Trade Mainstreaming in Lao PDR

1. Trade Mainstreaming in Lao PDR Mr. Phouvieng phongsa Niu director National implementation unit FTPD, Ministry of Industry and Commerce Lao PDr

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

3. 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)

4. 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 (2007-2010) - established our National Integrated Governance Structure (NIFGS) • Trade Development Facility (TDF, 2008-2012) – Multi-Donor Trust Funds providing resources to implement Action Matrix activities through the NIFGS

5. t National IF Governance Structure

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

7. Task Force example: Trade Facilitation

8. IF Task Force Mr. PhengsanguanChoultamany DG of DPCD GSEU Focal Point Mr. KhampanhSengthongkham DDG of DPCD Team Leader Mr. SisangkhomeKhotyotha Director Assistant Mr. KikeoVolavong Officer Assistant Mr. SomvixayVongthilath Officer Coordinator Ms. Pinphakone Xayavong Project Coordinator Example GSEU: DPCP

9. 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

10. The NIU

11. 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

12. Key elements of the DTIS update • Move from study to strategy. Key in implementing the National Socio-Economic Development Plan (NSEDP 7, 2011-1015) • 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

13. 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.

14. 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

15. Thank you