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Prime Minister Urges End of Tedious Policies to Improve Business Climate in Laos

Doing Business in Laos

Prime Minister Thongloun has advised line ministries to eliminate futile procedures in an effort to improve the business environment in Laos.

When addressing the 10th Lao Business Forum in Vientiane earlier in the week, the Prime Minister stated that the government is attempting to develop a suitable business environment that will simplify unnecessary procedures that are a hindrance to domestic and foreign business operations.

He pointed out that Laos has been grappling with needless challenges and obstacles, suggesting to foreign investors that the country is an unsuitable business climate thus deterring potential foreign investors. He added, “for instance, the complicated and slow procedures involved in imports and exports has been a long-time issue, so the Ministry of Industry and Commerce should take action to deal with the problem,”

PM Thongaloun made it clear to the relevant officials that if a solution could not be found for an issue, both the Prime Minister and Deputy Prime Minister are prepared to be relied upon as a resource and inclined to give advice on the dilemma.

“By doing so, we will be able to maintain a stable macroeconomic environment as well as promote the establishment and expansion of new and existing businesses,” he said.

Mr Oudet Souvannavong, President of the Lao National Chamber of Commerce and Industry, stated that the Lao Business Forum played a crucial part in developing the country’s business environment and that this was a platform for dialogue.

“Previously, four issues were raised by the private sector, while 14 issues are in the process of being resolved and another 13 issues still require more time to address,” he said.

Minister of Industry and Commerce, Ms Khemmani Pholsena,explained that development of the legal and regulatory environment was essential for the growth of private enterprise.

She mentioned that despite past efforts made, businesses still face a multitude of challenges associated with the unproductive laws and regulations that are reinforced across the nation. However, insight from past interventions and exploration should encourage more effective approaches in the upcoming years.

Representatives from various Private Sector Working Groups reported on issues and recommended a course of action to rectify those issues, to the line ministries during the course of the meeting,

Among the issues raised, were business taxes, particularly value-added tax (VAT) refunds, the excise tax charged for internet services, high logistics and transport costs, and inconvenient import-export procedures.

The tedious and outdated procedures required to start a business, including enterprise registration and licensing, limited access to affordable finance by small and medium sized enterprises (SMEs), and the lack of information regarding the labour market were also topics up for discussion.

Prime Minister Thongloun concluded the half-day forum by encouraging the private sector to genuinely share and discuss all unresolved issues so that they can be resolved, especially since he believes that the government should be eager in assisting them because it will contribute to the socio-economic development of Laos.

DoubleTree by Hilton Makes Investment in Laos

Doubletree by Hilton Laos

The award-winning DoubleTree by Hilton will soon be among the many new hotels to open in the heart of Vientiane. Earlier in the week, DoubleTree by Hilton Vientiane signed a management agreement with TPD Company Limited, a branch of TK Group, to manage the 160-room luxury hotel.

The announcement solidifies Hilton’s launch into Laos and the brand’s debut in the capital city of Vientiane.

Guy Philips, senior vice president of development – Asia & Australasia, Hilton stated, “the capital city of Vientiane is a key destination in Laos, with tourist arrivals making up approximately 25 percent of total annual arrivals historically. Vientiane has become a strategic market for Hilton’s first point of entry to Laos. As one of the world’s fastest-growing hospitality companies and through our strong partnership with TPD Company Limited, we are confident that the DoubleTree by Hilton Vientiane will perform well in the market.”

As the social and economic capital of Laos, Vientiane is home to a multitude of substantial financial institutions, government agencies and international businesses holding offices.

Its landlocked state has also positioned the country in a unique seat, acting as a trading hub for various goods on account of its access to Thailand and Vietnam via the Mekong River and three link bridges.

The country is foreseen to has seen a surge in economic growth from foreign investment in recent years, and is foreseen to remain one of the fastest growing economies in Asia as a result of the government’s enthusiasm to encourage foreign investors and pledging to developing the tourism industry.

Leading up to the 2016 launch of the ASEAN Economic Community, statistics showed a 70 percent increase in foreign direct investment.

