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Expert Clarifies Differences in Poverty Statistics

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The number of people living in poverty nationwide, which has been shown to be increasing, doesn’t mean their living conditions are getting worse but instead reflects changes in criteria for measuring poverty.

An expert from the Central Committee on Rural Development and Poverty Eradication (CRDPE) made the clarification at a lecture held last week in Vientiane to mark International Day and National Week for Poverty Eradication, which ran from October 17 to 24.

The confusion occurred concerning the figures provided by a report from the Lao Statistics Bureau (LSB) titled “Lao PDR 2015 Census- Based Poverty Map: Province and District Results”.

The report, which was issued during a meeting in July, showed more than 65,000 poor individuals living in Vientiane, which accounted for 8.5 percent of the 772,000 population, while the report disseminated by the capital administration at a session of the Vientiane People’s Council held in May showed only 13 poor families in the capital.

The LSB report map also showed that around 39,000 people in Phongsaly, 105,000 in Huaphan, 95,000 in Luang Prabang, 104,000 in Khammuan, 302,000 in Savannakhet, 183,000 in Saravan, and 164,000 people in Champassak provinces were living in poverty.

A figure unveiled at the lecture showed that about 76,000 families were living  under the poverty line in 2015 accounting for 6.6 percent of all families in the country. Around 456,000 individuals are poor if each family has six members on average.

The number is still lower than the number of poor people in Khammuan and Savannakhet provinces combined, according to the map.

The LSB report map was put together based on the Lao Expenditure and Consumption Survey (LECS), which was conducted in 2012/13 (LECS- 5) and the 2015 Population and Housing Census. LECS-5 covered a sample of more than 8,000 households comprising about 43,000 individuals.

The authors of the Lao PDR 2015 Census-Based Poverty Map said in the report that LECS-5 was the most appropriate in terms of timing and also collected information similar to the Census questionnaire, which was relatively detailed.

However, they said the questionnaire contained no information on either household incomes or household expenditure, but covered, at individual level, demography, education, economic activities and durable goods ownership. At the household level, dwelling characteristics were covered.

Regarding the difference between the number of poor people indicated by the LSB report map, which is much higher than that stated in the lecture, Head of the CRDPE’s Office of Planning and International Cooperation, Mr. Chit Chanvisay, asked those present not to panic.

“This is not about people who have returned to poverty, but this means the standards for measuring poverty have been improved,” he said.

In the past, if a man had a bicycle he was recognised as poor, while if that man had a motorbike today he would complain he was poor, Mr. Chit said.

“Our country accepting new, higher-standard targets means the country has been improved,” he added.

 

Source: Vientiane Times

Laos Gears Up for GI Products

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Through the imminent signing of new geographical indication (GI) regulations Laos should be able to add products to this list in the near future.

Interest in GI has grown worldwide which can promote traditional production methods and certification of products associated with a region. In the last decade, over 150 GIs have been registered in Southeast Asia alone.

The information was revealed by the United Nations Food and Agriculture Organisation (FAO) Representative to Laos Dr Stephen Rudgard during the Regional Seminar on the Promotion of Geographical Indications, held on Wednesday in Vientiane.

In his opening speech, Dr Rudgard congratulated the Ministry of Science and Technology on the signing of a Memorandum of Understanding between the Lao and Cambodian governments for cooperation on Trademarks and GI as well as for hosting its first “GI week”.

“The organisation of this seminar, as well as the GI week in Laos, are both a great opportunity for participants to share common experiences and success stories on GI promotion – both at public and private levels – and to further disseminate GI awareness,” Dr Rudgard said.

GI was a name or mark used on certain products corresponding to a specific geographical location or origin, he explained. “A GI mark on a product certifies that it has certain authentic qualities, is produced using traditional methods, or has a reputation because of its geographical origin.”

Some examples of GI products many people may already know are: Champagne from France, Lamphun Brocade silk from Thailand, Kampot Pepper from Cambodia, Darjeeling Tea from India, Van Yen Cinnamon from Vietnam and Kobe Beef from Japan.

In order to receive a GI certification on a product, Dr Rudgard explained that farmers have to meet the specification standards on origin, production and control mechanisms of the product.

The GI legal protection aims to protect and empower smallholder producers as well as raise awareness among consumers on the quality and authenticity of products, particularly those that may not be as popularly known as others.

The GI initiative encourages producers and manufacturers to increase their production to meet the demands of more quality- conscious consumers, but all the while keeping the essence and traditional ways of production.

In addition, GI also promotes the socio-economic development of the region from which these products come.

