Welby, who leads the worldwide Anglican communion, said he was “deeply saddened” at missing Friday’s service in St Paul’s Cathedral, central London.

He was diagnosed with mild pneumonia on Thursday and developed coronavirus symptoms over the weekend, and has cancelled all engagements this week.

“However, I will be praying for the queen and giving thanks for her extraordinary 70 years of service to us all,” the archbishop said.

“I will also be praying for our nation at this time of celebration and thanksgiving. May the queen’s example bring us together in unity and care for one another.”

The Church of England’s second-highest ranking cleric, Archbishop of York Stephen Cottrell, will deliver the sermon instead.

Buckingham Palace has yet to confirm if the 96-year-old monarch will attend the Anglican service herself.

She has restricted her public engagements in recent months after complaining of mobility problems. She contracted COVID-19 in February.

Two figures set to attend on Friday are Prince Harry and his wife Meghan, according to their biographer Omid Scobie.

The Duke and Duchess of Sussex stepped down from royal duties and moved to North America early in 2021. They have visited the UK together only once, after a series of disputes with the royal family.

Source: Voice of America

A Beijing man has landed thousands of his neighbors in quarantine after he ignored an order to stay at home and later tested positive for COVID-19, prompting a police investigation.

The Chinese capital has ordered hundreds of thousands of residents to stay home over the past five weeks to curb its largest coronavirus outbreak since the start of the pandemic.

Officials said Sunday that a man in his 40s surnamed Sun had failed to follow a requirement to isolate that he was given after visiting a shopping center considered high risk.

“During the home isolation period he … went out many times and walked in the neighborhood,” said Beijing public security official Pan Xuhong.

Sun and his wife later tested positive, prompting authorities to lock down 5,000 of their neighbors at home and send 250 to a government quarantine center.

It came as virus restrictions started easing in Beijing on Monday, with authorities reopening parks, museums and cinemas and declaring the outbreak under control.

China is wedded to a zero-COVID strategy of hard lockdowns, mass testing and long quarantine periods to wipe out clusters as they emerge.

There are tough penalties for breaking the rules, and Sun is now under police investigation.

Beijing’s omicron-fueled cluster has seen more than 1,700 infections since late April — a tiny number by global standards but troubling for China’s rigid approach to the virus.

Case numbers have dropped sharply in the past week.

“There have been no new cases found in society (outside quarantine centers) for two days,” Xu Hejian, a spokesman for the Beijing government, said Sunday. “The situation is stable and improving … but the risk of a rebound still exists.”

Most bus, subway and taxi services in three of the capital’s most populous districts were running again Monday, and millions were told to return to work.

A handful of tai chi practitioners and locals were enjoying balmy weather in a reopened downtown park.

“I think people are waiting to see whether there will be new cases before coming out in large numbers,” said Zhi Ruo, a government employee who had brought his 5-year-old child out to play.

Shanghai

China’s commercial hub of Shanghai also announced the lifting of more restrictions on Monday, nearly two months after economic activity ground to a halt in a hefty citywide lockdown.

The number of people kept at home has been gradually decreasing, and the municipal government said it would “not restrict the access of residents or villagers into and out of their communities for any reason” from June 1 — except in communities classified as high-risk or controlled areas.

Some 900,000 people across thousands of communities in the city are still in these brackets, according to the state-run China National Radio.

Public transport will also “resume basic operation” from Wednesday, authorities said, adding that taxis would be able to operate normally.

Private cars will be allowed to take to the road again in Shanghai — except for controlled areas — but will still not be allowed to leave or enter the city.

Shops remain closed, as well as most schools.

The city has been gradually easing restrictions over recent weeks, including allowing more residents out for a few hours at a time.

But some have complained of discrepancies between official announcements and relaxed rules being enforced on the ground.

Vice Mayor Wu Qing told reporters Sunday that the city would “eliminate unreasonable restrictions … and abandon the approval system for work and production by enterprises.”

Wu announced a slew of measures to shore up Shanghai’s virus-battered economy, including cutting property taxes, subsidizing gas and electricity for businesses, and ordering banks to lend more to small- and medium-size enterprises.

The city reported 66 infections Monday, while Beijing reported 12.

Source: Voice of America