usaid luna ii

USAID LUNA II Lao PDR–U.S. International and ASEAN

Integration Project

Annual Report

April 2014 – March 2015

April 2015

This publication was produced by Nathan Associates Inc. for review by the United States Agency for

International Development Regional Development Mission for Asia (USAID/RDMA).

DISCLAIMER

This document is made possible by the support of the American people through the United States Agency for

International Development (USAID). Its contents are the sole responsibility of the author or authors and do not

necessarily reflect the views of USAID or the United States government.

USAID LUNA II

Lao PDR–U.S. International and

ASEAN Integration Project Annual Report

April 2014 – March 2015

Submitted: April 30, 2015

Contract No. AID-OAA-I-12-00039, Task Order AID-486-TO-14-00003

Contract/Agreement Period: 24 March 2014 through 23 September 2018

COR: Sait Mboob

Submitted by

Ashok Menon, Chief of Party

Nathan Associates Inc.

Ban Naxay, Unit 41, Building 429, 5th Floor

Saysettha District, Vientiane, Lao PDR

Tel: +856 20 760 24886

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Contents Abbreviations and Acronyms iii

Executive Summary v

1 Activity/Mechanism Overview 1

Overview of Project Objectives 2

Overview of USAID LUNA II Project Counterparts 2

Overview of USAID LUNA II Institutional Arrangements 2

2 Activity Implementation Progress 4

Highlights of Key Deliverables 5

Project Management Activities 6

World Trade Organization (WTO Compliance) Activities 10

ASEAN Economic Community (AEC) Activities 23

U.S.–Lao PDR Bilateral Trade Agreement Activities 26

Activities for Policies, Laws and Regulations for a Competitive Economy 27

Trade Capacity Building Activities 27

3 Monitoring & Evaluation Update 32

4 Financial and LOE Expenditures 36

Appendix A: M&E: Progress on Indicators A-1

Appendix B: Capacity Building Events B-1

Appendix C: Level of Effort C-1

ILLUSTRATIONS

Figures

Figure 1-1. Framework for USAID LUNA II Project (2014-2018) 4

Figure 2-1. USAID LUNA II Project Organization 7

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Tables

Table 2.1 Workshops and Trainings Supported by USAID LUNA II 28

Table 3-1 Workshops and Training Events Supported by USAID LUNA II in 2014 32

Table 3-2 Technical Meetings Supported by USAID LUNA II in 2014 (Project to Date) 2

Abbreviations and Acronyms

ACTI ASEAN Connectivity through Trade and Investment project

ADB Asian Development Bank

AEC ASEAN Economic Community

AMCHAM American Chamber of Commerce

ANZBA Australia New Zealand Business Association

ASEAN Association of Southeast Asian Nations

ASW ASEAN Single Window

AWP Annual work plan

BizCLIR Business Climate, Legal and Institutional Reform

BTA U.S.-Lao PDR Bilateral Trade Agreement

COP Chief of Party

COR Contracting Officer’s Representative

DIMEX Department for Exports and Imports (MOIC)

DIP Department of Intellectual Property (MOST)

DIT Department of Information Technology (MOST)

DPC Department for Planning and Cooperation (MOIC)

DSM Department of Standardization and Metrology (MST)

DTIS Diagnostic trade integration studies

EDC Enterprise Development Consultants

ECCIL European Chamber of Commerce and Industry in Lao PDR

EIF Enhanced Integrated framework

EMDAP Emerging Market Development Advisers Program

FLP Faculty of Law and Political Science, National University of Laos

FTPD Foreign Trade Policy Department (MOIC)

GATS General Agreement on Trade in Services (WTO)

GoL Government of Lao PDR

GSP General System of Preferences

ICPMS International Cooperation and Project Management Secretariat (National

Assembly)

ICT Information and communication technologies

ILAC International Laboratory Accreditation Cooperation

IP Intellectual property

IPR Intellectual property rights

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IPRA Intellectual property rights assistance

LBA Lao Bar Association

LNAB Lao National Accreditation Bureau

LNCCI Lao National Chamber of Commerce and Industry

LNSW Lao National Single Window

LOPP Life of Project Plan

LUNA Lao PDR-U.S. International and ASEAN Integration Project

USAID LUNA II Lao PDR-U.S. International and ASEAN Integration Project II

MOF Ministry of Finance

MOIC Ministry of Industry and Commerce

MOJ Ministry of Justice

MOST Ministry of Science and Technology

MOU Memorandum of understanding

MPI Ministry of Planning and Investment

MPT Ministry of Posts, Telecommunications and Communications

MST Ministry of Science and Technology

NA National Assembly

NIU National Implementation Unit

NTB Non-tariff barriers to trade

NUOL National University of Laos

PEC Program Executive Committee

PMO Prime Minister’s Office

PRC Project Review Committee

PSC Project Steering Committee

SEA CLIR Southeast Asia Commercial Law and Institutional Reform

SELNA Support to an Effective Lao National Assembly projects

SPC Supreme People’s Court

TATF Asia-Pacific Economic Cooperation Technical Assistance and Training

Facility

TBT Technical barriers to trade

TDF2 Trade Development Facility 2

TRIPS WTO Trade-Related Intellectual Property Rights Agreement

UNDP UN Development Program

UNIDO UN Industrial Development Organization

UPOV Union for the Protection of New Varieties of Plants

USAID/RDMA USAID Regional Development Mission for Asia

USAID/W USAID Washington

USTR United States Trade Representative

WTO World Trade Organization

Executive Summary

The first year of the United States International Agency for International Development’s

(USAID) Lao PDR–U.S. International and ASEAN Integration (USAID LUNA II) Project helped

Lao PDR to meet World Trade Organization (WTO), ASEAN and US-Lao BTA commitments;

improve economic transparency through publishing legislation on the E-Gazette; and enhance

economic governance through increased awareness of the policy making process and improved

public-private sector dialogue. This project started quickly, met all key contract deliverables and

quickly developed a work plan and began implementing technical assistance, working in all of

Lao PDR’s 17 provinces. This Annual Report provides an overview of activities; more specific

details on the various activities can be found in the quarterly reports.

PROJECT ADMINISTRATION USAID LUNA II started-up quickly and efficiently through the timely hiring of project staff and

setting up office a fully operational office. Most importantly, USAID LUNA II was able to pick-

up where its predecessor left off in delivering technical assistance to counterparts. The project

start-up team met all contractually agreed upon dates for deliverables and began implementation

of a few key activities while the work plan was going through the approval process. USAID

LUNA II has an approved Communications Plan and Project Monitoring and Evaluation Plan and

submitted a revised project baseline assessment. A Business Perceptions Survey (BPS) with

LNCCI was also started during the current year.

MILESTONES Lao PDR’s accession to the WTO was accompanied by commitments to meet specific deadlines.

With support from USAID LUNA II, the following commitments were met:

Lao PDR met their WTO trading rights commitments by the February 2015 deadline.

USAID LUNA II developed an issue brief outlining Lao PDR’s compliance with trading

rights.

Passage of a New Law on Standards in November 2014 met end-of-2014 goal for WTO

TBT compliance. USAID LUNA II is continuing to assist MOST to ensure the

implementation is WTO compliant.

The Electronic Official Gazette was fully operational by the end of 2014 with 248 pieces

of legislation published.

LAWS AND REGULATIONS SUPPORTED BY USAID LUNA II USAID LUNA II worked closely with government counterparts to make progress on the drafting

of laws and implementing regulations required for WTO membership and AEC. They included:

Drafting a law for safeguards and producing a work plan for the adoption of safeguards

legislation with MOIC/FTPD.