“These GIs are important for local producers because GI helps small-scale producers sustain their unique identity as well as switch from quantitative to qualitative strategies in promoting their products in markets,” Dr Rudgard added .

Like in many developing countries, around 80 percent of the rural population in Laos is dependent on agriculture for their livelihoods. Therefore, promoting small-scale farmers through GI contributes to reducing poverty and hunger, according to FAO.

 

Source: Vientiane Times

Agricultural Research in Remote Areas to Be Extended

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The National Agriculture and Forestry Research Institute and National University of Laos will continue a collaborative research project for the improvement of the livelihoods of small-scale farmers in semi-mountainous areas.

The two parties will continue to work at the Japan International Research Centre for Agricultural Sciences (JIRCAS) for the development of the project after seeing the progress made under the project from 2011-2016.

The message was relayed during an inception workshop held yesterday in Vientiane led by the Deputy Minister of Agriculture and Forestry Mr. Thongphat Vongmany and the Ambassador of Japan to Laos Dr Takeshi Hikihara.

The three parties are also planning to carry out the following four components of the projects in Laos, particularly in the central and northern areas, according to a statement from the institute.

Those components are multiple use and value addition of the regional resources for sustainable improvement of productivity in semi-mountainous villages in Indochina; formation of food value chain through the value addition of food resources for supporting sustainable rural development; development of forestry technologies in indigenous tree plantations on slopes in Laos; and technical development for the captive breeding of indigenous freshwater shrimp.

The above projects include more research fields to try to improve the food value chain, forestry and indigenous shrimp culture techniques in addition to the livelihood improvement of the small scale farmers in semi-mountainous areas.

Yesterday’s meeting was co-chaired by the university’s Acting President Prof. Dr Somsy Gnorphanxay , JIRCAS President Mr. Masa Iwanaga, and the institute’s Director General Dr Bounthong Bouahom.

Source: Vientiane Times

500m Yuan Payout for Property Owners Alongside Railway May Be too Small

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The compensation to be paid to the owners of parcels of land and buildings that will be used or demolished to make way for the Laos-China railway may not be enough.

Ministers addressed this issue at the National Assembly’s ongoing debate session on Wednesday, answering questions put by Assembly members concerning the compensation to be paid to property owners living in areas where the railway will be built.

Minister of Public Works and Transport Dr Bounchan Sinthavong said that 500 million yuan (about 599 billion kip) had been allocated for compensation payments, but he thought this amount may be insufficient.

“To ensure that the many people who will be affected by the railway will receive compensation, we have negotiated payments with the Laos-China Joint Venture Company,” he said.

One of the questions concerned the planned 50-metre section of land that is to be fenced off along either side of the railway, which in some places runs close to Road No. 13 North and other roads. The questioner wondered if it would be possible to reduce this width.

Dr Bounchan said the matter had been discussed with the Laos-China Joint Venture Company and the consulting company on Tuesday, when officials said this might be possible, but stressed that safety must be assured alongside the track.

It was also stated that people living in the provinces and in Vientiane would be able to grow rice alongside the railway.

Assembly members put 15 questions to the Minister of Public Works and Transport, but he was only able to answer seven in the time available.

Minister of Planning and Investment Dr Souphanh Keomixay said the railway project was 70 percent owned by China and 30 percent by Laos.

Construction is scheduled to begin in December after the signing of a concession agreement in November. The US$6 billion railway, to be built over a distance of 427 km, will be completed by 2021.

The railway will use a 1.435-metre standard-gauge track. There will be 33 stations, 21 of which will be operational initially.

There will be 72 tunnels with a total length of 183.9 km, representing 43 percent of the railway’s total length. The line will also have 170 bridges totalling 69.2 km in length, accounting for 15.8 percent of the total.

Passenger trains will travel at 160 km per hour, while the speed of rail freight will be 120 km per hour.

The railway in Laos will link with the track in Thailand to form part of the regional rail link known as the Kunming-Singapore railway, covering a total distance of about 3,000km.

Source: Vientiane Times

Govt Talks Tough in a Bid to Save Money

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Limiting expenses on overseas travel, entertaining foreign guests, and civil servant numbers will be among government measures to save state resources and relieve financial tensions.

Deputy Prime Minister and Minister of Finance Mr. Somdy Duangdy yesterday outlined the plan at the ongoing ordinary session of the National Assembly (NA) in response to a query by the NA Secretariat.

“We will reconsider what amount of money will be allocated appropriately for overseas trips by officials,” Mr. Somdy said, giving this as an example of a savings measure.

