Prime Minister Sonexay Siphandone signed a seven-page order on 14 July to ensure that foreign exchange earned through exports and foreign investments, enters the country through its banking system.

According to Xinhua, this latest regulation during a time of soaring inflation and mounting public debt, is an effort to increase the supply of foreign currencies in the country, leading to de-dollarization, and more demand for the Lao kip.

Currently, a little over 30 percent of export receipts in Laos enter through the country’s banking system, which doesn’t help in reinstating the country’s depleting foreign currency reserves due to the overall imbalance of payment in the country.

Hence the government has ordered the Bank of the Lao PDR (BOL), to improve its electronic payment system for financial transactions and to regulate the use of foreign currencies in special economic zones, where payment of services are often made in stronger currencies like the Thai Baht.

The order also instructed the Ministry of Finance to collect taxes and revenues from businesses and exporters in foreign currencies if they generate income in currencies other than Lao Kip.

Additionally, the Ministry of Industry and Commerce was asked to develop an electronic system that enabled the sharing of data with BOL and other sectors to regulate import and export activities.

Moreover, the order also instructed importers and exporters to hold specific bank accounts in Laos to facilitate their financial transactions and also register with the Ministry of Industry and Commerce to transfer export revenue via the banking system and into specific accounts.

Exporters who need to park their foreign currency overseas to repay loans in other countries should also seek prior permission from the BOL.

Relevant sectors in the country were also asked to regulate and monitor the inflow of foreign currencies earned from foreign investments and provide regular updates to the central bank.

Government officials were informed to keep supervising that the payment of goods, services, salaries of local employees, etc. was made in Lao Kip. Using local currency was also a mandate for businesses that sell goods online. Only foreign experts and expat employees can continue to receive their salaries in foreign currencies, says the notice.

source: https://laotiantimes.com/2023/07/19/lao-pm-calls-for-de-dollarisation-and-further-regulation-of-foreign-currencies/

The Minister of Public Works and Transport announced his plan to increase state budgets for road safety work by setting up a fund amid the increasing number of road accidents in Laos.

Mr. Ngampasong Muongmany, Minister of Public Works and Transport, recently informed the National Assembly that the ministry spends between LAK 17 and 18 billion (over USD 800) a year, or 2.8% of the national budget, on road safety work.

In Laos, 80% of the state budget of the Ministry of Public Works and Transport is allocated to all transport-related activities, such as the repair of national and local roads, new road construction, and the fund for the provincial City Office for Management and Service.

According to the minister, the country loses approximately 1,000 people annually to road accidents, and in the past five years, road accidents have claimed the lives of 5,000 individuals. He added that the condition of roads across the country needs to be developed and consistently maintained to prevent many of these accidents.

To this effect, the Ministry and National Road Safety Committee (NRSC) discussed establishing a fund for the National Road Safety campaign to combat speeding and drunk driving-related traffic accidents.

A Vientiane Times report says that the National Road Fund will also closely monitor the repair and maintenance of roads in the country and it will be financed by the fees charged to vehicles entering and exiting the four bridges on the Lao-Thai border across the Mekong River, from fines charged to motorists, and various other sources.

Laos recorded over 900 deaths in road accidents in 2022; the leading cause of death being drunk driving and speeding, while in June this year, 55 people were killed in road accidents, according to the Traffic Police Department at the Ministry of Public Security.

source: https://laotiantimes.com/2023/07/18/ministry-of-transport-suggests-setting-up-fund-to-maintain-roads-prevent-accidents/

The Minister of Health put forward a new draft law on public health to the National Assembly on Tuesday which is aimed at improving the management and monitoring of healthcare services.

Paxaxon Newspaper reports that the Minister of Health, Dr. Bounfeng Phommalaysith, proposed the new draft law for constituents in the country to comment on and discuss.

The minister informed that the new public health draft law defines the principles, regulations, and procedures for managing and overseeing public health work in Laos to make it accessible and affordable for all citizens.

According to Dr. Bounfeng, the public health sector has often faced difficulties in managing its operations due to a lack of infrastructure, staff, and other resources. The revised law looks at not only protecting the interests of those seeking medical care but also that of healthcare professionals, with the goal of modernizing and improving services.

In its strategy until 2030, Laos’s Ministry of Health intends to reform the country’s public health sector by implementing strict levels of compliance and high-quality service throughout the country. It also provides instructions on how recent graduates in the field of medicine can obtain their licenses before starting their practice.

Mr. Bounlome Keobouahome, a constituent of District 7 in the province of Xayaboury, said earlier this month that 66.6% of 150 patients at Hahosot Hospital, Setthathirath Hospital, and Mittaphab Hospital were dissatisfied with the quality of their medical care, according to a survey.

source: https://laotiantimes.com/2023/07/12/lao-health-minister-presents-new-draft-law-on-public-health-to-na/

Concrete and asphalt roads were constructed on Don Deth and Don Khone islands in Champasack province, which was Phase II of an infrastructure development project to improve tourism in the area.

With funding from the Asian Development Bank (ADB), a 2,800-meter concrete road was built from National Road 13 South to the boat dock in Nakasang village, and a 15 kilometers long and 2.9 meters wide asphalt road was constructed to link Don Deth and Don Khone islands.

Don Deth and Don Khone islands are located on the Mekong River in Khong District in Champasack and were once accessible only by motorcycles and bicycles despite long being popular with tourists visiting the Siphandon area, aka the 4,000 Islands.

Popular for their quaint countryside and laid-back atmosphere, these two islands also saw the construction of streetlights and an embankment to prevent flooding.

The new roads and facilities will provide easier access for tourists to visit the islands, which will in turn benefit local businesses by increasing tourism and creating jobs. Better roads will also improve safety by reducing congestion and making it easier for emergency services to access the area.

Before the COVID-19 pandemic hit three years ago, Vientiane Times reported that Champasack province attracted at least 700,000 visitors each year. However, the province only recorded 191,000 visitors last year. Tourism officials in Champasack province are optimistic that the new roads and other infrastructure projects will boost tourism in the region.

Local authorities are confident that the province has a lot to offer tourists, including its natural beauty, cultural attractions, and easygoing atmosphere. Some popular sites include the UNESCO heritage site of Vat Phou Temple and the natural wonders of Khonphapheng, Tad Fan, and Tad Yeuang waterfalls.

In addition to the new roads on Don Deth and Don Khone islands, many other tourist areas are now being developed in Laos, such as an access road at the Nam Ngum 1 dam, Kaeng Yui waterfall, and Nam Song River in Vang Vieng.

While these projects benefit local communities, they can also cause increased traffic congestion and pollution, which may negatively affect the ecosystem and the natural beauty of the areas. These effects, however, can be reduced with good planning and management on behalf of authorities while setting up tourism facilities within the country.

source: https://laotiantimes.com/2023/07/14/don-deth-and-don-khone-islands-in-champasack-get-new-roads-to-boost-tourism/