Lao Business Forum Lao Business Forum

Public-Private Dialogue WorkshopPublic-Private Dialogue Workshop Paris, 1-2 February 2006Paris, 1-2 February 2006

MEKONG PRIVATE SECTOR DEVELOPMENT FACILITY

Overview – Lao Business Forum (LBF)Overview – Lao Business Forum (LBF)

• Established in March 2005• Three-way partnership between

Government of Lao PDR (CPI), IFC-MPDF, and Lao Business Community

• Draws on lessons from IFC-managed Vietnam Business Forum and Cambodia Private Sector Forum

• Formal Dialogue mechanism designed to • Improve the business enabling environment by

providing platform for effective dialogue between the business community and the Government

• Facilitate information-sharing with potential investors

Objectives Objectives

• Facilitate dialogue between the goverment of Lao PDR and the private sector, which incudes the broadest private sector participation possible

• Promote consistent enforcement and non-discretionary interpretation of laws and regulations

• Remove the barriers that businesses face with regard to entry and exit

• Provide feedback on various Government policies affecting the private sector

• Provide feedback on draft Government laws and regulations that could affect the private sector

• Assist the Lao government in developing the private sector

StructureStructure

Manufacturing WG Service & Trading WG Tourism WG Energy & Mining WG

Inter ministerial Committee

WG Representatives

Secretariat – IFC MPDF

Lao Business Forum

Donors Government LNCCI, BMOs, WGs

ProcessProcess

PSWG –PS meets and identifies issues

Formal bi-annual Forum - Status updates on priority issues by PS and Govt

PSWG – Leaders develop issues, recommend solutions, prepare position papers

Formal WG – PS and IMT meet to discuss and work on high priority issues

Govt agencies decide on solutions

Tools – Issues MatrixTools – Issues Matrix

SECTION :1 AVIATION, AIR TRANSPORT & CONNECTIONS

Private Sector Issues PS / Recommendations Progress at / WG meeting Forum / Current status A ch ieved

1.1 Transportation Policy

Air transport (both international and domestic) is this PSWG's main worry. There are no direct international flights from/ to Europe, the US or Japan. The number of domestic flights per year is unsatisfactory (i.e. 53,000 seats VTE-LPQ or 6,500 seats VTE-PKZ). Increasing air traffic is not only crucial to tourism, but to other industries as well.

Businesses would like more information regarding the government's current policy and planning for the aviation sector. For example, what is being undertaken to increase the seating capacity of the airlines?

1) Lao Airlines development and policy must be a priority. Government should consider forming a joint venture or cooperating in other ways with an international carrier (Japan Airlines, Air France). Establishing a second domestic carrier could also be a solution

2) An "Open Skies Policy" will greatly benefit national tourism and business development by increasing competition for air travel, lowering ticket prices, and encouraging more international airlines to fly to Lao PDR. Ultimately it will help make the country a more affordable destination for travelers (as compared to other destinations in the region)

SECTION : 2 LAND TRANSPORTATION AND SECURITY

Private Sector Issues PS / Recommendations Progress at / WG meeting Forum / Current status A ch ieved

2.2 Speedboats and Noise

Speedboats are a major problem (especially between Bokéo and LPQ). They are unsafe, extremely noisy and pollute the Mekong River. Not only do they negatively impact the ecosystem but ultimately, they are reflect badly on the image the country wishes to project to tourists (peaceful contemplation, traditional culture, abundant wildlife).

Implement strict regulation of speedboat traffic on the Mekong River, including regulation of owners to ensure passenger safety.

SECTION : 3 ACCOMMODATION / INFRASTRUCTURE (North & South)

Private Sector Issues PS / Recommendations Progress at / WG meeting Forum / Current status A ch ieved

3.1 Hotel Classification

In recent years there has been a dramatic increase in the number of hotel and guesthouse rooms available in Lao PDR. Their quality varies from first-class to basic, there are no set standards, and occupancy rates vary considerably from place to place.

1) The development of a classification system for accommodation, such as an international star rating scheme, would help to raise industry standards and assist tour operators in their efforts to develop packages and itineraries

Tools – Research and Advocacy Tools – Research and Advocacy

Business Issues Bulletins

Private Sector Position Papers

Current StatusCurrent Status

• Three of four Private Sector Working Groups established (Manufacturing, Service & Trade, Tourism)

• Each PSWG has met 2-3 times to raise priority issues and develop Issues Matrix

• First round of formal WG meetings between PS and IMT completed in January 2006

• Issues Matrix being updated, position papers being prepared

• First Forum scheduled for late February 2006

Contact InformationContact Information

Lao Businss Forum SecretariatMekong Private Sector Development Facility

(MPDF)International Finance Corporation (IFC)P.O.Box 9690 Vientiane, Lao PDRTel: (856 21) 450 017-9 Fax: (856 21) 450 020

Pascale Rouzies

LBF Coordinator

Email: prouzies@ifc.org

Viengsam Soinxay

Program Assistant

Emaill: vsoinxay@ifc.org