Category: Business

No progress has been reported for the development of sections 2 and 3 of the Northern Highway construction project (Vang Vieng to Luang Prabang, Luang Prabang to Udomxay, and Udomxay to Laos-China border (BoTen-BoHan)).

Although its construction has been surveyed and studied for many years, the highway project has not progressed and there are still many outstanding tasks.

The Ministry of Planning and Investment of the Lao PDR has reviewed a Chinese company’s request to continue studying the feasibility of the highway ranges.

Yunnan Construction and Investment Holding Group has already renewed a Memorandum of Understanding (MOU) with the ministry three times, but the project has not progressed and there are still many outstanding tasks.

Realizing that is necessary to choose a company that is ready in various aspects to continue the development of section 2 – Vang Vieng to Luang Prabang and section 3 – Luang Prabang to Udomxay to complete the infrastructure project as soon as possible, the Prime Minister’s Office issued on March 30, 2022 Notice No. 431 denying the company’s additional request for MoU renewal, canceling section 2 (Vang Vieng to Luang Prabang) and section 3 (Luang Prabang to Udomxay) of the highway project.

The office states in its notice that Yunnan Construction and Investment Holding Group can continue to develop section 4 of the highway (from Udomxay to the Laos-China border (BoTent-BoHan)) because the company has already conducted a feasibility study on the state of the highway and has some data, but the time frame for the implementation of the project must be clearly defined.

Source: Lao News Agency

A market event, held on the sidelines of Prathat Prabat Phonsan Festival, has drawn 247 producers and service providers. The fair was opened on Tuesday at sacred Prabat Phonsan Temple, Borikhamxay Province.
The opening ceremony was attended by Borikhamxay Governor Kongkeo Xaysongkham, Governor of Thaprabat District Somsot Seng-aphone, Director of the Borikhamxay Provincial Department of Industry and Commerce Kaysone Chansyna and other provincial leaders.
“This event aims to promote the protection of the fine culture and traditions of the nation and the province and to strengthen understanding, solidarity and friendship among people in the district,” said Thaprabath District’s Vice Governor Kone Luangphithak. “The event also aims to give direct and indirect impetus to local economy, especially the businesses in the tourism sector, promote natural, historical and cultural tourist attractions in Thaprabath District so that they can attract more visitors.”
Exhibited and sold at the market fair included One District One Products (ODOPs), products of model families, handicrafts, agricultural products, textiles and tourism products.
An alms giving ceremony will be also held on the sidelines of the event on Jan 6, 2023, the last day of the annual festival.

Source: Lao News Agency

At the ongoing 4th Ordinary Session of the National Assembly, people representatives have urged the government to ensure the country’s economy grows by at least 4.5% and per capita incomes and GNI are increased.
Members of the National Assembly have noted that it is obvious that several sectors and provinces have potentials and are likely to collect enough revenues that can ensure they have budget sufficiency and exceed revenue collection plans.
Giving an interview to the media on Wednesday, Vice President of the National Assembly Sommad Pholsena said that the government has been urged to make efforts in mobilizing financial resources through promoting domestic and foreign investment, ODAs, stock market development, and making use of existing funds to achieve targets of its National Socio-economic Development Plan.
It has been asked to attach greater attention to promoting domestic and foreign investment in special and specific economic zones by taking into account lessons learned in neighbouring countries and other friendly countries.
The National Assembly has urged strict management of state investment projects, and proper consideration of measures that can help better tap domestic potentials including the Laos-China railway, dry ports, special economic zones and other economic sectors to promote the country’s connectivity.
People’s representatives have called on the government to promote domestic production to reduce imports, help local businesses access carbon funds, accelerate devising land use strategic plans of each sector and province, and pay adequate attention to basic infrastructure development in the education sector.
They have called on the government to reallocate civil servant quotas, devise an incentive policy for volunteer teachers and volunteer health workers, especially those working in remote areas, and provide educational equipment and textbooks to all schools across the country, address school dropout problems and encourage secondary school graduates to pursue education at tertiary, vocational and university levels as well as address malnutrition problems among children, and improve the health insurance system.
NA has also urged the government to continue to reform state enterprises, attach attention to evaluating and implementing priority projects of rural development and poverty reduction in target districts, promote rule of law and address social shortcomings in a strict, transparent and professional fashion, take decisive actions against the budget units that violate planning and investment regulations, and attach importance to the implementation of the three-build directive along with the patriotism and development movement and urge local administrations to be more active in developing their localities.
The National Assembly has also asked the government to pay attention to implementing the national agenda on addressing economic and financial difficulties as a priority of the National Socio-economic Development Plan and make sure a significant progress is made to ensure the country will not fall into an economic recession, and come up with measures that can mobilize funding in a certain, stable, sustainable manner especially from domestic partners to cut public debts to less than 64.5% of GDP and foreign debts to less than 55.4% of GDP.
NA has also noted that it is necessary for the government to strengthen revenue collection in the tourism sector and make the best use of Laos-China railway, establish local production and goods zones in each province and ensure their processing is diverse and low interest loans are accessible to reduce costs of local producers and increase the competitiveness of local products against imported ones.
The government has been asked to attach attention to improving land tax collection by using an integrated banking system, increasing effectiveness of state spending management, and evaluating the provision of loans to small and medium enterprises, young entrepreuners and producers including the 300-billion-kip package for SMEs and the Bank of the Lao PDR’s 1.8 trillion kip loan to relieve Covid-19 impacts.

