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Laos Gets $850,000 Containerized Data Center

Laos’ first state-run data center opened recently, funded by a Japanese program supporting environmentally sound technology.

The facility marks “a big step” toward improving the nation’s IT environment, Science and Technology Minister Boviengkham Vongdara said at a ceremony held on Nov. 29 in Vientiane, the capital.

Laos’ information technology infrastructure is among the weakest in Southeast Asia, with state employees often using webmail for official business for want of government email accounts. The new data center will initially provide much-needed network capacity for government institutions.

A Japanese consortium involving internet service provider Internet Initiative Japan, trading company Toyota Tsusho and Mitsubishi UFJ Morgan Stanley Securities supported the facility, which was built as a demonstration project.

All funding was provided by Japan under a program run by the government-backed New Energy and Industrial Technology Development Organization, or NEDO. Once the trial phase ends in February 2018, the data center will be handed over to the Laotian government.

The data center’s servers are housed in shipping containers for easy transport and setup — an approach suited to developing countries like Laos. Containerized data centers consume 40% less power than facilities housed in self-standing structures. Setup involves simply transporting the containers to the desired site and connecting all the equipment. In the case of the Laotian project, construction took only seven months or so, or 70% less time than building a conventional data center.

The facility is estimated to cost less than 100 million yen ($850,000), a price that even developing countries can afford. Containerized data centers have also been used in Russia and hold promise as a building block for IT infrastructure in less-developed nations around the world.

Source: Nikkei Asian Review

Ministry To Draft New Health Insurance Law

Health Insurance Law Laos

The Ministry of Health plans to introduce a Health Insurance Law to improve the healthcare system and ensure patients benefit as intended.

It is expected the law will come into effect in late 2018. It will ensure that money is available to pay patients who are members of the Health Insurance Fund for medical costs specified in the insurance agreement.

A legal expert at the ministry, Dr Chansamone Phengsavanh, told Vientiane Times yesterday the law is needed in response to public demand for an improved healthcare service system for members of the fund.

For several years now, members of the Health Insurance Fund have been complaining of the poor service they have received from hospitals. Patients say that doctors, nurses and other staff don’t provide them with good quality care.

In Laos, they say, health workers still practice old-fashioned working methods just as they did many years ago.

This means they don’t take proper care of hospital patients, believing they need only provide minimal services as they are not required by law to do otherwise.

The Health Insurance Fund is operated by the Social Insurance Agency of the Ministry of Labour and Social Welfare. But there have been problems with coordination between hospitals and the ministry concerning the reimbursement of treatment costs.

The ministry has been unable to resolve this problem because of the lack of a Healthcare Insurance Law, Dr Chansamone said.

We think that members of the fund will benefit from such a law because the Health Insurance Fund is operated by the Ministry of Health, he added.

The scheme would be administered by a government agency under the ministry so that it would be more efficient and provide a better system for patients, he said.

In 2017-2018, the ministry also plans to strengthen the Law on Disease Control, Hygiene and Health Promotion.

From 2011 to 2015 the following laws have been passed to improve the health sector: Law on Alcoholic Beverages; Healthcare Law; Law on Food; Law on Drugs and Medical Products; Law on Hygiene, Disease Prevention and Health Promotion; Law on HIV/AIDS Control and Prevention; and the Law on Tobacco Control.

According to the National Assembly, Laos now has more than 100 laws in effect.

Source: Vientiane Times

Fewer Businesses Opening in Laos

fewer businesses opening in laos

The number of entrepreneurs opening businesses in Laos declined by 13 percent over the past 10 months of this fiscal year compared to the same period last year.

According to a recent government report, the number of registered businesses reached 1,666 units from October 2016 to May 2016 with registered capital amounting to 23.8 trillion kip.

Retail and wholesale businesses accounted for 39 percent of the total, followed by transport and warehouse related business (10 percent), construction (8 percent), industrial processing (8 percent), and science and technology (6 percent).

A senior economist at the National Economic Research Institute, Dr Leeber Leebouapao, told Vientiane Times this week that the downturn was linked to several factors including the global economic slowdown, which resulted in declining demand.

“I also think that some business sectors are saturated, such as restaurants,” he added.

Dr Leeber also said the long time it took to approve the setting up of a business was to be blamed as it delayed those wanting to do business and was a deterrent in some cases.

Laos is a landlocked Least Developed Country with a population of 6.5 million people and has strong trade relations with its neighbours including China, Thailand and Vietnam.

While the Ministry of Industry and Commerce has indicated a willingness to shift to the non-resource sectors, it is not clear exactly where this policy intent is directed.

Last year the EU provided 5 million euros for the Lao National Chamber of Commerce and Industry to promote business activities between Laos and the EU.

Several months ago, commercial banks in Laos lowered interest rates on both deposits and loans in line with a decision made by the Bank of the Lao PDR.

The move supports the government’s wish to lower the interest charged on loans and thereby stimulate business activity and lower production costs, which should enable Lao products to be competitive in international markets.

