Despite government policy to motivate private sector growth, Lao businesses are still hampered by unnecessary fees and red tape.
These barriers to trade have an impact on goods traffic and limit the expansion of trade services and the competitive capacity of domestic business.
Speaking at the National Assembly (NA) last Friday in Vientiane, Minister of Industry and Commerce Dr Nam Vinhakhet said that for trade to grow more quickly in Laos all obstacles must be removed, starting at village level.
Addressing the unreasonable fee system, Dr Nam commented that producers first have to pay the village authorities and the sectors involved to be able to manufacture their product, then pay district authorities for the privilege of transporting goods before they can be sold.
He raised the question of how businesses can survive if this situation continues, and urged the government sector responsible to abolish all trade barriers to enable businesses to develop.
The government and prime minister have already issued announcements requiring changes in checkpoint procedures and regulations, with the aim of removing unnecessary procedures. But many sectors have been slow to follow the reforms.
“If we work like this it is not an open economy. We should seek ways to ease business operation,” said Dr Nam.
In future the ministry will phase out issuing goods monitoring documents to businesses as the practice is seen as outmoded.
The documents only create difficulties for companies that want to export goods, who have to first ask permission from the relevant department or ministry.
Dr Nam told the NA that companies no longer need apply for the documents, but the ministry urges manufacturers to have the proper goods certificate, brand name and trademark to certify their own products.
It is believed this system will make it easier for businesses to export their products and help break down the complexities they have faced in the past.
Dr Nam has quoted Late President Kaysone Phomvihane who said commercial production needed to open up independent goods traffic throughout the country, and led the implementation of this policy in 1992 by abolishing all trade barriers and inspections to ensure free movement of goods.
But the business sector continues to confront obstacles, which need to be removed if real sustainable private sector growth is to be achieved.
By Times Reporters
(Latest Update June 22, 2010)
Author
Topic: Trade barriers delay private sector expansion (Read 190 times)
