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Weekly Political and Economic News (Mar.29-Apr.02, 2021)

DATE
2021-04-07

NA closes with state leaders elected, development targets approved (Vientiane Times, 29.Mar.2021)
The inaugural session of the National Assembly (NA)’s 9th legislature closed on Friday following a five day sitting that elected state leaders and approved development targets. Members of the assembly approved the session’s resolutions, which elected former Prime Minister Thongloun Sisoulith as the President of Laos. The former President of the NA, Mrs Pany Yathotou, and the former Deputy Prime Minister, Dr Bounthong Chitmany, were elected as vice presidents, making it the first time that Laos will have two persons holding this position. Mrs Pany is also the first woman vice president in Lao history. The former Vice President, Mr Phankham Viphavanh, was elected as Prime Minister, replacing Mr Thongloun. Addressing the closing session, Dr Xaysomphone Phomvihane, who was elected as the new President of the NA by the inaugural session, said the entire session has been successful as targeted. The Party Secretary General and President, Mr Thongloun Sisoulith, other state and Party leaders, retired leaders and foreign guests were present at the closing session.
The session endorsed the report on the implementation of the 8th five-year National Socio-Economic Development Plan (NSEDP) for 2016-2020.Over the past five years, the average annual gross domestic product (GDP) touched 5.8 percent, falling short of the approved target. However, Laos successfully passed two of the three criteria required for gradation from the least developed country (LDC) status. As of 2020, GDP per capita reached US$2,664. Poor families have declined to 62,384 representing 5.16 percent of the total number of families. The session also approved the 9th five-year NSEDP for 2021-2025, which set an average annual GDP growth target of at least 4 percent. By 2025, GDP per capita is targeted to touch US$2,880, and national income per capital to reach US$2,280.


Southern Vientiane Railway station project on track (Vientiane Times, 29.Mar.2021)

The Southern Vientiane railway station project in Thanaleng is progressing well despite having to run a new survey and prepare a new design when the government had urged the developer to move the construction site from the earlier planned area of 450- Year Road. The station located in Hadxaifong district is a part of the prestigious Laos-China Railway Project that links Boten in Luang Namtha province, north of Laos, which shares its border with Yunnan province of China, to Vientiane, the capital of Laos. This historic project is a symbol of cooperation between Laos and China. The construction works have been undertaken by the Laos-China Railway Company Limited. The company General Manager, Mr Xiao Qianwen, told Vientiane Times last week that they have followed the Lao government’s advice to move the project site of the Southern Vientiane railway station project from 450- Year Road to Thanaleng. This was done as there is plenty of state-owned land available for development there. The company conducted new surveys, prepared new designs, and kick started the constructions in 2020.
So far, the project is progressing as per schedule. The length of the railway, 409 km is the length measured from Boten-Vientiane Railway Station (Passenger station) and the 414 km length of the railway is the length from the Boten-Southern Vientiane Raillway Station in the initial de-sign (which was originally planned to be constructed). Track installations from Boten-Vientiane Railway Station will be completed between the end of May to June and ex-pected to conduct the quality acceptance of the project from June to September. The firm plans to invite the Lao and Chinese media for the trial run of the railway service. The company will submit its project achievement report to the Lao government before November 2 for approval and thereafter prepare for the official opening ceremony on December 2, 2021.


More funding for biodiversity, environmental protection (Vientiane Times, 30.Mar.2021)

The Environmental Protection Fund (EPF) will provide over 7.9 billion kip to strengthen biodiversity conservation and natural resource management activities in six target provinces. The 11 subprojects will take place in the provinces of Vientiane, Xayaboury, Huaphan, Luang Namtha and Attapeu, and in Vientiane, all of which have ample natural resources and capacity for environmental protection. The initiative will also focus on social impact management at historic tourist sites.
The projects will run for three years from 2021- 2023, focusing on protected areas and enhanced protection measures to preserve forested areas. They also aim to strengthen biodiversity conservation in district protected area management and provide support for communities in sustainable environmental management activities. The projects aim to improve and promote environmental protection by providing relevant data and information, raising public awareness, and providing education to citizens so that they recognise the importance of the environment in their daily lives. The initiative will also include public awareness raising about environmental protection at tourist attractions in Viengxay district, Huaphan province. The projects support the government’s policy on improved environmental management. The Environment Protection Fund provides funding to manage land, protect natural resources, preserve wildlife habitats, make critical capital improvements about conservation, and provide access to local people.