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Drafting regulations for registration of Digital Signature Certification Providers with

MOST/DIT, which will help enable secure e-transactions in Lao PDR.

Drafting IP Enforcement Guidelines for Copyrights and begin drafts for Trademarks and

Patents with the SPC.

Developing and finalizing a National Code of Practice for Technical Regulations with

MOST/DSM.

Supporting the development of a draft government decree to establish and implement the

national single window with Customs.

HIGHLIGHTS OF PROJECT AREAS OF WORK This year USAID LUNA II worked across varied technical areas related to trade integration and

economic governance. This ranged from continuing work on meeting WTO commitments to

implementing the Law on Making Legislation to working on e-transactions and e-commerce.

Progress was made across many of these areas, including in the operation of the e-Gazette, on

intellectual property rights and on technical barriers to trade (TBT) and standards.

Electronic Official Gazette

The MOJ and USAID LUNA II collaborated to raise awareness and increase the use of the e-

Gazette among national government officials, the private sector and provincial officials. At the

end of 2014, 248 pieces of national legislation had been submitted to the e-Gazette. This included

legislation such as the draft law on Violence Against Women, which was posted for public

comment. USAID LUNA II’s main counterpart, MOIC submitted 56 pieces of legislation, the

most of any government body. Since June 2014, visits to the website have increased nearly 300%

and monthly visits have notably spiked after USAID LUNA II’s e-gazette workshops with the

MOJ. The most frequent international visitors are Thailand, Vietnam and the United States. April

1, 2015 witnessed the posting of the first piece of provincial legislation. This occurred as a result

of an e-Gazette workshop with provincial officials facilitated by USAID LUNA II and the MOJ.

Intellectual Property Rights

In June 2014, USAID LUNA II sent a delegation of three officials from MOST to Washington

D.C. to attend a U.S. Patent and Trademark Organization workshop on IP Administration for

ASEAN members. The project also organized a study tour for officials from the SPC, MOST and

Customs to the Philippines to learn about IP adjudication. This trip was viewed as a success,

increasing the level IP knowledge of participants, discussing partnership and harmonization

opportunities with the Philippines and developing an enthusiastic desire to institute a National IP

Committee and to complete the SPC’s enforcement guidelines. USAID LUNA II is excited about

the issuing of Lao PDR’s first patents in April of 2015, which will mark a significant milestone

for the country.

TBT/Standards Compliance

This year a vast amount of time and expertise was given towards implementing the WTO

Technical Barriers to Trade (TBT) Agreement, on standards and on improving the national

quality infrastructure (NQI). In addition to developing the National Code of Practice for

Technical Regulations the project supported consultations between MOST and the National

Assembly to discuss the Law on Standards and took steps to try to improve its level of WTO

compliance. The project also coordinated with the USAID/ACTI project and sent two officials

from MOST to a standards workshop in Myanmar. Trainings were conducted with the TBT

enquiry point and they are operating well. Additionally the International Laboratory Accreditation

Cooperation (ILAC) sent notification that it would like to formally recognize the project for

contributions made to the world of accreditation.

TRADE CAPACITY BUILDING & AWARENSS ACTIVITIES As Lao PDR modernizes legislation, the ability of the central, and provincial governments to be

able to understand and implement laws and regulations is essential. It is also vital that the private

sector is aware and knowledgeable of these trade policies and regulations and understands the

implications of trade agreements such that they take advantage of new trade opportunities. During

the first year USAID LUNA II paid a great deal of attention to this area of work, conducting

numerous workshops and trainings and implementing a survey that will help to better target

private sector capacity building and awareness efforts. In addition, we sought to include trade

and economic governance activities in the local press.

Trade Awareness

In its first year, USAID LUNA II conducted workshops that sought to raise awareness about trade

liberalization, WTO membership and the AEC with the National University of Laos and

Parkpasack Technical College. In addition, we supported MOIC/FTDP to organize a few

awareness and coordinating meetings with government officials on WTO and AEC. With MOJ,

we organized meetings in every province in Lao PDR to raise awareness about the Law on

Making Legislation, the e-Gazette and trade integration. USAID LUNA II also held workshops

with MOIC in Vientiane and MOJ in Luang Prabang to discuss the role of gender in trade.

Workshops and Trainings

This year USAID LUNA II supported 27 workshops and training events. In total these events had

1,066 participants, 44 percent of which were female, and included officials from at least 23

different Lao government agencies. This also includes a total of 469 person hours of training

completed in trade and investment capacity building.

Business Perceptions Survey

USAID LUNA II worked with LNCCI to conduct a survey on how businesses in Lao PDR are

experiencing, perceiving and adjusting to opportunities and challenges created by international

trade. The survey surveyed 287 firms across 4 provinces. 47 percent of the firms in the sample

providing gender data were firms with at least 50 percent female ownership. The survey found

that businesses are capitalizing on opportunities created through trade liberalization with 80

percent using imported inputs and nearly half involved in exports. However, the survey also

found that there is a strikingly low level of knowledge about trade policies and trade agreements.

The two most frequent selections of sources of information were news on the radio and TV and

through the press or other printed media. In the next year USAID LUNA II intends to use these

sources more often and is considering developing a series of short videos that could raise the level

of trade policy knowledge.

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GENDER INTEGRATION From the start of the project, USAID LUNA II has recognized that trade policy must be crafted

such that the economic opportunities it creates are maximized for both men and women and that

existing inequalities can act as a constraint to trade expansion and economic growth. For this

reason, USAID LUNA II has engaged a gender specialist who reviewed the Life of Project Plan,

the Communication Plan, the PMEP and other key project documents. The specialist also

developed a gender integration checklist to be utilized by project consultants to ensure they are

actively taking steps to integrate gender into their technical activities as well as a gender strategy

for USAID LUNA II.

LOOKING FORWARD USAID LUNA II is looking forward to continuing the work that began so successfully this year.

In the coming year the project and MOJ will launch a revamped e-Gazette site that will be more

user friendly, developing a smartphone app for the e-Gazette and publishing provincial legislation

on the e-Gazette. USAID LUNA II will continue to work with MOST on strengthening its ability

to implement standards that will benefit private sector’s productive capabilities and with LNCCI

on highlighting trade opportunities and policy obstacles to trade. USAID LUNA II also shares

the SPC’s enthusiasm for drafting the IP Enforcement Guidelines and expects those to be

finalized next year and to begin creating an IP National Committee. Keeping in mind ASEAN

economic integration and the AEC, USAID LUNA II plans to continue supporting development

of a Lao National Single Window and assist with matters related to e-transactions and e-

commerce. And overarching all activities will be to support activities designed to increase

awareness of trade and economic governance to the public and businesses throughout Lao PDR.

1 Activity/Mechanism Overview

Activity/Mechanism Lao PDR–U.S. International and ASEAN Integration Project (USAID LUNA II)

Activity/Mechanism Start

Date and End Date 24 March 2014 through 23 September 2018

Name of Prime

Implementing Partner Nathan Associates Inc.

Contract Number AID-OAA-I-12-00039, Task Order AID-486-TO-14-00003

Name of

Subcontractor(s) EDC

Major Counterpart

Organizations Ministry of Industry and Commerce (MOIC)

Geographic Coverage

(States/Provinces and

Countries)

Lao PDR

Reporting Period April 1, 2014 – March 31, 2015

The United States Agency for International Development’s (USAID) Lao PDR–U.S. International

and ASEAN Integration (USAID LUNA II) Project is designed to build the capacity of the Lao

PDR to comply with and fulfill commitments under three trade agreements, improve economic

governance and rule of law, and lay the foundation for a modern market economy.