In addition, the much anticipated US$6 billion, 427-kilometer Laos-China railway, that is currently under construction, will connect the Kunming-Singapore railway and will run through central Vientiane making Laos a vital part of the project.

The economy is expected to see a boost in trade and tourism and spur economic growth within the capital.

The DoubleTree by Hilton Vientiane is located on the intersection of Rue Setthathilath and Rue Manthatourath, close to the iconic stupa, That Dam. The hotel is also conveniently located about five kilometres from Wattay International Airport and is scheduled to open in early 2020.

Khammouane Authorities Shut Down 281 Furniture Plants

Illegal Furniture Plants

281 family-operated furniture plants that have been operating without the necessary permits in the districts of Thakhaek, Hinboun, Bualapha, Yommalath, Nongbok, Xebangfay, Xaybuathong, Nakai and Khounkham, were ordered shut down by Khammouane Provincial authorities.

The Provincial Governor recently issued Decision No.587, a cease and desist of family-operated furniture units without the necessary licensing, assigning provincial Industry and Commerce Department to announce the instructions to relevant sector operators and local authorities to execute the order which is scheduled to be completed within two months.

Deputy Head of Industry Division, Mr Vong Xaysana stated that, the Industry and Commerce Office in each district will set forth the mandate so that illegal family-operated furniture plants will be successfully suspended as planned.

Inspections at wood processing facilities revealed an estimated 89 wood processing plants were operating without licences, while others failed to meet certain standards entirely.

An approximated 78 factories will need to show improvements and management directives shortly after Lao New Year, particularly those located near protected forests.

Meanwhile in Savannakhet, provincial authorities ordered termination of 253 family-based furniture plants, most operating without the proper business licenses.

The department recently auctioned off more than 716 cubic metres of confiscated timber that had been illegally logged, fetching over 1.3 billion kip for the state.

Thousands of Lao Nationals Duped by Asianface Company

Owner of Asianface Company, Cambodian investor Mr Hout Sovanh, was arrested earlier this week after numerous investors bombarded his office in Vientiane on Monday, demanding that their investments in a joint venture be returned.

The owner of Asianface Company Ltd  has been accused of failing to pay dividends to his investors as agreed upon and had previously guaranteed to refund investor money, but ultimately never did.

Asianface  was established in June 2015, and was legally licensed as a consultant firm to give advice on business establishment and operations, however the owner has been caught moving funds to do business in real estate.

Mr Hout has allegedly mobilised members of the population to invest in his real estate business, which violates the relevant Lao laws and regulations.

By enticing members of the public with the promise of a high, nine percent return per month, the company has seduced scores of investors within a short period of time.

According to the official of the Enterprise Registration and Management Department, the company has been warned by the department to cease and desist its illicit activity.

Those who invested explained that in mobilising capital, the company would inform them that its investment would involve developing properties such as condominiums, hospitals, markets and schools.

The company also develops and allocates land, in which land use rights are owned by the company, and encouraged people to invest at a special price.

Along with the 9 percent monthly dividend, the company touted additional incentives, including free package tours to foreign countries.

More than US$12 million has been contributed by an estimated 10,000 people, with personal contributions starting at US$1,000.

Originally, the company followed through on their promises, paying dividends to all its investors, up until August of 2016.

However, since the company has suffered financially, new investors have not seen any dividends at all.

Asianface Building

The company had previously issued an announcement informing all investors it could no longer accept new shareholders, due to the government’s prohibition.

Investors were notified a short while later that the company would no longer be paying dividends and those who intended to withdraw their money could do so on January 15, 2017 along with an additional 20 percent interest.

Those who opted to continue in the joint the venture would be paid their dividends every six months instead of monthly and those who wanted land, in which land use rights are owned by the company, could also choose so instead of taking cash.

On January 15th of this year, numerous frustrated investors sat and waited in the company’s office in Phontongchommany Village, in the Chanthabouly District, anticipating to withdraw their money from the venture.

However, according to an infuriated investor, no money was returned as promised.