Govt attempts to keep national debt in check (Vientiane Times, 30.Mar.2021)
Despite budgetary tensions, since 2017 the government has paid off more than 11 trillion kip of the debts that it has accumulated over the past several years. Debt repayments have been made in the form of cash and through the triangle-debt-diversion disbursement initiative, which transferred the government’s debt burden from private companies to commercial banks. The 11-trillion-kip payment amounts to 90 percent of the total debt owed to companies that completely undertook the construction of various infrastructure projects.
Deputy Prime Minister and Minister of Planning and Investment , Dr Sonexay Siphandone, told the National Assembly last week the government would try to limit the number of new projects which did not guarantee a significant economic return. “The government will inspect and review projects to identify which ones we should continue with and which we should suspend,” he said. The government will continue to settle the debts owed to major creditors by converting debt into capital, which will involve granting concessions for the use of state land. Over the past five years, the government has attempted to shrink its debt burden by reducing the fiscal deficit and cutting spending on non essential projects that do not guarantee economic returns.


NA set to Approve 96 laws by 2025 (Vientiane Times, 31.Mar.2021)
Some 96 laws will be enacted and amended over the next five years as Laos moves closer to becoming a state governed by the rule of law. Thirty-eight of the laws are new and will be debated before being approved, while the other 58 are laws that will be amended in response to changes in the country’s development circumstances. Of the total 96 laws, 36 relate to the economy, 28 concern socio-cultural matters, and 23 are in the area of governance and justice, according to a report from the National Assembly unveiled recently.
During the inaugural session of the NA’s newly elected 9th legislature which took place from March 22- 26, members highlighted the need to further disseminate laws throughout the country to ensure that all communities understand them and join forces in curbing illegal activities. NA Secretary General Mrs Pingkham Lasasimma said the Assembly ’s Standing Committee will need to collaborate more closely with the sectors concerned to formulate the content of laws before they are submitted to the National Assembly for debate. One of the main problems in recent years has been that some of the laws that were enacted needed to be amended a few years later because some of the content did not reflect the reality of the nation’s circumstances. Over the past five years (2016-2020), the National Assembly has approved 90 laws (38 new laws and 52 amended laws), bringing the total number of laws in existence to 156. President of the Assembly ’ s Law Committee, Mr Chaleun Yiapaoher, said the law was an important instrument to adjust and regulate society, facilitate socio-economic development, and protect the rights and interests of ethnic people. Mr Chaleun called for all relevant sectors to play a more active role and shoulder more responsibility in studying the content of laws to ensure their quality and comprehensiveness in the years to come.


Australia assists with purchase of Covid-19 vaccine (Vientiane Times, 31.Mar.2021)
Australia will extend further assistance to Laos with regard to the purchase of Covid-19 vaccine and its transport, the Ministry of Foreign Affairs has said. The information was revealed following a telephone conversation on Monday between Minister of Foreign Affairs Saleumxay Kommasith and his Australian counterpart, Ms Marise Payne. Australia will also provide further technical assistance to help Laos prevent, control and address the virus outbreak. The two sides discussed their bilateral relations and cooperation in various fields, which are being jointly implemented, and reviewed the achievements of previous cooperation. “ Australia and the Lao PDR are committed to working together to recover from Covid-19 and implement the Mekong Australia Partnership,” Ms Payne wrote on her Facebook page. The ministers also discussed regional and international issues of common interest as well as the strengthening of cooperation through regional and international cooperation frameworks, especially the Asean, Mekong subregion and United Nations frameworks, according to the Lao ministry.
The ministers agreed to organise activities to celebrate the 70th anniversary of diplomatic ties next year. Mr Saleumxay , representing the Lao government and people, expressed gratitude to the government and people of Australia for the support and assistance extended to Laos over past years, especially the provision of official development assistance in the fields of education, human resource development, agriculture, health, and trade and investment.