The project supports Lao PDR in:

1 Meeting World Trade Organization (WTO) accession commitments,

2 Achieving full membership in the ASEAN Economic Community,

3 Continuing to meet requirements of the U.S.– Lao PDR Bilateral Trade Agreement, and

4 Instituting reforms that can stimulate job-creating investment—something essential to Lao

PDR’s ultimate goal of achieving middle-income country status by 2020.

The project works with national, provincial, and local governmental institutions; business groups

and associations; research institutions; and non-governmental organizations. The project also

seeks opportunities for improving the economic condition of women, rural citizens, and ethnic

minorities. Through these steps the project seeks to encourage broad and inclusive growth.

2

OVERVIEW OF PROJECT OBJECTIVES Under the Memorandum of Understanding (MOU) between USAID and GOL, USAID will

provide $8.95 million, subject to availability of funds, in development assistance from 24 March

2014 to 23 September 2018 to support USAID LUNA II’s efforts in two main objectives (Figure

1-1: Framework for USAID LUNA II Project (2014–2018)):

Trade Liberalization. During the previous year, USAID LUNA II helped Lao PDR integrate

further into the global trading system and strengthen the foundation for a market economy.

Deeper integration and the more transparent rules-based system required by trade agreements will

lower risks to businesses and stimulate investment—spurring the growth necessary for Lao PDR

to become a middle-income economy. USAID LUNA II helped Lao PDR complete its WTO

accession commitments and further develop its electronic gazette—a linchpin of sound

governance and a requirement of most trade agreements.

Trade Capacity Building. During the previous year, USAID LUNA II provided training on the

global trading system, enhancing understanding of trade opportunities and on economic

governance issues. Government officials learned about best practices in legal reform and

development of laws and policies, and how to comply with international and regional trading

obligations.

OVERVIEW OF USAID LUNA II PROJECT COUNTERPARTS

The Ministry of Industry of Commerce (MOIC) is the main counterpart for USAID LUNA II.

The Foreign Trade Policy Department (FTPD) is the main technical counterpart, and the

Department for Planning and Cooperation (DPC) is the main MOIC coordination counterpart for

USAID LUNA II.

USAID LUNA II quickly picked up where LUNA left off: it provided support to 10 counterparts,

including 7 line ministries—the Ministries of Industry and Commerce (MOIC), Justice (MOJ),

Agriculture and Forestry (MAF), Health (MOH), Finance (MOF), and Science and Technology

(MOST)— as well as the National Assembly (NA), the Supreme People’s Court (SPC), the Lao

National Chamber of Commerce and Industry (LNCCI), and the American Chamber of

Commerce. Requests for USAID LUNA II assistance during Year 1 were formalized through

written requests from counterparts to MOIC’s FTPD and through approval of the annual work

plan by MOIC’s Program Executive Committee (PEC).

OVERVIEW OF USAID LUNA II INSTITUTIONAL ARRANGEMENTS

1.3.1 Program Executive Committee (PEC)

The Program Executive Committee (PEC) served as the Steering Committee for USAID LUNA

II. The PEC meeting in Year 1 was held on September 15, 2014 and was chaired by the Vice

Minister of the Ministry of Industry and Commerce and the co-chair is the Focal Point of the

Enhanced Integrated Framework (EIF). The co-chair for USAID LUNA II at last year’s PEC

meeting was Mr. Curtis Borden, from USAID and working at the U.S. Embassy in Lao PDR.

A C T I V I T Y / M E C H A N I S M O V E R V I E W 3

The last PEC meeting reviewed and approved USAID LUNA II’s project implementation report

to date and detailed work plans.

1.3.2 Project Review Committee (PRC)

The Project Review Committee (PRC), which exists solely for project support, met prior to the

PEC on August 15, 2015. It was chaired by a senior official from MOIC, and co-chaired by a

representative from USAID. The PRC includes all technical counterparts and served as the

technical working body to give input into the project’s annual work plan. The PRC formally

submitted the annual work plan to the PEC for endorsement.

Figure 1-1

Results Framework for Lao PDR - U.S. International and ASEAN Integration Project (FY2013-2018)

Investment in Agriculture & Nutrition-related Activities Increased

Source: Luna II contract with modifications suggested by USAID M&E Specialist in Program Development Office

Lao PDR Vision: “Least Developed Country (LDC) Graduation by 2020”

Project Goal: Strengthened foundation for a modern, market economy

Indicator: Volume of foreign Trade (export + import) as a percentage of GDP

Critical Assumptions

Government, the National Assembly, Judiciary will continue to implement

reforms (political will).

Project Purpose: Improved economic governance by effectively and equitably complying with and implementing trade agreements

Indicators:

1) Number of proposed laws and/or rules affecting commerce notified in advance to the public using the Official Gazette system as a result of USG assistance

2) Number of consultations that have been conducted with relevant stakeholders to obtain feedback on policies, law, regulations,

systems and procedures affecting commerce

Development Context/Problem

Statements

Institutional and human capital capacity constraints

Ability of the Government of Lao

PDR to create and sustain institutions necessary for regulating a modern market economy.

2. Improved ability of concerned government authorities to effectively and equitably develop, implement, and adjudicate economic laws and regulations.

3. Enhanced roles of civil society organizations, including the private sector, Chamber of Commerce, Women’s

Union and business associations, to actively and inclusively engage in trade policy development.

INSTITUTIONAL CAPACITY BUILDING

1. Improved compliance with and implementation of trade agreements

TRADE AGREEMENT COMPLIANCE

2. The concerned government authorities

Outputs

2.1 Increased capacity of GOL to implement trade agreements

2.2 Enhanced trade liberalization through institutional

capacity building activities

2.3 Increased capacity of GOL to address equality in

the development and implementation of economic

laws and regulations

3. Civil Society Organizations & the Private Sector

Outputs

3.1 Strengthened Lao National Chamber of Commerce and Industry (LNCCI), and indigenous SME business associations

3.2 Strengthened public-private engagement on trade and business environment policies

3.3 Enhanced SMEs capacity to take advantage of

trade agreements in selected sectors

Outputs

1.1 WTO Action Plans implemented (e.g. TBT Action Plan, TRIPS Action Plan, Legal

Transparency and Participation, Rights to Appeal Administrative Decisions, Trading Rights)

1.2 AEC blueprints fulfilled (e.g. E-commerce, Regulatory Best Practices)

1.3 Lao-U.S. BTA requirements fulfilled (e.g. Intellectual Property Rights, Commercial Dispute

Settlement)

1.4 Policies, law, regulations, systems, and procedures improved

1.5 .Enhanced Lao-U.S. economic cooperation and partnership through trade and investment

1.6 Trade agreement implementation that advances equitable access to economic opportunities

Development Hypothesis

Enhanced capacity of the GoL to meet its commitments, comply

with and implement multinational and regional trade

agreements (including WTO compliance, AEC realization, and BTA

compliance) will improve economic governance and lay the

foundation for modern

market economy.

2 Activity Implementation Progress

The USAID LUNA II annual report is divided into activities that parallel the life of project work

plan: project startup activities, activities relating to trade liberalization (implementation of WTO,

AEC and BTA agreements) and trade capacity building.

HIGHLIGHTS OF KEY DELIVERABLES

Post-Award Briefing and

Orientation

8 April 2014 (call scheduled within 15 days as specified in contract)

COP Mobilization The COP was mobilized on 24 April 2014. (Amended mobilization schedule agreed to by

acquisition specialist called for mobilization by 24 April2014.)

