Champassak province expects rise in investment

From Vientiane Times:

Champassak province expects the value of its local and foreign investment projects launched this year to jump more than 500 billion kip (US$63.3 million) on last fiscal year.

The provincial Planning and Investment Department on Monday reported it will target 120 investment projects worth 3,203 billion kip in the 2013-14 fiscal year.

Local investment is predicted to account for 46 projects worth 1,217 billion kip, while the remaining 74 projects worth 1,986 billion kip will be funded by foreign entities.

To meet target figures, provincial officials are taking measures to attract more investment, including improving regulation, administration and management and boosting advertising.

Last fiscal year the province approved 49 investment projects, worth 2,689 billion kip.

Sixteen of the projects were funded locally, at a cost of 903 billion kip, while foreign investment accounted for 23 projects and 1,786 billion kip…more

Officials prepare for asset declaration

From Vientiane Times:

Officials are compiling documents needed for the declaration of assets by state leaders, employees, state enterprise employees and their close relatives, under a new regulation set to come into force in January.

The government issued the Prime Ministerial Decree on Asset Declaration on June 4 – the first-ever such regulation – which will come into effect on January 1, 2014, as a measure to stem corruption.

The Government Inspection Authority is finalising the asset declaration form and instruction manual – the two documents required for the declarations, an official from the authority said.

The two documents will be submitted to the government for recommendations before being put into use. Dissemination of the two documents is set to be conducted among central and local bodies.

The debts and incomes of the targeted groups will also be declared under the decree, which requires asset declarations to be made every two years.

High-ranking leaders, administrative-level officials and all state employees in the Party, government, Lao Front for National Construction and mass organisations will be required to declare their assets, according to the decree’s Article 5…more

Market snapshot: 12 November

The LSX Composite Index closed Tuesday at 1,288.02, up 1.02 or 0.08% from Monday. Trading volume was 803,132 shares, worth 6.466 billion kip. (source: Lao Securities Exchange)

Market snapshot: 11 November

The LSX Composite Index closed Monday at 1,287.00, down 18.31 or 1.40% from Friday. Trading volume was 168,250 shares, worth 1.070 billion kip. (source: Lao Securities Exchange)

Insurance firm provides US$4million compensation after plane crash

From Vientiane Times:

Lao-Viet Insurance Company (LVI) on Friday gave US$4 million to Lao Airlines as compensation after an ATR 72-600 belonging to the airline crashed into the Mekong on October 16 near Pakse International Airport.

This was the first payment made with respect to the loss of the aircraft and more will be made at a later date, though the total amount is not yet kno wn.

LVI Director General Pham Duc Hau handed over the US$4 million to Lao Airlines President Dr Somphone Duangdara. He promised that LVI, which is an associate of the London-based insurance company Willis, will award compensation in line with international standards.

He said LVI, a subsidiary of the Banque pour le Commerce Exterieur Lao, a leading Lao bank, will pay full compensation in accordance with the insurance policy signed with Lao Airlines.

But Mr Hau was unable to give details of the extra compensation for the 49 people who lost their lives in the crash. An initial US$5,000 was awarded to the families of each of the victims to cover funeral expenses…more

Market snapshot: 8 November

The LSX Composite Index closed Friday at 1,305.31, unchanged from Thursday. Trading volume was 14,100 shares, worth 113.0 million kip. (source: Lao Securities Exchange)

Baht bonds to close budget gaps

From Vientiane Times:

The Lao government is set to issue more Thai baht-denominated bonds worth 3 billion baht or US$100 million to fill the revenue shortfall from last fiscal year’s budget.

The Ministry of Finance will manage the bond issuance, which comes after an oversubscription to the government’s debut 1.5 billion baht three-year bond issuances in June.

Ministry Office Head, Mr Bounzoum Sisavath, said a committee would be set up to channel the funds raised from the bonds into priority infrastructure projects in health and education.

He said the measure would help to balance the budget deficit.

At 19.5 trillion kip, Laos had reached just 78.38 percent of its annual revenue target by August, a month short of the end of the 2012-13 fiscal year. The government was forced to freeze employees’ salaries and cut allowances to top-ranking officials in the face of budget constraints.

Mr Bounzoum said the funds from bond issuance could not be used to pay salaries. Rather, the cash injection will be used to ensure that development projects continue as planned despite the weak economic circumstances…more