2011年-世界发展银行全球_Lao_PDR_-_Investment_Climate_Assessment___Policies_to_Promote_Growth_in_the_Non-Resource_Sectors_68页_4mb

Lao PDR Investment Climate Assessment: Policies to Promote Growth in the Non-Resource Sectors (2011)

Core Content

This report presents the findings of the Second Lao PDR Investment Climate Assessment, focusing on the challenges and opportunities for non-resource sector firms. It is based on a national survey conducted in late 2009 and interviews with policymakers and practitioners, and compares Lao PDR's situation with over 100 developing countries.

Main Views

• Economic Growth and Development: Lao PDR has transitioned from a low-income to a middle-income country due to rapid economic growth, primarily driven by the natural resources sector (especially hydropower and mining). However, this growth is not sustainable in the long term, as it poses risks to the economy's stability and inclusiveness.

• Non-Resource Sector Importance: The non-resource sectors are expected to contribute more than half of real GDP growth and 75% of total GDP in the medium term. These sectors are more stable and provide long-term employment, making them essential for inclusive growth.

• Productivity and Competitiveness: Despite low labor costs, Lao PDR's labor productivity is lower than in neighboring countries and countries with similar income levels. Exporters, especially in the garment, furniture, and wood sectors, are less productive than non-exporters, which is attributed to the nature of their labor-intensive and low-skilled production processes.

• Key Constraints: The main constraints for business growth in Lao PDR are taxation, access to finance, and inadequate skills. Taxation is the most cited obstacle, with 30% of firms identifying it as a major constraint. Access to finance is also a significant issue, with only 19% of firms having loans, and skills shortages are particularly problematic for larger firms.

Key Information

1. Economic Context

• Lao PDR's economy has grown at an average rate of 6.5% annually between 1990 and 2009, with per capita income more than doubling.
• The country moved into the middle-income category in 2010, according to the World Bank Atlas Classification.
• Poverty headcount decreased from 46% in 1992–1993 to 28% in 2007–2008.

2. Sectoral Performance

• Natural Resources: Dominates exports and GDP growth, with mining and hydropower contributing significantly. Copper exports alone account for over 50% of total exports.
• Non-Resource Sectors: Expected to drive future growth, especially in services and manufacturing. However, they are still underdeveloped and face several challenges.

3. Investment Climate Constraints

• Taxation: The tax regime is seen as a major constraint. Small and medium enterprises (SMEs) spend more time dealing with tax authorities and report higher administrative burdens.
• Access to Finance: Only 19% of firms have loans, and most rely on private financing. Collateral requirements are high, and alternative financing sources are limited.
• Skills: A shortage of skilled labor is a critical issue, especially in the service sector. Training programs are insufficient, and many firms do not offer staff training.

4. Regional Comparisons

• Lao PDR's tax rates are similar to comparator countries, but firms report higher obstacles in tax administration.
• The share of firms identifying electricity as a constraint is lower than in many comparator countries.
• Lao PDR's trade environment has improved but still lags behind its neighbors in several aspects.

5. Corruption and Informality

• Corruption is relatively low in perception, but many firms report paying bribes to obtain licenses and permits.
• Informality is more common in trade, services, and construction industries, with small firms more likely to be informal.

6. Gender and Entrepreneurship

• Female-owned businesses are more common in Lao PDR but tend to be smaller and less likely to export.
• Female entrepreneurs are more likely to cite taxation and access to finance as their main constraints.

Key Recommendations

Taxation

• Implement a flat patent fee system for micro-enterprises.
• Introduce a simplified turnover-based tax for small firms.
• Revise and enforce accounting standards for SMEs.
• Consider abolishing minimum taxes to support SMEs.
• Reform the tax law and regulations to clarify administrative procedures and responsibilities.

Skills

• Improve systems for skills information and forecasting.
• Strengthen technical and vocational education and training (TVET).
• Expand private sector partnerships in education.
• Introduce contracting and cost-sharing schemes for specific training.
• Develop a regular labor force monitoring system.
• Enhance basic education to meet workforce demands.

Access to Finance

• Promote financial literacy and transparency among borrowers.
• Encourage fair competition in the banking sector.
• Develop an efficient registration system for movable collateral.
• Improve the credit information registry for better risk management.
• Increase availability of long-term funding for investment purposes.

Conclusion

To ensure sustainable and inclusive growth, Lao PDR needs to focus on improving the investment climate in the non-resource sectors. This includes addressing taxation, access to finance, and skills shortages. Effective implementation of reforms is crucial to enhance the competitiveness of the economy and support private sector development.