Taking into account the complaints of scorned investors, authorities intervened, resulting in the signing of an agreement on January 18, 2017 in which the company pledged to return all funds to the investors by March 27, 2017.

In fears that tensions will magnify, district police have decided to keep Mr Hout in custody.

Security, industry and commerce officials overseeing the issue said that it was in the process of being reported to higher authorities to seek further guidance in resolving the matter. However, an official of the Cambodian Embassy to Vientiane has already been notified.

More than 20 companies have illegally raised funds from members of the public, government spokesman Prof Dr Chaleun Yiapaoher said recently, citing a report from the Central Bank presented to the National Assembly.

The government has instructed a proper investigation into the issue to seek a solution.

Strong Winds and Thunderstorms Wreaks Havoc on Kasy District, Officials Say More To Come

Storm in Kasy

Due to thunderstorms and strong winds on Wednesday evening, fifteen houses and one school building in  Kasy District, Vientiane Province were damaged. Two young girls were also reported to have sustained minor injuries.

Head of Kasy District Office, Mr Phengkham Chanthamoungkhoun, stated that heavy winds and rain picked up at around 4:30pm and persisted throughout the rest of the night leaving communities impaired by it. Phonsavath, Viengsamai and Nongbuathong were the three villages that saw the most damage from the storm.

Property damage was estimated at over 127 million kip, battering 13 houses and downing 10 trees. Meanwhile, violent winds tore down a house in Nongbuathong village and a school building in Phonsavath village leaving behind many buildings roofless and with heavy structural damage.

Severe weather conditions are anticipated to become increasingly prevalent in Laos as global air and sea temperatures rise in unison with the effects of human-induced climate change.

A weather forecast made by the Weather Forecasting and Aeronautical Meteorology Division of the Meteorology and Hydrology Department, predicts that all regions around the country will see hot weather intensify by 1-3C from March 30 to April 1.

High temperatures are expected to be followed by heavy wind gusts and light rain in some districts.

In Vientiane, temperatures are anticipated to range from a low of 23 to a high of 38 degrees C.

In northeastern areas, temperatures are set to range from 16-30 degree while in the northwest, temperatures are set to lie within an 18-37 degree band.

Central areas will see temperatures set to range from 24-37C while the south can expect temperatures varying from 12-27C.

The Meteorology and Hydrology Department is asking officials and residents in the affecting provinces to reinforce awareness in preparation for the extreme weather changes, particularly in cases with children and elderly people. The department is also urging the public to monitor national and local news media for weather updates.

Film Review: Beauty & The Beast

Beauty & the Beast

By Bruce Worthington
To be perfectly honest, I didn’t expect to like Disney’s live action update of their Oscar-nominated animated film
Beauty and the Beast. The trailer has been screening at Vientiane Center for the past six weeks, and while the music certainly stirred up a bit of that nostalgic warmth Disney has perfected, the whole effort seemed more than a little unnecessary.

That said, it only took about five minutes for my initial cynicism to wear down. My wife and I sat next to a father who had brought his two kids to the movie, and they were totally engrossed, leaning toward the screen for the better part of the two-hour run-time exchanging barely-hushed whispers. I’m pretty sure their enthusiasm added to the whole experience, if for no other reason than it reminded me of the hours my sister and I spent in the cinema as kids doing exactly that.

How does it compare to the original? That’s definitely the question I would have wanted an answer to before seeing the movie. There’s an entire debate about whether there’s any value in updating a classic, and considering that Beauty and the Beast is certainly a prominent entry in Disney’s animated back catalogue, I think it’s a question worth asking. For the record, I’m not totally opposed to the idea of the Hollywood studios taking another crack at their old properties, especially since the original Beauty and the Beast is just over 25 years-old.

From my perspective, the real question behind any comparison is actually: Is this movie a shameless attempt by Disney to cash in on my childhood? The best answer that I can give is simply, by the time the credits rolled, I felt like Disney had earned the 40,000 kip ticket price. Were there things I missed from the original? Absolutely. Are the highly-advertised new songs as good as the songs you know and love? No, but they’re not so bad that you even remember them by the time the film launches into something you can sing by memory.