A suggestion was raised concerning the appointment of the head of a ministry or province to lead a committee implementing the savings policy, with results to be reported regularly to higher authorities.

During the debate on the National Socio-Economic Development Plan, NA members questioned the large number of civil servants, pointing to the Ministry of Home Affairs as an example, which they said was overburdened with salary payments.

Mr. Somdy said the government would scrutinise the number of civil servants and jobs at that and other ministries, aiming to streamline government bodies and save resources.

The Deputy PM made mention of the Ministry of Finance’s announcement No. 2878 dated September 1, 2016, on savings measures, which instructed budgetary units not to spend their remaining allocated money on expenses during fiscal year 2015-16.

Mr. Somdy said around 1 trillion kip had been saved following the announcement as about 96 percent of the allocated state budget was spent in the year.

The government also plans to strengthen legislation such as the decree relating to procurement, construction, repairs and services, which uses public money.

“We will improve the determination on office construction and repairs to be more concrete, and use Prime Ministerial Decree No. 03 on procurement, bidding and tenders as a tough tool in managing expenses by government agencies,” the Deputy PM said.

Chronic violation of financial discipline by budgetary units and government officials was a major concern raised by NA members.

Mr. Somdy promised that his ministry would evaluate the use of budgets by sectors at the central and local levels.

Tough and decisive measures will be imposed on budgetary units found to be in violation, while promotion will be given to those who use money transparently and effectively for planned purposes. Allocations will be increased for some units next fiscal year in accordance with government agreements.

The Ministry of Finance will strengthen post-expense monitoring and inspection, which will be done quarterly and reported to higher authorities with appropriate penalties for violations.

Improvements of inspection authorities within ministries and agencies and the enhancement of measures against offenders have been proposed by the government with a special focus on revenue collection.

Mr. Somdy said his ministry is drafting legislation on the management of civil servants and officials within the ministry, especially staff responsible for revenue collection and expenditure.

“This second piece of legislation will be an additional specific tool along with the Law on Civil Servants, which will toughen up the law,” he said.

“Offenders within the finance sector will receive tougher punishment than offenders in other ministries and agencies,” Mr. Somdy added.

Source: Vientiane Times

LPB Film Festival Releases Movie Lineup for 7th Annual Event

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Laotian Times
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The Luang Prabang Film Festival (LPFF) is pleased to release the lineup for its seventh annual event, which will run 2-7 December 2016.

Official selections are made by experts and critics from across Southeast Asia referred to as “Motion Picture Ambassadors,” and represent a carefully chosen collection of what they believe to be the finest contemporary films from their respective countries. By identifying great curators with inside understanding of their community’s film scene, LPFF is able to produce a unique program that ensures in the inclusion of the strongest voices from across Southeast Asia.

Not only is LPFF a celebration of the finest Southeast Asian cinema, it has become well known as a unique forum for regional film professionals to network internationally and to exchange diverse ideas and experiences.

The feature films in the 2016 festival program are:

A Copy of My Mind (Indonesia)*

A Yellow Bird (Singapore)

About a Woman (Indonesia)

Apocalypse Child (Philippines)*

Back to the 90s (Thailand)

Banana Pancakes and the Children of Sticky Rice (Laos)*

Before the Fall (Cambodia)*

Brutal (Malaysia)*

Cambodian Son (Cambodia)*

City of Jade (Myanmar)

The Crescent Moon (Indonesia)*

Diamond Island (Cambodia)*

The Down (Thailand)*

Finding Phong (Vietnam)*

Fundamentally Happy (Singapore)*

Haze (Philippines)

 Joking Jazz 4G (Thailand)

Khunpan (Thailand)*

Louis Loves Baitong (Laos)*

LOVE (Vietnam)

Love Forever (Laos)*

Lovesucks (Thailand)*

Ma’ Rosa (Philippines)

May Who? (Thailand)

Ola Bola (Malaysia)

Question of Faith (Indonesia)*

The Return (Singapore)

The River Flows (Laos)*

Senior (Thailand)*

Sweet Twenty (Vietnam)*

There’s No Forever (Philippines)

Y/Our Music (Thailand)*

 

*Films with confirmed directors, producers, or actors in attendance.

In addition to LPFF’s feature film screenings, LPFF will also have four programs of short films: a collection of recent architecture-themed titles including The Man Who Built Cambodia by Christopher Rompre and Haig Balian, and Aditya Assarat’s La Scala; a selection from the 2016 Vientianale Short Film Competition that will showcase budding talent in Laos; Philippine shorts to compliment the festival’s SPOTLIGHT (see below); and recent award winners on Viddsee, an online video platform featuring short films from across Asia.