First year Work plan

Submitted first draft on 29 April 2014 (within 30 days of task order start date; CO

extended due date to 9 May 2014). Second draft submitted on 1 June 2014, which was

formally approved by USAID and the PEC in September 2014. LUNA-14R-001 (Life of Project Plan) and LUNA-14R-004 (Y1 Work Plan).

Performance Management

and Evaluation Plan (PMEP)

Submitted first draft on 16 June 2014. (CO extended deadline to 24 June 2014, extending

the 75-day deliverable deadline). Report # LUNAII-14R-002. A revised and final PMEP was delivered on November 11, 2014 and approved by USAID on February 19, 2015.

Project Baseline

Submitted on 15 August 2014. (CO extended reporting deadline to 15 August 2014, thus

extending the 120-day deliverable deadline). Report # LUNAII-14R-005. A revised draft was produced on December 17, 2014 and delivered to USAID in March 2015.

WTO TBT Compliance

Passage of a New Standards Law in November 2014 met end-of-2014 goal for WTO

TBT compliance.

Business Perceptions

Survey (BPS)

A nationwide survey to gauge the perception of Lao businesses on trade liberalization

was initiated during the current year.

Gender Integration

A Gender Strategy and gender check list was developed; gender is being integrated into

project activities; and an operations manager will be hired and will handle day-to-day

gender issues for the project.

Legal Transparency At the end of 2014, 248 pieces of national legislation had been submitted to the e-

Gazette. This included legislation such as the draft law on Violence Against Women,

which was posted for comment. USAID LUNA II’s main counterpart, MOIC submitted

56 pieces of legislation, which was the highest amount of any government body. Since

June 2014 visits to the website have increased nearly 300%.

Operate the E-Gazette by end

of 2014

The Lao Official Gazette (E-Gazette), with USAID LUNA II support, was fully

operational by the end of 2014. Numerous new legislation has been posted to the website

and visitor traffic has increased dramatically.

Trading Rights The February 2015 deadline for complying with WTO Accession Commitments on

trading rights has been met.

Workshops & Capacity

Building

This year USAID LUNA II supported 27 workshops and training events. In total this

events had 1,066 participants, 44 percent of which were female, and included officials

from at least 23 different Lao government agencies. This also includes a total of 469

person hours of training completed in trade and investment capacity building.

Semiannual Work Plan

Review and Amendment.

Delivered to the PEC meeting in September 2014.

A - 6 U S A I D L U N A I I A N N U A L R E P O R T ( 2 0 1 4 - 2 0 1 5 )

Quarterly Progress

Reporting

First and second quarterly reports submitted on October 2, 2014. Third quarterly report

submitted February 2, 2015 and the Fourth Quarter Report was delivered April 15, 2015.

(LUNAII-14R-006/007 & LUNAII-15R-001/004)

Communications Plan A final revised Communications Plan was approved by USAID during the quarter

(LUNAII-14R-003A)

Success Stories

Submitted along with Quarterly Report. Report # LUNAII-14R-007B-E and USAID

LUNA II-15R-001A

PROJECT MANAGEMENT ACTIVITIES A number activities during year 1 related to project startup and mobilization, which were

necessary to ensure USAID contract compliance as well as to establish systems that will enable

USAID LUNA II to operate effectively. The project startup team was able to mobilize the project

quickly and meet all contractually agreed upon dates for deliverables. Implementation of a few

key technical activities started as the work plan was being approved.

2.2.1 Project Launch Event

On 28 April 2014, senior officials of the Ministry of Industry and Commerce (MOIC), the U.S.

Embassy, and USAID formally launched the second

Lao PDR–U.S. International and ASEAN Integration

Project (USAID LUNA II).

In the presence of H.E. Minister of Industry and

Commerce Mrs. Khemmani Pholsena, a memorandum

of understanding (MOU) was signed in Vientiane by

Vice Minister Siaosavath Savengsuka, U.S.

Ambassador Daniel A. Clune and USAID Regional

Development Mission for Asia Mission Director Mr.

Michael Yates. Under this MOU, USAID will provide

for the USAID LUNA II project and will contribute

to the Trade Development Facility II, a multi-donor

trust fund administered by the World Bank and executed by the MOIC.

The signing of the MOU was essential to starting the project and moving into technical assistance

activities. The MOU enabled the USAID LUNA II team to quickly finalize a Nathan–MOIC

MOU, open bank accounts, procure equipment, sign a lease for office space, and engage in other

logistic and administrative activities for the project to begin. The USAID LUNA II team is

grateful for the support provided by USAID, the U.S. Embassy and MOIC to facilitate a quick

project startup.

2.2.2 USAID LUNA II Organization and Staffing Structure

Mr. Ashok Menon was quickly mobilized as the Chief-of-Party. Dr. Franck Boulin, Ms. Chaikeo

Kedsadasak, and Mr. Somsay Orasith all returned to USAID LUNA II from the original LUNA-

Lao project. The project advertised for positions and hired: Ms. Monlatda Chanthavong as the

Office Manager; Ms. Buasawan Simmala as the Communications Manager; and Ms.

Thipphachanh Chanthalangsy as the Finance Manager. Ms. Mallory Holding was initially hired as

in intern to support project implementation, and returned as a consultant. We are working to hire

Signing of USAID LUNA II MOU in Vientiane

A C T I V I T Y I M P L E M E N T A T I O N P R O G R E S S 7

an M&E Officer, who should hopefully be hired at the beginning of the next fiscal year. The

overall organization and staffing structure of the project is presented graphically in Figure 2.1

below.

2.2.3 Setup of Local Office

The project was able to set up and procure equipment for the local office, including a project

vehicle. The office is located at the following address:

The Green Building

Ban Naxay, Unit 41

Building 429, 5th Floor

Saysettha District, Vientiane, Lao PDR

Figure 2-1

USAID LUNA II Project Organization

Key

Managerial and

technical oversight

Future subcontracts

and purchase orders

Technical resources Collaboration

COR

Resource Partners and

Groups

Counterparts/Beneficiaries

• Ministry of Industry and Commerce

• Ministry of Justice

• Ministry of Finance

• Ministry of Science and Technology

• Ministry of Agriculture and Forestry

• Ministry of Health

• National Assembly

• Supreme People’s Court

• LNCCI

• Amcham

• Private sector businesses

• Universities and research

institutions

• Citizens and media

• Disadvantaged groups—women,

persons with disabilities, and ethnic

minorities

Stakeholders

• LNCCI

• AMCHAM

• Other business chambers

(i.e., ECCIL, ANZBA)

• Consulting Companies /

Law Firms

• National University of

Laos, Faculty of Law and

Political Science

• MOIC (Chair)

• Co-Chairs

Program Executive

Committee (PEC)

• U.S. Embassy

• Office of the U.S. Trade

Representative

• U.S. PTO

• UN Trade Cluster Project

• EIF Tier 1 and 2 Projects

• GIZ Regional Market

Integration Project

• WB TDF II Project

• USAID ACTI Project

• ADB SPS/TBT Project

• Other donors/projects

Prime Contractor

Nathan Team

Subcontractor

Nathan Associates Inc.