This year, the economy grew by 6.9 percent which was lower than the government’s target of 7.5 percent. However, this growth rate is high compared to other countries in the region.

The economic slowdown in China and falling commodity prices on the world market have impacted on the Lao economy.

In general the Lao economy is vulnerable to external impacts because it relies too heavily on the resource sector.

Economists say it is essential to diversify the economy by encouraging more people to operate businesses that create jobs and generate more revenue for the government.

Another requirement is to make the investment process easier so that local and foreign entrepreneurs are encouraged to do business in Laos.

All of these factors will help to build a strong economic foundation that will enable Laos to be more resilient in the face of the global economic slowdown.

Source: Vientiane Times

Commission Determines to Produce a Competent Workforce

OLYMPUS DIGITAL CAMERA

The National Human Resource Development Commission is planning to build human resources in the fields of natural science and technology to advance socio-economic development and match regional and international standards.

With the ever quickening pace of development in science and technology, the commission and its development partners are jointly supporting skill upgrades so as to generate a more qualified and larger workforce. The ultimate goal is to bring social services within people’s reach and to improve their living standards.

This information was reported yesterday at the 5th National Human Resource Development Commission Meeting, chaired by Minister of Education and Sports, MsSengdeuaneLachanthaboun.

The meeting, which was attended by members of the commission and officials from the Ministry of Education and Sports, discussed the draft strategy plan for national human resource development from 2016-2020, aiming to accelerate socio-economic development.

Participants suggested there should be a focus on building human resources in the fields of natural science and technology across all educational institutions.

The ministry’s Planning Department put forward strategies for human resource development until 2025, aiming to raise Laos out of Least Developed Country status and achieve the Sustainable Development Goals.

The department’s goal is to ensure that everyone completes lower secondary school. It would also like to see a stronger healthcare network, and the provision of basic education and vocational skills to develop a competent workforce in response to the needs of the labour market.

Sound strategies for human resource development would also help to protect people from the effects of climate change and natural disasters, it was reported.

Another goal of the commission is to strengthen gender equality by encouraging more women to participate in development efforts, and to boost cooperation in human resource development with regional and international sectors.

The government and its development partners are working with the relevant agencies on human resource development, organisational improvement and public service delivery.

They recognise that training needs to incorporate analysis and human resource development planning. It is also necessary to develop models that can be replicated within other agencies and organisations in support of national, government, non-government and local human resource development.

Greater social inclusion of women and those with disabilities is a key focus of human resource development.

The main agencies involved in this effort are the Ministry of Education and Sports, the Ministry of Home Affairs, the Lao National Commission for the Advancement of Women, and the Lao Disabled Persons Association.

Meanwhile, the government and its development partners are helping the National Human Resource Development Commission to strengthen the management and implementation of the national human resource development plan.

Source: Vientiane Times

Ministry Renews Registration for Illegal foreign workers

To go with AFP story 'Laos-economy-invest-China,FEATURE' by Amelie Bottollier-Depois Photo taken March 11, 2011 shows Chinese workers repairing a road leading to the border town of Boten, a special economic zone land hired by China, in the Northern province of Luang Namtha. Recently still dependent on foreign development aid, Laos is benefitting from massive investments from its vietnamese and chinese neighbours. AFP PHOTO / HOANG DINH Nam

Authorities have extended registration for illegal foreign expatriates who are working in Laos illegally, the Minister of Labour and Social Welfare has said.

The extension was made after the last registration period from January to September this year was phased out, which has registered 24,000 foreigners working illegally in provinces across Laos.

The minister, Dr Khampheng Saysompheng, told local media recently that local workplaces in Laos still need additional labour thus utilising foreigners is still necessary.

He stated that some workplaces or projects in some localities suffered from labour shortages when foreign expatriates who had no work permits were prohibited from work or sent back to their countries of origin.

This impacted the production levels of enterprises or project operations.

Thus, he said, “We decided to continue registering foreign workers [who are still working illegally],” adding that he has told provincial departments to continue carrying out the registration and inspection of the issue.

The 24,000 foreign workers registered during the last phase are mostly Vietnamese, Chinese and Thai nationals respectively, according to information from the Labour Management Department of the ministry.

These foreigners entered Laos as workers with development projects but did not return home after the projects was phased out and their visas became invalid; instead they sought work illegally. Some came in as visitors but sought employment or engaged in trading activities illegally.

The registered alien expatriates whose conditions meet the required criteria were given six months to apply for and obtain legal documents comprising a residence permit, visa and work permit so that they are entitled to work legally in Laos.

To meet the conditions, the foreigners are required to have a workplace to certify their employment. Those foreigners such as hawkers and nail cutters or painters are given three months to clear all things and return hto their home countries afterward.

In a move to supply a larger workforce to meet the growing demand for labour in domestic workplaces, the ministry has set a target to produce 658,000 labourers by 2020 while this year it has provided 132,000 workers.