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There will also be several major public discussions this year for visitors of the festival, including a discussion on online programming and video-on-demand, featuring Siam Film Associates, an aggregator for Netflix, and FilmDoo, a TVOD service with films from over 125 countries. This year’s SPOTLIGHT program is on the Philippines, with a full day of programming devoted to screenings and discussion of Philippine features and shorts, showcasing the nation’s exciting and rapid development in film production. This program will be hosted by Francis “Oggs” Cruz, LPFF’s Motion Picture Ambassador for the Philippines.

In an exciting new collaboration, staff from Tribeca Film Institute® (TFI) will be attending the festival this year, leading a Talent Lab for Southeast Asian filmmakers on grant writing and project pitching. After sessions of instruction, practice, and a pitch forum with feedback given by various industry professionals, one project showing great promise will be selected by TFI to attend the TFI Network market, which will take place in New York City at the 2017 Tribeca Film Festival®. There, TFI will arrange meetings for the filmmaker with editors, distributors, and financiers. TFI will then mentor him/her through the completion of the project. Later this month, a call for applications will be released, inviting Southeast Asian filmmakers to apply to participate in this Lab.

Well over half of the festival’s films have already confirmed the attendance of their directors, producers, or actors. These filmmakers will participate in numerous festival events, including post-screening Q&As at the LPFF Day Venue located at Sofitel Luang Prabang.

LPFF will offer five live evening performances on its main stage before headline screenings at its Night Venue, the Handicraft Market at the main intersection in town. There will be live dance, music, and theater, as well as a concert with some of Laos’ brightest stars.

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On display will be an exhibition of photographs from Myanmar ­­­­from the lauded Southeast Asia Movie Theater Project, accompanied by a presentation by the initiative’s founder, Philip Jablon. As a reprise to his trip there over five years ago, Jablon spent February and March of this year researching and photographing movie theaters in Myanmar, a nation experiencing an overall rebirth of cinema-going. Included in the exhibition will be images from both research trips.

All screenings and activities of the festival are free and open to the public.

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The festival’s biggest sponsor this year is the Lao Brewery Company with three of their brands: Beerlao Gold, Pepsi, and Tigerhead. The amount of funds LBC has invested is the largest the Luang Prabang Film Festival has ever received from a single company. It is also the largest amount that LBC has ever given to an external project in its history.

This year, Oxfam International has supported LPFF’s Lao Filmmakers Fund, a publicly-generated fund that allows filmmakers in Laos to apply for grants to help realize their film projects. Oxfam’s donation has allowed local filmmakers to apply for grants of up to $10,000 USD per project. Last year’s grant recipients were Suliyachak Phuntulad and Mattie Do, and this year’s winners will be announced in early November.

Other supporters of the 2016 festival are the US Embassy Vientiane, The Asia Foundation, Exo Travel, Chillax Productions, Dao Coffee, Sofitel Luang Prabang, the Nam Theun 2 Power Company, Indochina Productions, l’Eléphant, DK Lao, Theun-Hinboun Power Company, EQHO, Aenoteca, NP Service & Design, and Final Draft.

To book a trip to the Luang Prabang Film Festival, please contact Exo Travel at laos@exotravel.com. As LPFF’s Official Travel Partner, Exo Travel has exclusive access to preferential rates with LPFF’s Hotel Partners, which include: Ansara Hotel (in Vientiane), Apsara, Belmond La Résidence Phou Vao, Cold River Guesthouse, Kiridara, Le Sen Boutique Hotel, Lotus Villa, Maison Souvannaphoum, Mekong Riverview Hotel, Sala Prabang, Sanctuary Hotel, Satri House, Sofitel Luang Prabang, Villa Chitdara, Villa Maly, and Villa Maydou. Furthermore, booking with Exo Travel directly supports LPFF, as a percentage of each booking goes back to the project.

For more information on the festival, visit lpfilmfest.org or stay up to date at facebook.com/lpfilmfest.

For press enquiries, please contact eliza.mott@lpfilmfest.org.

4,369b kip Needed to Repair Riverbank Erosion

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Repairs to riverbank erosion along the Mekong and one of its tributaries, the Heuang River, will cost about 4,369 billion kip, Minister of Public Works and Transport Dr Bounchan Sinthavong has said.

Dr Bounchan made the statement on Wednesday when answering questions put by National Assembly (NA) members concerning riverbank protection during the ongoing debate session.