EDC

• Ashok Menon – Chief of Party

• Franck Boulin – Senior Legal Adviser

• Chaikeo Kedsadasak – Office Coordinator

• Monlatda Chanthavong– Office Manager

• Buasawan Simmala - Comms Manager

• Thipphachanh Chanthalangsy – Finance Manager

• Somsay Orasith – Translator

• Mallory Holding - Intern

• Medium- and short-term technical specialists

Vientiane Project Office

USAID/RDMA

Project Review Committee

(PRC)

• MOIC/FTPD (Chair)

• MOIC/DPC

• Counterparts

• USAID, US Embassy


2.2.4 Develop the Life of Project and Annual Work Plan (AWP)

The USAID-USAID LUNA II project developed and submitted the work plans to USAID, MOIC

and the PEC. A life of project plan (LOPP) (LUNAII-14R-001) and an annual work plan (AWP)

(LUNAII-14R-004) were developed in close consultation with counterparts. Numerous meetings

were held with the 10 USAID LUNA II project counterparts. The Program Review Committee

(PRC) was convened at a workshop on 15 August 2014 to discuss the work plans. The LOPP and

AWP were submitted to the Program Executive Committee (PEC) in mid-September and

presented at the PEC meeting on September 15, 2014. The project is currently in the process of

drafting the annual work plan for the projects second year.

2.2.5 Develop the Project Monitoring and Evaluation Plan (PMEP)

During the previous year, the USAID-USAID LUNA II team developed a monitoring and

evaluation (PMEP) plan. Erika Dunmire, a monitoring and evaluation (M&E) specialist, was in

Vientiane 3–16 June 2014 to help USAID LUNA II develop the PMEP. The draft PMEP was

submitted to USAID on 16 June 2014. Ms. Dunmire updated the PMEP based on USAID

comments during a trip to the project from October 16 – November 1, 2014. A final revised draft

of the PMEP was submitted to USAID on November 11, 2014, was approved on February 19,

2015 (LUNAII-14R-002), and will continue to be updated throughout the life of this project.

2.2.6 Develop the Project Baseline

The USAID—USAID LUNA II project mobilized a team of experts to conduct a project baseline

assessment to advance the development of a project baseline. The baseline assessment forms part

of the project baseline, in addition to the PMEP, Business Perception Survey, Gender Integration

Strategy, and Communication Plan. The assessment team consisted of Mark Walter, Louise

Williams and Stewart Pierce-Gardner from Nathan and Nick Klissas from USAID/Washington.

The team was in Vientiane from 9-23 June 2014. The baseline (LUNAII-14R-005) was submitted

to USAID on August 15, 2014 for comments. After soliciting feedback from experts on Lao PDR

and ASEAN-related reforms, Stewart Pierce-Gardner from Nathan worked to produce a revised

draft on December 17, 2014, which was delivered to USAID for comment and approval. The

baseline compiles numerous indicators related to private sector development in Laos and

compares the current indicators with indicators in 2006. It is anticipated an update of this report

will be undertaken towards the end of the project.

2.2.7 Develop the Communications Plan

The USAID – USAID LUNA II project developed a draft communication plan and submitted it to

USAID. Jacqueline Franck, a communications specialist, was in Vientiane from 3–10 June 2014

to work with USAID LUNA II on the plan. USAID provided comments, which were incorporated

and finalized by the Chief of Party. The finalized communications plan was submitted to USAID

on December 12, 2014 (LUNAII-14R-003A) and soon thereafter formally approved.

2.2.8 Integrate Gender into USAID LUNA II Activities

As part our USAID LUNA II contract, gender concerns were integrated into programmatic

activities. We worked with Gretchen Bloom, a gender specialist, to help integrate gender issues

into USAID LUNA II through reviews of the life of project plan, the annual work plan and the

M&E plan. Ms. Bloom traveled to the project from November 7-23. During her trip, Ms. Bloom

A C T I V I T Y I M P L E M E N T A T I O N P R O G R E S S 9

briefed Patty Alleman, USAID/RDMAs Regional Gender Advisor, on approaches to integrate

gender perspectives into USAID LUNA II programming; conducted gender-awareness training

for project staff; and, led two gender workshops on gender mainstreaming, one at the MOIC in

Vientiane and the other for MOJ staff in Luang Prabang. A draft gender checklist was developed

by Ms. Bloom and refined by Mallory Holding based on feedback from visiting consultants. The

checklist will be given to consultants to complete to ensure gender issues are integrated into

project activities. Ms. Bloom is also in the final stages of developing a Gender Integration

Strategy for the project. The USAID LUNA II project is in the process of analyzing results of the

BPS. Nearly half of the respondents in the BPS were firms with majority female ownership (47%)

with about 41% of women-owned firms saying they were involved in export activities.

Additionally, the BPS asked respondents if they saw any differences in trade opportunities for

male and female-owned businesses and what policies they would recommend to address these

differences. These responses were analyzed by both the gender of the owners and the gender of

the primary respondent. Gender gaps and opportunities identified in the BPSs will be

incorporated into the Gender Integration Strategy.

2.2.9 Emerging Markets Development Advisers Program (EMDAP)

The Emerging Markets Development Advisers Program (EMDAP) is a fellowship and

cooperative activity between USAID and the Institute of International Education (IIE). Through

EMDAP, U.S. graduate students and recent graduates will provide technical assistance and

support to USAID LUNA II and our counterparts. It was decided not to use an EMDAP adviser

as there was already one EMDAP adviser funded by USAID working with AmCham Laos.

2.2.10 Internships

Internships are an excellent way to give students practical work experience while supporting

implementation of USAID LUNA II. In the first year, our intern was Ms. Mallory Holding from

Georgetown University. Ms. Holding completed her internship and was contracted to provide on-

going support to project implementation. Ms. Holding provided support on the BPS & CSO

Survey, gender, M&E, and an economic impact study. We are in discussions with possible

summer intern candidates who are graduate students at Georgetown’s McCourt School of Public

Policy and Harvard’s Kennedy School.

2.2.11 TraiNet

USAID LUNA II requested and received TraiNet access and sent two USAID LUNA II office

staff to USAID/RDMA from November 3 – 8 for TraiNet training.

2.2.12 Cost Savings

The project worked to save costs while meeting contract requirements and delivering quality

technical assistance. USAID LUNA II worked closely with the USAID ACTI project to

coordinate on the use of technical experts and shared costs to bring the experts to the region. We

coordinated closely with the Philippines in organizing a study-tour for the Lao Supreme People’s

Court on IPR issues, which resulted in the Philippines providing transportation and covering other

costs, such as meetings. This was acknowledged by a letter from the US Ambassador to Laos to

the IPOPHL Office in Manila. And most importantly, USAID LUNA II worked with

counterparts to hold virtually all workshops and trainings either in the USAID LUNA II offices or


at counterpart facilities to avoid high costs of hotels. We also worked with two leading law firms

that offered pro-bono expertise for the legal drafting workshops we held with MOJ.

2.2.13 Coordination

As previously mentioned, in addition to coordinating closely with the USAID ACTI project,

we’ve also worked closely with various donors in Laos, such as TDF2 (on standards issues), the

FAO (on SPS), JICA (on the civil code), with UNDP (on the SLMSP), GIZ (on survey work), the

World Bank (on various activities), the Ideas Center (on capacity building), ADB (on SMEs and

RIA) and other donors to explore possible areas for collaboration.

WORLD TRADE ORGANIZATION (WTO COMPLIANCE) ACTIVITIES

The Lao PDR WTO Accession Working Party Report and annexes note close to 30 post-

accession commitments that Lao PDR has promised it would implement. Many of those

commitments have stipulated deadlines. USAID LUNA II will support counterparts in complying

with WTO accession requirements through the following seven activities requested by Lao PDR

counterparts.

2.3.1 Intellectual Property Rights

The WTO Working Party Report has an IPR action plan that details what Lao PDR must do to

comply with the TRIPS Agreement by the end of 2016. However, the WTO TRIPS Council

extended the deadline for compliance to July 1, 2021 for least developed countries. Despite the

delay in full compliance with the TRIPS Agreement, Lao PDR will still make progress towards

meeting commitments, as doing so will help create a better business environment. During the

previous year, USAID LUNA II had various meetings with MOST/DIT and the SPC, and

developed training agendas for workshops, a survey on IPR awareness for the SPC, advancing on

issuing patents, on ex officio actions and other related activities.

