The Investment Reform Map (IRM) is an important mechanism for the development of investment policies to attract foreign direct investment (FDI) and can assist countries that want to develop and attract investment.
Speaking last week at the opening ceremony of a consultation workshop on a draft report by the Ministry of Planning and Investment on the Investment Reform Map proposed for Laos, Deputy Minister Ms. Khamchanh Vongsengboun said the aim of the IRM was to introduce regulatory studies and lay down guidelines for practical participation in investment.
“The draft report enables the Ministry of Planning and Investment and the government as a whole to clarify the current status and the economic potential associated with global economic growth,” she said.
The IRM can identify the role of foreign direct investment in Laos, including the trends, types and shortcomings of foreign direct investment, and analysis of regulations, laws, institutions and investment promotion the policies. These can be complied in a report on investment strategy in the years to come.
Ms. Khamcanh said that, in the past, Laos did not have a clear investment reform plan.
The IRM may be able to increase foreign direct investment and build credibility in terms of the indicators that improve the investment environment in Laos.
These include facilitating business operations under Prime Minister’s Order No. 02/PM through the clarification of legislation relation to business operations, economic information and natural resources infrastructure, electricity, water supply, financial institutions, land use rights, period of investment, work operation procedures, and expenditure. All of these must be governed by unified and consistent regulations.
Investment in Laos is mainly in the fields of natural resources, including minerals, along with power generation and construction.
Laos has the potential for diversified investments so the revised plan can support investment, economic growth, improvement of the business environment, and increase foreign direct investment. This will help to generate more revenue and jobs, and create a strong socio-economic situation.
Ms. Khamchanh said she hoped report on the Investment Reform Map would be a valuable tool for socio-economic development. She advised participants to brainstorm the draft report on the initiative to ensure an effective outcome.