BY MR. SENPHANOMCHONE INTHASANE, DPC, MOIC AUGUST 19TH, 2015 The project Review Meeting the implementation Progress and annual Work Plan BY MR. SENPHANOMCHONE INTHASANE, DPC, MOIC AUGUST 19TH, 2015

Potential intervention areas outlines Implementation Progress Key Outputs Challenges Future Plan Annual work plan Potential intervention areas

Key outputs – POLICY COORDINATION AND AfT Governance Trade and PSD Roadmap Well - functioning policy dialogue platform Good progress in all three pillars and intervention areas Gap exists in business enabling environment and support to SME productivity enhancement TA Governance Framework Good progress in shifting to Program Based Approach Well functioning TA governance structure under PRC and PEC Majority of TA Operates under single structure More than 15 agencies (government, private sector, int’l development agencies) are T4D Implementing Agencies

Key outputs – Program implementation support Completed draft sector development plan Completed Ministry-wide Capacity Need Assessment Completed review of existing AfT governance structure and adopted revised ToR for the SWG and PEC/PRC Satisfactory performance of financial management and procurement. Unqualified external auditors’ opinion

Key outputs – DTIS CHALLENGE facility Strong demand for accessing the facility to support priorities of the Roadmap 6 Proposals at different stages of the implementation: An E-Certificate of Origin System; A MOIC ICT Strategy Trade and Gender Study Assessment of Barriers to free movement of goods Implementing Regulations for the Industrial Processing Law Legislation on Control of Toxic Chemicals The Facility is emerging as a responsive programmatic financing tool

Key CHALLENGES Small number of projects still operating outside sector governance structure (PEC) Closer collaboration between projects, especially in areas of information dissemination, economic integration is required Need to reach out to other SWGs, especially Macro WG and agribusiness sub-WG Low public awareness among stakeholders about differences between government executed and bilateral executed implementation modalities

Financial Status of TDF II as of 30-Jul-15 PAD Committed Available Fund Commitment Original Budget rate A. Trade Facilitation,Trade Policy and Regulations 5,600,000 3,102,121.71 2,497,878.29 55% A1 Trade Facilitation Support 1,300,000 838,003.29 461,996.71 64% A2 Non Tariff Measures review and rationalization 342,308.55 957,691.45 26% A4 Trade in goods 1,185,366.03 114,633.97 91% A3 Trade in services 1,700,000 736,443.84 963,556.16 43% B. Diversification and Competitiveness 4,100,000 3,395,203.01 704,796.99 83% B1. Business Assistance Unit (BAU) 2,500,000 1,625,046.72 874,953.28 65% B2. Labour standards and manufacturing productivity 1,600,000 1,770,156.29 (170,156.29) 111% C. Mainstreaming Aid-for-Trade 4,300,000 3,080,094.17 1,219,905.83 72% C1. National Implementation Unit, and Trade and Private Sector Development Working Group 1,918,957.82 581,042.18 77% C2. DTIS action matrix/roadmap challenge facility 1,000,000 639,263.36 360,736.64 C3. Research and policy analysis 800,000 521,872.99 278,127.01 Total 14,000,000 9,577,418.90 4,422,581.10 68% Level of commitments is satisfactory. As of July 30, 2015, 68% of total fund has been committed. All major TA contracts have been finalized except TA to developing the Service Investment Portal;

Highlight of Work plans Conduct 01PRC, 01 PEC and 01 TPSWG Meeting Prepare inputs for the upcoming RTIM Finalize sector development plan Complete value chains studies for 4 key agro-products Review policy interventions in agribusiness (rice), and energy (fuel) Complete communication strategy, including detailed guidelines for donor visibility Launch new T4D website

Highlight of Work plans Start piloting trade brief, roadshow as communication tool Deliver the following training to IAs: Finance and procurement Proposal development Monitoring and evaluation Project cycle management TDF II & EIF Tier II – Provide necessary project implementation support, including financial and procurement management and preparation for possible additional financing to TDF II

Possible future intervention areas Leverage WTO and AEC as drivers to improve transparency, predictability of commercial legal framework to reduce business regulatory compliance cost Streamlining business startup process Strengthen private sector policy advocacy capacity at the center and selected major provincial capitals – strengthening LBF and replicating it in selected provinces Review feasibility study for developing logistics park in Vientiane Support implementation of Competition Law and Consumer Protection Law Contract enforcement and dispute resolution – support to existing alternative dispute resolution mechanism MOIC ICT Strategy implementation

Thank you for your attention!