USAID LUNA II supported a delegation of three officials from MOST to travel to Washington,

DC, from 23–27 June 2014 to attend a workshop organized by the U.S. Patent and Trademark

Organization (USPTO) on Intellectual Property Office Administration for ASEAN Members.

Discussions during the workshop focused on the full function and responsibility that a national IP

office provides, including intergovernmental roles, strategic, budget and policy development,

patent and trademark operations and division administration, human resources and hiring policies,

educational outreach, and IP public awareness promotion. The program was held at the USPTO

Global IP Academy in Alexandria, Virginia. USAID LUNA II worked closely with USAID, the

U.S. Embassy and the DOC to realize this activity.

Ms. Judy Goans, an IP Consultant, was in Vientiane to work on drafting the IP Enforcement

Guidelines with the SPC, including a series of legal drafting and capacity building workshops;

providing instruction for IP Enforcement for MOST/DIP; and assisting in developing the plan for

creating public awareness of IP issues in Laos.

2.3.1.1 Enable ex officio actions in compliance with TRIPS Article 58

Ex officio authority provides customs officials with legal grounds to seize goods that they suspect

are infringing on intellectual property rights. This authority must be balanced with the need to

A C T I V I T Y I M P L E M E N T A T I O N P R O G R E S S 1 1

facilitate trade and protect importers from abuse. Lao PDR’s Customs Law currently allows for

seizure and impoundment of suspect goods, and its Instruction on Customs Measures for the

Protection of Intellectual Property Rights (Instruction No. 1970/MOF, 08/09/2011) stipulates ex

officio actions that comply with TRIPS Article 58 of TRIPS (WTO Trade-Related Intellectual

Property Rights Agreement).

This year USAID LUNA II finalized a briefing note for MOIC/FTPD, Ex Officio Action and IPR,

outlining outlines actions that need to be taken and how to amend the MOF instruction to clarify

the scope for ex officio action without revising the Customs Law. In addition, USAID LUNA II

met with Mr. Somphit Sengmanivong, Deputy Director General of Customs Department, MOF,

to discuss Ex Officio issues in Laos. Members of the USAID LUNA II team (Ashok Menon,

Franck Boulin, Chaikeo Kedsadasak, Somsay Orasith) had a follow up meeting with officials

from MOST and MOIC to continue discussing Ex Officio issues. This included possible capacity

building activities for customs on IPR border enforcement, which, if requested by Customs, will

be considered for the next annual work plan. Due to continuing conversations with Customs,

plans for the consultation workshop, study tour and operations manual that were stated in this

years annual work plan are still on-going

2.3.1.2 Build Judicial Capacity on IPR

USAID LUNA II’s Ms. Judy Goans worked with the SPC to draft IP Enforcement Guidelines that

meet TRIPS requirements through a series of workshops and working sessions during her visit in

February 2015. A workshop on this issue took place on February 2, 2015 for 16 participants from

the SPC, the DIP, NUOL, & MOST. Ms. Goans also facilitated four working sessions from

February 9-12, 2015, each of which was attended by 11 SPC officials. During the working

sessions they wrote draft guidelines for copyrights cases and began frameworks for SPC to

continue drafting guidelines for patents and trademarks.

The project also organized a study tour to send SPC officials to the Philippines to learn from the

IP enforcement models of other WTO member countries from 1-7 March 2015. During the tour,

participants were able to receive in-depth training into how the Philippines handles its IP cases

and discussed future capacity building and ASEAN IP harmonization opportunities. The

Philippines was selected in part the Lao SPC used the Philippines enforcement guidelines as a

model for their own. Having returned from the study tour, the SPC is working with USAID

LUNA II to complete the draft IP enforcement guidelines.

2.3.1.3 Issue Lao PDRs First Patents

USAID LUNA II had meetings with MOST/DIP Patent Division to finalize the issuance of Lao’s

first patents using external resources (e.g., the WIPO Patent Information Services for Developing

Countries or the USPTO Patent Database) to examine patents and internal capacity for approving

or rejecting patent applications. Approximately 10 patents have been reviewed and are close to

being finalized. USAID/USAID LUNA II will support MOST in a public event to celebrate the

issuance of Lao PDRs first patent, which is anticipated to be on April 26, 2015.

2.3.1.4 Develop Work Plans for IPR Awareness

USAID LUNA II’s IPR expert, Ms. Judy Goans, worked with MOST/DIP to develop an annual

and six month work plans. The work plans formed part of USAID LUNA IIs overall work


program and included capacity building courses for government officials on enhancing IPR

awareness as well a broader public awareness campaign on IPR around World IP Day on April

26, 2015.

2.3.2 Standards, Metrology and Conformity Assessment

USAID LUNA II helped MOST meet the end-2014 deadline for WTO Compliance by quickly

mobilizing our TBT (technical barriers to trade) expert, Ed Nemeroff, from 5–13 June 2014 and

from 10–22 October 2014 to work with the TBT team at MOST-DSM and to work on the TBT

Action Plan.1 The passage of the Metrology Law and the Standards Law helped meet the WTO

deadline. LUNA provided most of the technical expertise in the development of the laws.

USAID LUNA II cooperated with technical advisors from the Enhanced Integrated Framework

(EIF) project to ensure technical assistance was complimentary and integrated into the broader

effort to improve the TBT system.

During the past year, project activities in the area focused on aligning the legal and regulatory

requirements as well as the technical capabilities of MOST/DSM with the WTO and ASEAN

TBT agreements. Significant progress was made in implementing many of the goals of the

National Quality Infrastructure.

2.3.2.1 Develop a National Code of Practice for Technical Regulations

By law, DSM is required to develop a National Code of Practice for Technical Regulations that

will provide uniform procedures for the creation, publication, and enforcement of technical

regulations at the central and local levels in line with the Law on Standards, and in line with

international treaties and agreements of which Lao PDR is a member including the TBT

Agreement Article 2. Mr. Nemeroff traveled to Vientiane from 10–22 October 2014 to work with

the TBT team at MOST/DSM and begin working on the TBT Action Plan and produce a Code of

Practice for Technical Regulations. This year the code was developed and translated.

USAID LUNA II worked with MOST/DSM to hold a workshop in February 2015, hosted at the

USAID LUNA II offices, to introduce members of DSM and the TBT Enquiry Points from

relevant line ministries the procedures of the Preparation, Adoption and Application for Technical

Regulations included in the code of practice. Thirty-five participants, from 10 ministries, (MOST,

MOJ, Ministry of Foreign Affairs (MOFA), Ministry of Energy and Mines, Ministry of Public

Work and Transportation, Ministry of Natural Resources and Environment, Ministry of Health,

Ministry of Agriculture and Forestry, and MOIC), participated in the workshop.

2.3.2.2 Review New Law on Standards for WTO Conformity

This year, USAID LUNA II translated, reviewed and commented on the new Law on Standards,

which was passed in November 2014 with a notification sent to the WTO. Mr. Nemeroff

reviewed the law and provided comments on its compliance with the WTO TBT agreement as

well as with international best practice and produced an issue brief outlining the issues with the

1 USAID LUNA II will cooperate with TBT advisers from the Enhanced Integrated Framework II’s

project, with UNIDO, and with the German National Metrology Institute to ensure that our technical

assistance is complementary and integrated into the broader effort to improve the TBT system in Lao PDR.

