Vientiane, Lao PDR, October 23, 2008
—IFC, a member of the World Bank Group, has committed to increasing investment and advisory programs in Lao PDR to support private enterprises, helping them thrive and create jobs, and to work closely with the government on strengthening key sectors that promote economic growth.
“In these challenging times, IFC is well-positioned to help local companies and try to limit the impact of the global economic crisis on the most vulnerable,” Lars Thunell, IFC Executive Vice President and CEO, said at the end of a two-day visit to Lao PDR.
Thunell’s visit to the Mekong region enabled him to hear directly from government and business leaders about their concerns. IFC has made selected investments in the tourism, general manufacturing, telecommunications and banking sectors. Going forward, IFC aims to increase its investments in areas that leverage the country’s comparative advantage in natural resources, including agribusiness and mining. Lao PDR also has great potential to develop renewable energy through hydropower, which is in line with the World Bank Group’s strategy to help mitigate climate change by accelerating investments in renewable energy globally by 20 percent each year. IFC also plans to support the efforts of the Lao government to privatize selected state-owned enterprises.
Thunell emphasized the importance of continuing to work with donors and partners to provide high-level advisory services to attract investors, better support private enterprises, as well as work with the government on improving the business environment. IFC has supported recent government reforms that have contributed significantly to economic growth and more investments in the country. These include the laws on enterprises and commercial banks.
Together with the World Bank, IFC is advising the government on preparing a unified investment promotion law and a new minerals law, both of which reflect the government’s desire to attract investment by improving the business environment.
In the banking sector, IFC is helping the government develop a regulatory framework that will enable borrowers to use moveable and intangible assets such as equipment, vehicles, inventory, and accounts receivable as collateral. This should increase much-needed financing for small and medium enterprises.
Another joint initiative between IFC and the government, the Lao Business Forum, is helping improve the business environment by building trust and collaboration between the private sector and government.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments worldwide totaled $16.2 billion in fiscal 2008, a 34% increase over the previous year. For more information, visit
www.ifc.org
.