Source: Lao News Agency

On Dec 23 at the ongoing 4th Ordinary Session of the National Assembly, President of the State Inspection Authority Khamphanh Phommathat answered questions raised by members of the National Assembly about tax exemption for fuel imports, the reform of commercial banks and state enterprises and other issues of national interest.
On Dec 23 at the ongoing 4th Ordinary Session of the National Assembly, President of the State Inspection Authority Khamphanh Phommathat answered questions raised by members of the National Assembly about tax exemption for fuel imports, the reform of commercial banks and state enterprises and other issues of national interest.

As for the reform of commercial banks and state enterprises, the State Inspection Authority is working with relevant authorities including the National Assembly commissions and relevant ministries to find a consensus on how to address document problems in the near future.

“We have discussed with the President of the National Assembly and we have found that there are a lot of problems we need to address together,” said Mr. Khamphanh.

A report by the President of the State Inspection Authority identified difficulties including slow provision of information and materials by relevant sectors. It pointed out that the documents are ambiguous and incomplete as they fail to state a specific timeframe for tax exemption.

“In the near future, the State Inspection Authority will continue to work with the Commission on Planning and Finance of the National Assembly and the State Audit Organisation to seek a common solution on the document issues,” said Mr Khamphanh.

“The authority has inspected 38 projects worth over 318 billion kip. These projects have been found to be effective and necessary for the basic infrastructural development in rural areas and the improvement of people’s livelihood but no debts of these projects have been paid as they are unapproved projects and their owners are unable to pay the debts. Therefore we have asked the National Assembly whether the government needs to list these projects as approved projects or not,” said SIA President.

He attributed the slow progress in project inspection to chronic lack of necessary human resources and financial support.

With cooperation from relevant ministries, organizations and authorities, the State Inspection Authority has inspected 616 projects, each valued at less than 10 billion kip.

Source: LAO News Agency

Russian oil exports will grow by 7.5% to 242 mln metric tonnes in 2022, Russian Deputy Prime Minister Alexander Novak said in an interview with TASS.
(KPL /TASS) Russian oil exports will grow by 7.5% to 242 mln metric tonnes in 2022, Russian Deputy Prime Minister Alexander Novak said in an interview with TASS.

“According to preliminary data from the Energy Ministry, despite the pressure that the industry is facing, we will increase oil output by 2% this year compared to 2021, to 535 mln metric tonnes. Oil exports will grow by 7.5% to 242 mln metric tonnes,” Novak said.

According to him, primary oil refining will drop by 2.9% to 272 mln metric tonnes. “However, motor gasoline production will rise by 4.2% to 42.5 mln metric tonnes and diesel fuel output will grow by 5.9% to 85 mln metric tonnes. That said, we will have more high-quality products even despite a decline in oil refining,” the deputy prime minister noted.

Novak stated earlier that Russian oil exports continued steadily as companies had reconsidered logistics schemes and made agreements on payments. The deputy prime minister added that Russian exports were being redirected to the Asia-Pacific region, Africa and Latin America.

Source: LAO News Agency

On Thursday, Dec 22, Deputy Governor of Viengphoukha district, Luang Namtha Province, Phoumone Khounsiliheuang, and Ambassador of India to Laos Dinkar Asthana attended a groundbreaking ceremony of a project aiming to increase organic coffee production and diversify local economy.
Capacity building of villagers of Namvang, Viengphouka district, Luang Namtha Province is also part of the project.
Representatives of Luang Namtha provincial authorities were also present. The project is being undertaken under grant assistance from the Government of India under the Quick Impact Project (QIP) Scheme of Mekong-Ganga Cooperation (MGC).
The project aims to create sustainable alternatives for shifting cultivation (slash & burn) and mono-cropping which are common agriculture practices of the communities in the uplands of Luang Namtha Province.
The project will enhance the quality of coffee production and also diversify the village economy through the planting of various fruits and nut trees to serve as shade trees for the coffee in the fields.
Speaking at the occasion, the Ambassador noted that this project will bring happiness and economic prosperity to the villagers.
He hoped that the project would be completed quickly and quick completion of the project will further strengthen the existing excellent bilateral cooperation between India and Laos.
India has taken up many Quick Impact Projects in Laos in the areas of health, education, drinking water facility, agriculture, etc. in remote far-flung areas across many provinces of the country.
Out of these, some projects have been completed and remaining projects are at an advanced stage of implementation. The projects reach out to and benefit the grassroots.
Deputy Governor of Viengphoukha District Phoumone Khounsiliheuang appreciated in his remarks the grant assistance from India for the implementation of the project in the agriculture sector which is an important sector for socioeconomic development of the Lao PDR and mentioned that about 35 families will benefit directly from the project.

Source: Lao News Agency