USAID LUNA II will focus on WTO implementation.


draft law. While the law was noted as an improvement over the 2007 version of the law, it still

contained a few problematic articles. Three technical meetings were held with MOST DSM to

discuss ways to improve the law and ensure that it is WTO compliant. A new draft of the law was

produced and submitted to MOST DSM and the National Assembly. USAID LUNA II supported

a consultative workshop between MOST and the National Assembly to discuss the draft law.

However, because most of the law had been developed and discussed during the gap between the

two LUNA projects, the process was already far along when USAID LUNA II entered

discussions. Officials were reluctant to change the old draft significantly, despite our

recommendations and the new draft we provided. USAID LUNA II continues to work with Mr.

Nemeroff to identify appropriate legislative changes and implementing regulations to improve the

level of compliance of the new Law on Standards.

2.3.2.3 Review New Law on Metrology for WTO Conformity

A new Law on Metrology was passed in December of 2013. USAID LUNA II translated the law

into English and Mr. Nemeroff reviewed the law for compliance with regards to the principles

and requirements in the WTO TBT Agreement, the ASEAN Consultative Committee for

Standards and Quality and the detailed international best practice requirements established by the

International Bureau of Weights and Measures (BIPM) and the International Organization of

Legal Metrology (OILM). The review found that there were articles not consistent with WTO

requirements and that did not follow principles established BIPM and OIML. USAID LUNA II

supported and participated in consultation workshops with ministries and the private sector,

which resulted in USAID LUNA II working with DSM to draft a revised metrology law that is

fully compliant.

2.3.2.4 Develop a Standards Work Program & Upgrading Membership in ISO

To be compliant with the WTO TBT Agreement Article 4, Lao PDR must submit to the

WTO/ISO a 6-12 month standards work program. Mr. Nemeroff worked with MOST to develop

a work plan as well as review the National Quality Infrastructure (NQI), which is a multi-year

work pan. Lao PDR was supposed to submit their 6-month standards work program but did not

do so this year despite our efforts to have them submit. In addition, an important aspect to

meeting Laos’ TBT obligations and realizing the NQI is upgrading their membership in the

International Standards Organization (ISO). During Mr. Nemeroff’s February 2015 visit he

developed a rational and cost benefits of moving towards full membership in ISO and secured

agreement from the TFD2 to finance the membership for a few years. At the time of writing,

MOST still had not upgraded its membership, which could jeopardize momentum on standards-

related work support by USAID LUNA II – this could be due in part to the untimely passing of

DG Sisompheth.

2.3.2.5 Establish National Committee on TBT

Complying with Article 4 of the TBT Agreement requires coordinating the development and

adoption of international standards with relevant line ministries. During the first year USAID

LUNA II held a workshop led by Mr. Nemeroff to overview the Preparation, Adoption and

Application for Technical Regulations included in the code of practice. The workshop had 35

participants representing 10 ministries. Continued activities of this nature will strengthen

coordination on standards and acts as a step towards establishing a national committee on TBT.


2.3.2.6 Operationalize the Lao National Accreditation Bureau

To comply with Article 5 of the WTO TBT Agreement Laos needs to operationalize its National

Accreditation Bureau, which has been established on paper in DSM. Working closely with the

Enhanced Integrated Framework Project, which supports a technical expert working with MOST

in this area, several requests were sent to MOST to formally establish the LNAB. Again, the

passing of DG Sisompheth may have slowed operationalization of this LNAB, so we will

concentrate on this in the coming year.

2.3.2.7 Support the TBT Enquiry Point

USAID LUNA II’s TBT expert Mr. Nemeroff provided trainings on the operations of the enquiry

point and how to respond and maintain required documentation as per WTO recommendations.

USAID LUNA II and MOST developed a tri-fold brochure promoting the services of the TBT

Enquiry Point.

2.3.2.8 Organize Consultation, Dissemination and Training Workshops

In July of 2014, USAID LUNA II supported a consultation between MOST and the National

Assembly to discuss the Law on Standards. A workshop on technical regulations occurred with

TBT enquiry points at in line ministries and brochures were developed to promote TBT Enquiry

Point services.

2.3.2.9 Develop a Survey of Quality Needs

In October 2014, USAID LUNA II, in cooperation with DSM, developed a survey questionnaire

of NQI needs of the private sector and relevant GoL ministries. The questionnaire has been

discussed with MOST and plans for implementation of the survey are being finalized with

MOST. It is anticipated that the survey will be conducted by inviting private sector firms to a

workshop sometime in the following work year. By hearing quality and standards-related needs

directly from the private sector, MOST will be able to more closely align its work plan to the

needs of the private sector.

2.3.2.10 Develop a National Quality Award

USAID LUNA II’s TBT expert Mr. Nemeroff provided MOST/DSM with initial guidelines for

establishing a National Quality Award and questions for a survey of quality needs. The National

Quality Award is likely to be named after former Deputy General Sisomphet who passed away in

January 2015.

2.3.2.11 Additional Work, Coordination, and Activities Related to Standards, Metrology and Conformity Assessment

During this past year, we also:

Coordinated closely with the TDF2 and NIU for the Tier 2 activity on the creation of LNAB

(Lao National Accreditation Bureau) and the Quality Centre for DSM. Our standards expert, Ed

Nemeroff, recommended consultants for the work; these consultants were hired and will

continue to coordinate with USAID LUNA II on creating the LNAB and Quality Center.

Were notified that the International Laboratory accreditation Cooperation (ILAC) wants to

formally recognize the contribution our project has made to the world of accreditation. This


recognition is a USAID success story and enhances the project’s work and the USAID

Standards Alliance.

In close coordination with the USAID ACTI project, sent two MOST/DSM officials to a

special workshop in Myanmar hosted by the Myanmar Scientific and Technological Research

Department and funded by USAID from October 27-30, 2014, to participate in an exhibit of

some of the newest metrology equipment produced by two of the world’s leading

manufacturers of electrical, temperature, and pressure calibration and test instrumentation.

Drafted a proposed program for the National Quality Infrastructure (NQI) Symposium /

Workshop to be held in May 2015. This workshop will announce the updated NQI through

2020 (the NQI is the work plan for standards-related work in Laos).

Drafted a rationale for DSM to participate with ASTM International was prepared, which

would help further compliance with the TBT agreement.

2.3.3 Fully Comply with WTO Requirements for Trading Rights

Trading rights, as identified by the WTO, include the right of any foreigners to import products

into a country without facing discrimination and unnecessary regulations. Trading rights only

relate to the ability to import and export goods and not the ability to distribute goods once they

are in the country. Decree No 205/PM, which regulated trading rights was replaced by Decree

No 114/GoL in 2011. The changes included in this new decree allow for any persons, both those

residing in Lao PDR and those residing outside the country, to participate in import activities.

Lao PDR made a WTO commitment that it would fulfill its trading rights commitments by

February 2015, thus allowing any natural or legal person of a WTO Member, regardless of

physical presence or investment in Lao PDR, the right to be the importer of record for all goods,

except for those listed in WTO accession commitments (e.g., those listed in Table 7(a)2 of the

Lao WTO Accession Report), for which a grace period of two years from the date of accession

(i.e. ending in February 2015).

The government of Lao PDR agreed to a legal framework that was in compliance with WTO

trading rights by the date of accession. Additionally, the Action Plan for Implementing Trading

Rights included in the Working Party report noted that key officials would need to be trained for

the successful implementation of their trading rights commitments and that there was a need for

enhanced public awareness of these rights.