Source: Vientiane Times

Ministry, Room to Read Laos Extend Support for Rural Education

The Ministry of Education and Sports and Room to Read Laos are teaming up for the fourth phase of the Enhancing the Education of Lao Children project in six provinces.

The project is funded by the Room to Read Global Office at a cost of US$9 million, or over 72 billion kip. The project will be implemented in Vientiane, Oudomxay, Xayaboury, Saravan, Savannakhet, and Champassak provinces from July 1, 2016 to June 30, 2020.

A Memorandum of Understanding was signed in Vientiane on Tuesday between the Director General of the Department of External Relations of the Ministry of Education and Sports, Ms Chanthavone Phandamnong, and Country Director of Room to Read Laos Ms Norkham Souphanouvong.

The main activities of the project are to increase access to relevant, appropriate, and quality reading materials by publishing approximately 32 children’s books, the establishment of reading rooms or libraries in 132 schools, and equipping them with approximately 144,000 age-appropriate reading books.

Training and on-going coaching will be provided to 132 primary school directors and 264 Grade One and Grade Two teachers and 132 librarians on the effective teaching of Lao language, library management and reading activities.

The project will also design and implement supplementary teaching materials to boost non-native Lao speaking students’ Lao language skills to enhance learning outcomes.

Another objective is to create school environments that are conducive to learning. To this end, some 30 school buildings and libraries will be built with community participation.

The project aims to engage families and communities to increase their awareness and support of reading. It will also increase collaboration with the government and other NGOs to support policies and programmes to effectively and sustainably impact students’ independent reading abilities. This includes continuing to pilot Grade One and Grade Two Lao language textbooks and providing inputs to the Ministry of Education and Sports in developing the new textbooks and related materials.

Also planned are ongoing research, monitoring and evaluation activities to ensure programme quality and improvements. Imported donated equipment such as computers, books and other educational materials will be use to support the Literacy Programme once or twice a year based on the donations received.

The project aims to continue to support about 1,695 secondary school girls at existing target schools in Oudomxay, Xayaboury and Saravan provinces until they complete upper secondary education or vocational education equivalent to upper secondary education level.

Some materials will be provided for participating girls who qu alify under the project’s assessment criteria. In addition, the project will continue to support approximately 16 secondary school directors and 80 teachers with life skills and monitoring and mentoring techniques in Oudomxay, Xayaboury and Saravan provinces.

Source: Vientiane Times

BCEL-KT: Trade Summary (Dec 26, 2016)

Trade summary

Lao stock market edged higher on Monday, as BCEL got good start before preparing for long holiday to increase by 450 kip finished at 5,500 kip, amid lake of offering order. EDL-Gen closed unchanged at 5,000 kip, with 33,400 shares traded, generating just 167 million kip of turnover. While others were steady because lake of market liquidity. Total market trading volume today was 52,300 shares worth around 270 million kip. Index rose by 0.59% or 5.99 points to stay at 1,014.55 points.

Lao People’s Army to Modernize

Laos Army

Party Secretary General and President Bounnhang Vorachit has called for the modernization and improvement of the Lao People’s Army and encouraged military personnel to ensure national security and political stability in the interests of socio-economic development.

President Bounnhang, who is Secretary General of the Lao People’s Revolutionary Party’s Central Committee, offered his advice to the Army during a two-day meeting last week to review national security over the past year and discuss the plan for next year.

He suggested that leading officials of the Ministry of National Defense and commanding committees at all levels pay great attention to implementing the Party’s national defense guidelines.

Army Modernization Needed to Properly Fulfill Role

Lao People's Army

He stressed the need to improve and modernize the Army so that it properly fulfills its role as a core force in carrying out the two strategic tasks of national defense and development, and achieves success in performing assigned tasks.

Maintaining national security and political stability would also create conditions for people to make a living and improve their livelihoods, Mr Bounnhang said.

Presenting a report that reviewed the performance of the Army over the past year, Head of Office of the Ministry of National Defense, Brigadier General Khamsy Vongkhamxao, told the meeting the military had made remarkable achievements in its assigned tasks.

These achievements contributed to the fact that Laos was able to maintain security during major events such as the 10th Party Congress, the General Election of the National Assembly’s 8th Legislature, and the 28th and 29thAsean Summits among others. These events raised Laos’ profile in the regional and international arenas, Brigadier General Khamsy said.

Security during many major festivals had also been fully maintained, he observed.

“This reflects the fact that the Lao People’s Army has always been an honest force for the common interests of the revolutionary task of the Party, and in fulfilling and achieving the tasks assigned by the Party and multiethnic people,” Brigadier General Khamsy said.

He added that the army continues to improve and modernize itself for greater strength. During the meeting, participants from across the country discussed next year’s work plan for maintaining security and stability.

Party Secretary General Bounnhang praised the Army for its achievements over the past year.

Source: Vientiane Times