If anything, I think I really only have one complaint about the film and it has to do with the computer generated characters, but it’s not the complaint I think you’re expecting. Lumiere and Cogsworth and the rest are beautifully rendered, but a bit too much so. They feel a little too tangible and real, and because of that I felt some persistent anxiety about them breaking. Especially the little teacup, Chip, who just carelessly throws himself around the room. But maybe that’s just me needing a bit more whimsy in my animated furniture.

The film doesn’t feel like it was hastily assembled by a corporate board chuckling maniacally over their ability to squeeze your wallet dry because you hear a song that triggers a burst of wonder in the far reaches of your memory. Disney has handed the material over to filmmakers and actors that seem genuinely respectful of the classic, and the production and art direction is beautiful. Luke Evans in particular makes an awesome Gaston.

If you’re trying to decide whether to wait for the DVD, I’d definitely recommend that you see the film in the cinema, mostly because I’m just not sure how impressive the spectacle of it all will be on your TV at home. ‘Be Our Guest’ is a roller coaster on the big screen.

Beauty and the Beast is screening in English twice daily at the Major Platinum Cineplex at Vientiane Center on Khouvieng Road. Check the app for showtimes.

Officials Regulate Expired Foods On Retailers Shelves

expired foods

Locals have been encouraged by officials to purchase consumer goods marked with price labels and logos in Lao language.

On March 22, the Head of the Domestic Trade Promotion Department, Ministry of Industry and Commerce, Mr Somxay Nonglath, pledged to regulate and fine merchants who do not clearly price their items accordingly and are actively selling smuggled merchandise.

The Ministry of Industry and Commerce has issued an order making it mandatory for local merchants, producers and distributors to place clear pricing labels on products and to remove all expired products off the shelves.

This measure is intended to protect both the buyers and vendors.

This year, a procedure has been introduced to monitor and control stamping price labels on products and expired products in factories and markets.

The Domestic Trade Promotion Department, Ministry of Industry and Commerce, is currently responsible for regulating and monitoring the stamping price labels and expiration date on products.

For any additional questions or complaints, the general public can reach the Domestic Trade Promotion Department, Ministry of Industry and Commerce via telephone hotline (No 1510)

First UXO of the Year Detonates in Xieng Khouang

UXO Laos

A hidden unexploded bomblet, known in Laos as a `bombie’, exploded on Tuesday in Paek District, Xieng Khouang province, tragically killing one child and injuring five adults and seven other children.

The lead of the hospital’s surgical team, Dr Sivay Vongthongchit, has informed the public that three people were severely injured and have undergone surgery to remove the shrapnel, while one of the victims remains in critical condition in the provincial hospital.

While the remaining victims with minor injuries had also received treatment at the hospital, they were quickly taken care of and discharged.

Dr Sivay stated that badly injured patients would need treatment for several days but assured that the provincial hospital would be able to care for them.

The disastrous event occurred on Tuesday afternoon in Nhotngeum Village, at a Hmong family home where relatives and children of the family had gathered for a traditional ceremony.

Chief of the district Police Headquarters Lieutenant Colonel Khamphay Phomchaleun explained that, the relatives were helping the host to prepare food and the children were playing in the front yard when the bombie exploded.

The Lieutenant Colonel speculated that the bombie may have detonated as a result of the the children giving off vibrations from jumping rope in the yard.

The bombie likely belongs to one of more than 270 million cluster munitions that showered Laos during the Indochina War (1963-1974) when US warplanes discarded over 2 million tonnes of ordnance across the small country.

Up to 30 percent of the fatal weapons failed to erupt, establishing Xieng Khuang as one of the most heavily-bombed provinces in Laos.

An official from the province’s Labour and Social Welfare Department announced that a non-government organisation was offering assistance and support to the survivors in addition to what is provided by the state.

Though three UXO explosions in Xieng Khuang were reported last year resulting in seven injuries, no lives were claimed.

Statistics have shown, that since the end of the war in 1975, UXOs have killed and crippled tens of thousands of civilians in Laos.