China backs rural infrastructure development, poverty alleviation (Vientiane Times, 1.Apr.2021)
Laos and China have launched the first phase of a Chinese-aided rural infrastructure development and poverty alleviation project in Luang Prabang and Vientiane provinces. The project will initially be implemented in these two northern provinces and will provide clean water in 17 villages, build seven community hospitals, install electricity in 16 villages, and provide digital television for 30 villages. Implementation will take at least 18 months and be supported by an agreement between senior officials from the two countries. The preparations for project implementation were arranged by the Laos-China Cooperation Commission and the Chine s e project supervision teams. The Chinese aided project has eight components and was agreed to by President Xi Jinping during his state visit to Laos in 2017. The four main priorities of the project, described in short as “4X100”, comprise the installation of clean water systems in 100 villages, construction of 100 dispensaries or community hospitals , supply of electricity for households in 100 villages, and the installation of satellite digital television in 100 villages. To minimise difficulties in implementing the 400 projects all at once, it was decided to divide them into different phases, batches and focused targets. This will ensure the efficiency of project implementation in every province of Laos. The first projects will take place in the provinces of Luang Prabang and Vientiane. After the completion of this 18-month operation, the next batch of projects will be carried out in other provinces.


Govt, partners step up fight against trafficking in tourism (Vientiane Times, 1.Apr.2021)
Government officials and partners from international organisations are joining forces to combat trafficking and child sexual exploitation in the tourism industry. The United States, through the US Agency for International Development, the Ministry of Information, Culture and Tourism, and Winrock International are working to raise awareness of and prevent trafficking in persons, aiming to ensure that tourism is free from child sexual exploitation. A workshop on the topic took place in Vientiane yesterday, with a focus on strengthening awareness raising, and the identification, reporting and prevention of child sexual exploitation and trafficking among travel companies, hotels, guesthouses, restaurants, karaoke bars, and massage spas.
Deputy Minister of Information, Culture and Tourism Minister, Mr Savankhone Razmountry, said a lack of knowledge about human trafficking for sexual exploitation and child sexual abuse could expose tourism operators and service providers to the risks associated with human trafficking and the provision of services for exploitative tourism. The workshop was essential in giving participants a clear understanding of the harmful effects of human trafficking, he added. US Ambassador to Laos Dr Peter M. Haymond said enhancing cooperation and capacity among tourism stakeholders in prevention was key, given their crucial role. The United States is committed to supporting the Lao government to combat child sexual exploitation and trafficking in persons as part of the US-Laos comprehensive partnership. This year , the United States and Laos are celebrating the fifth anniversary of this partnership and Dr Haymond said he looked forward to more collaboration to ensure that Lao people are safe from human trafficking.


Improved digital information systems necessary for better healthcare (Vientiane Times, 1.Apr.2021)
Health authorities are being advised to improve information systems to increase opportunities for people to access real health information. The topic was addressed at a digital health convergence meeting co-chaired by the WHO Representative to Laos, Dr Mark Jacobs, and Director General of the Department of Planning and International Cooperation, Ministry of Health, Dr Founkham Rattanavong. Also present were senior ministry officials and invited guests. Speaking at the meeting, Deputy Minister of Health Associate Prof. Dr Phouthone Muongpak said “We have seen many benefits from investing in health information systems over the years, especially during the Covid-19 epidemic when we now have access to information from multiple parties to make informed decisions.” “Unfortunately, we are still not accessing some real health information because officials are not sufficiently well informed about health issues and the existing system has limitations and is out of date.” However, in parallel with the development system, District Health Information Software 2 is being used to develop other sector information systems and achieve public health objectives.” Unless the programming system is interconnected and users of development systems are consulted, healthcare workers find it difficult to access the information they need, especially concerning hospitals, Dr Phouthone said. The convergence workshop will go one step further in the strengthening of the digital health sector. Workshop participants analysed the current state of the digital health ecosystem in Laos and learnt more about the importance of digital health governance, policy, enterprise architecture frameworks, standardization and interoperability, capacity development, and programme management. Discussions helped to identify the gaps and overlaps, brought together stakeholders in deciding on a common vision and objectives, and determined the next steps to be taken. Participants will raise awareness and understanding with the aim of creating a unified approach to formulating strategies, health information, and action plans over the next five years.

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