Some 289 kilometres of riverbank along the Mekong in various parts of the country and alongside the Heuang in Xayaboury province have crumbled, and about 120 km has been shored up with the building of embankments.

Dr Bounchan said there are now about 168 km of riverbank that are suffering from erosion and it will cost 4,369 billion kip to carry out repairs and build embankments.

“The National Assembly will have a big headache with this matter because the cost of shoring up these areas is high,” he said.

A survey undertaken by the Ministry of Public Works and Transport found that sections of riverbank in the provinces of Borikhamxay, Bokeo and Xayaboury had collapsed.

A 520-metre section of the Mekong riverbank in Tonpheung district, Bokeo province, was found to be eroded and it would cost more than 13.8 billion kip to rebuild it.

An official told Vientiane Times that since embankments have been built along the Mekong, less erosion is occurring than in the past, after several square kilometres of land disappeared into the river in years gone by.

In some areas 10 to 20 metres of the riverbank eroded away over a period of many years, and even today two to three metres of riverbank is being lost during flooding.

According to the ministry, the Mekong riverbank is increasingly being protected against erosion through the construction of embankments, with the work beginning in 2007 and 2008.

Many towns located along the Mekong are now protected, including Vientiane, and about 50 percent of the riverbank running through towns has been shored up against erosion.

The Mekong River floods perennially during the rainy season in July and August.

A 79-kilometre section of the Mekong riverbank in Borikhamxay province is in need of an embankment, but less than one kilometre has any defences against erosion.

A provincial official, who asked not to be named, told Vientiane Times that a survey of 197 kilometres along the Me kong in the districts of Pakxan, Thaphabath and Pakkading revealed that 79 kilometres were subject to subsidence in the rainy season.

In October last year, people living in 14 houses in the Phonson area of Phabath village in Thaphabath district had to move out quickly after four houses slid into the Mekong and 10 houses were damaged due to torrential rain.

Source: Vientiane Times

Unlawful Financial Institutions Warned of Legal Action

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Illegal financial institutions that have sourced funds by offering abnormally high interest rates will face legal measures, the governor of the central bank has warned.

Governor of the Bank of the Lao PDR, Dr Somphao Phaysith, told the ongoing ordinary session of the National Assembly (NA) that 24 institutions have been found acquiring deposits illegally. He said the bank has issued a notice instructing these institutions to cease their illegal activities, but some are still operating.

Dr Somphao was responding to questions raised by NA members after learning that these financial bodies had carried out unlawful campaigns to persuade people to deposit money with them. Some entities have offered interest rates as high as 9 percent a month.

NA members raised concerns over the potential risks, fearing that people will be tempted by such offers and end up losing their money.

Parliament member for Huaphan province, Mr. Khamvone Bounthavong, said three enterprises including one reportedly owned by a Cambodian national and another one owned by a Thai national were currently mobilising funds in the northern province.

He said these businesses had opened accounts at a branch of a Lao bank in Huaphan as a channel to transfer interest to their customers. He added that the one owned by the Cambodian reportedly had an office in Vientiane, while the location of the head office of the Thai-owned business was not known.

Middlemen helping these operations to source funds are given 5 percent of the money they drum up, Mr. Khamvone said.

“A number of people and some state officials have deposited money with them,” he said, calling for the central bank to look into the matter.

Mr. Khamvone said the central bank was aware of this issue because banks in Huaphan had alerted officials to the situation.

“Some operations have persuaded as many as 200,000 people to deposit money with them,” Dr Somphao said, adding that as much as 6 to 9 percent in interest had been offered.

Given that these businesses have offered such a high rate of interest, the governor believed they would be unable to survive.

Dr Somphao said the central bank had carried out inspections in some provinces.

Some 19 out of the 24 institutions have been licensed by the Ministry of Industry and Commerce and the activities they were allowed to operate were outlined. But it was found that they were mobilising funds from members of the public, which was a banking operation and they were not entitled to do so, Dr Somphao explained.

The remaining five transnational institutions were also sourcing funds in Laos without permission and appeared to have no offices in the country .

Dr Somphao admitted it was hard to regulate these five institutions when they did not have offices in Laos.

Despite the fact that the central bank has instructed these institutions to cease their illegal operations, some were continuing to breach the regulations.

“To address this issue, the relevant sectors need to step up coordinated action and strictly enforce the law,” he said.

“Those found to be in violation must face measures in accordance with the law,” he added.

Enterprises wanting to operate as financial institutions are required to undergo the proper procedures and legalise their businesses, Dr Somphao said.

There are currently 158 legal financial institutions operating under the management of the central bank.

Source: Vientiane Times

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