MR. PHOUVIENG PHONGSA NIU DIRECTOR NATIONAL IMPLEMENTATION UNIT FTPD, MINISTRY OF INDUSTRY AND COMMERCE LAO PDR Trade Mainstreaming in Lao PDR

Overview I. Historical context II. Progress in mainstreaming to date III. Future aims and plans 2

I. Historical Context Economic reform in Lao PDR – new economic mechanism Accession to WTO – next working group Sept 2010 Deepening membership of ASEAN Other bilateral agreements Gradual progression in mainstreaming  Link Trade Development Agenda to National Development Agenda (NSEDP)  Trade and Private Sector Development Sub-Group (part of Round Table process) 3

II: Progress in mainstreaming to date How we got to where we are: IF process to date  DTIS & Action Matrix (2006) - consolidated analysis of various sectors & demonstrated reach of trade in other line ministries and the private sector  IF Window II project ( ) - established our National Integrated Governance Structure (NIFGS)  Trade Development Facility (TDF, ) – Multi- Donor Trust Funds providing resources to implement Action Matrix activities through the NIFGS 4

t National IF Governance Structure 5

6 National Committee for Economic Integration GOL National Policy Formulation National Committee for Economic Integration GOL National Policy Formulation Lao IF Secretariat GOL Supervision and Coordination Lao IF Secretariat GOL Supervision and Coordination Trade Facilitation Task Force SPS Task Force Export Competitiveness and Bus. Environment Task Force Trade Capacity Building Task Force Trade Executive Committee Joint GOL and Donor Coordination and supervision Trade Executive Committee Joint GOL and Donor Coordination and supervision National Implementation Unit (ODA Division) Administration and Coordination National Implementation Unit (ODA Division) Administration and Coordination Trade Facilitation GSEU - DIMEX SPS GSEU - MAFExport Competitiveness GSEU – DPCD (DPTP) Trade Capacity Building GSEU – ERIT & WTO Implementing Agencies GSEUs SECO – UN Trade Cluster Trade Development Facility USAID BTA/WTO EIF Tier 1

Task Force example: Trade Facilitation Trade Facilitation Lead Agency:Import‐Export Department, MOIC Members: − Customs Department, MOF − Foreign Trade Policy Department, MOIC − Department of Intellectual, Standard and Methodology, National Authority of Science − Consul Department, Ministry of Foreign Affairs − Economics Department, Ministry of Foreign Affairs − Planning Department, Ministry of Agriculture and Forestry − Immigration Department, Ministry of Public Security − Transport Department, Ministry of Public Work and Transport − Industry Department, MOIC

Example GSEU: DPCP 8 IF Task Force Mr. Phengsanguan Choultamany DG of DPCD IF Task Force Mr. Phengsanguan Choultamany DG of DPCD GSEU Focal Point Mr. Khampanh Sengthongkham DDG of DPCD GSEU Focal Point Mr. Khampanh Sengthongkham DDG of DPCD Team Leader Mr. Sisangkhome Khotyotha Director Team Leader Mr. Sisangkhome Khotyotha Director Assistant Mr. Kikeo Volavong Officer Assistant Mr. Kikeo Volavong Officer Assistant Mr. Somvixay Vongthilath Officer Assistant Mr. Somvixay Vongthilath Officer Coordinator Ms. Pinphakone Xayavong Project Coordinator Coordinator Ms. Pinphakone Xayavong Project Coordinator

The NIU Part of the newly formed ODA Division in the Foreign Trade Policy Department Led by Director level, reporting to the DG and Vice- Minister (IF FP) Growth in team over the last two years Comprised of a mix of Government officers / officials and contracted Lao staff Roles: Primarily planning, coordination, finance and procurement Decentralisation to line ministries / departments is key for project implementation 9

The NIU 10

III: Future Aims and Plans EIF Tier 1 – further strengthening of NIU, update of DTIS Leveraging additional funds  Japanese finance to scale up an existing project  German co-funding SECO UN Cluster programme New way of working with UN Agencies DTIS  Laos Trade Integration Strategy 11

Key elements of the DTIS update Move from study to strategy. Key in implementing the National Socio-Economic Development Plan (NSEDP 7, ) Nationally owned, led and independently financed (EIF) High level of coordination with key Agencies & stakeholders Integration of Trade and Private Sector issues Towards a Trade SWAp 12

Some Challenges We are still learning Constraints in terms of number of senior government officials available to monitor extra staff & projects Inter-Ministerial coordination is never going to be easy Aligning with DP programming objectives, reporting and implementation requirements. 13

Key Success Factors Political will and drive Driven by National Planning Documents Formal structures established to enable cross departmental and inter-ministerial coordination to take place Finance and activities within control of the Government which increases ownership and cooperation Increased alignment of DP activities (esp. EIF, TDF, Multi-Donor Trust Fund & Trade Executive Committee. Able to learn from the progress of others 14

Thank you 15