USAID LUNA II worked with the MOIC’s Department of Import and Export (DIMEX) and

FTPD to review current Lao legislation on trading rights to ensure conformity with Lao’s WTO

commitments. Decree No. 205/PM of October 2001 required that any person wishing to import

and export goods for commercial purpose register as an enterprise in Lao PDR. A MOIC

2 This list relates to petroleum oils and gases, rice, cements, and bars and rods. The complete list is available at the end of this note.

Already, a MOIC Notification (Notification # 0076/MOIC – DIMEX, signed 01/13/2012) provides the necessary regulations for

automatic licenses [for statistical purposes only] for all goods mentioned under the Harmonized System Codes (HS Codes) listed in Table 7(a). It should be however noted that, despite its publication on the Lao Trade Portal, this Notification seems not yet published

on the Electronic Gazette. It is reminded that all regulations passed prior to the entry into force of the Law on Making Legislation,

which are not published in the E-Gazette by 31 December 2014, will cease to be valid.


Notification (Notification # 0076/MOIC – DIMEX) then made the necessary changes to allow for

automatic import licenses for those products listed in Table 7(a) of the WTO Accession report.

However, it should be noted that this MOIC notification was not promulgated on the E-Gazette

and instead only on the Lao Trade Portal.

USAID LUNA II produced an issue brief that outlines how Lao PDR is in compliance with its

WTO Trading Rights commitments by February 2015. Trading rights in Lao PDR now allow for

foreign companies to directly import and export goods without having to go through a state-

owned or locally based trading company. USAID LUNA II also included awareness-related

questions in the Business Perceptions Survey.

2.3.3.1 Conduct a Survey on Implementation of Trading Rights

In addition to reviewing Lao legislation and producing the issue brief. USAID LUNA II also

included questions in the Business Perceptions Survey (BPS) about the implementation of trading

rights. The questionnaire was discussed with and reviewed by MOIC’s Department of Import and

Exports (DIMEX) in October 2014. This meets the working party report’s requirement for a study

of trading rights. The results of the survey suggested that in 2014 the implementation of trading

rights was inconsistent with about 60% of firms saying they did not know anything about the

issue, 23% saying they had observed cases where this policy was implemented and 15%

responding that they had observed instances where this policy was not implemented. The full

survey report will be completed and released in April 2015.

Capacity building around implementation of trading rights

commitments can be developed as necessary in the following

work year.

2.3.4 Operate the Electronic Official Gazette by

End of 2014

Lao PDR launched the Electronic Official Gazette on 11

October 2013, meeting the WTO requirement well ahead of

schedule—but the job was not complete. USAID LUNA II has

helped build the central government’s capacity to run the

website, which was fully operationalized by December 2014.

During the previous year, we worked with MOJ on updating

the Electronic Official Gazette website to make it more

informative and user friendly. This work is a result of

suggestions made during the e-Gazette end-users’ meeting held

in August 2014. We also conducted the following activities:

A workshop with users of the e-Gazette was held on 20

August 2014 to solicit input in how to make gazette site

more effective: for example, including a search

function, offering space for public comment.

A workshop with government users of the e-Gazette was held on 21 August 2014 to make

government officials aware of the process for posting legislation and to highlight the

urgency of posting legislation by year-end.

An issue brief, The Law on Making Legislation, was written to summarize the law.

Box. 1 - List of Government Authorities that

received training on posting legislation on the E-

Gazette at the USAID LUNA II offices

1. Ministry of Industry and Commerce 2. Ministry of Public Works and Transport

3. Lao National Assembly

4. Ministry of Home Affairs

5. Ministry of Agriculture and Forestry

6. Ministry of Energy and Mines

7. Ministry of Posts and Telecommunications 8. Ministry of Justice

9. Lao Women Union

10. Lao Youth Union 11. Supreme People’s Court (SPC)

12. Research and Training Institute, SPC

13. Lao Government Office 14. Lao Front for National Constructions

15. Lao People’s Prosecutors Institute

16. Lao Trade Union 17. Lao Government Inspection Authority

18. Ministry of Information, Culture and Tourism

19. Ministry of Public Security 20. Ministry of Labor and Social Welfare

21. Bank of Lao DPR

22. Ministry of Planning and Investment

23. Ministry of Foreign Affairs

24. Ministry of Finance

25. Ministry of Education and Sports 26. Ministry of Science and Technology

27. Ministry of Public Health

28. Ministry of Natural Resources and

Environment


The project traveled with MOJ and

USAID to Luang Prabang for a regional

meeting from 19–20 August 2014. The

purpose was to talk with the Governor’s

office and MOJ about posting provincial

legislation to the E-Gazette and begin

planning for a northern regional

workshop. Similar activities for the

central and southern provinces (in

Kammouane, Bolikhammsay, Bokeo,

Luang Namtha, Oudomaxy, Phongsaly,

Xiengkhouang, Huaphan, Attapue,

Sekong, Saravan and Xayabouly) were

held during they year, which paved the way for regional workshops.

Coordination with UNDP on development of a Law Making Manual.

During the 4th quarter of this year USAID LUNA II traveled with MOJ and its vice

minister to the first of the regional workshops on the e-Gazette in Pakse for the southern

provinces to review legislative publication requirements and demonstrate how to submit

legislation to the e-Gazette. These trainings intend to kick-start the publication of

provincial legislation to the e-Gazette.

Produced of detailed overview of e-Gazette statistics and a summary factsheet for

USAID. This will be updated and new graphs will be produced when there is a full years

worth of data – likely during the first quarter of year two.

2.3.4.1 Legislation Posted to the Electronic Gazette

In 2014, the E-Gazette posted 248 pieces of national legislation (see Figures 2-2 and 2-3 for a

breakdown of types of legislation published). These are items that were issued previously, but

not published electronically on the e-Gazette. Legislation is categorized as a decision, decree,

instructions, law, order or ordinance. Items categorized as laws are required to be posted to the e-

Gazette. During the first three months of 2015, 40 additional pieces of legislation were posted to

the e-gazette.

Governing bodies are required to submit laws and other kinds of legislation (e.g., Decisions,

Decrees, Instructions, Laws, Orders and Ordinances) to the e-Gazette. Doing so improves

economic governance, legal transparency and helps to improve the business environment in Lao

PDR. During the last four months of 2014, the Official Gazette, held meetings and workshops

with governing bodies, both at the central and provincial levels, to encourage their submission of

existing legislation.

US Embassy Charge d’ Affaires Paul Mayer

and Vice Minister Ket Kettisak Open the E-

Gazette Workshops


Figure 2-2

Total Legislation Posted in 2014 by Type

Figure 2-3

Posting of Legislation Not Categorized as a Law, by Month

USAID LUNA II’s main counterpart, MOIC, submitted 56 pieces of legislation to be posted to

the E-Gazette in 2014. Other government bodies with high numbers of legislative submissions

were the Ministry of Agriculture and Forestry (36), the Bank of Lao PDR (31), and the Ministry

of Labor and Technology (13). A dramatic increase occurs around August and September,

directly after the public workshops MOJ/OG held with USAID LUNA IIs support.

79

42

10

83

31

3

0

10

20

30

40

50

60

70

80

90

Decisions Decrees Instructions Laws Orders Ordinances

0

5

10

15

20

25

30

Decisions

Decrees

Instructions

Orders

Ordinances


Table 2-1

Legislation Posted to the E-Gazette in 2014 by Agency

Agency Number in 2014

Bank Of the Lao PDR 31

Central Party's Office 1

Government Inspection Authority 4

Government Office 3

Lao Front for National Construction 1

Lao Trade Union 1

Lao Women's Union 1

Lao Youth Union 1

Ministry of Agriculture and Forestry 36

Ministry of Education and Sports 3

Ministry of Energy and Mines 6

Ministry of Finance 13

Ministry of Foreign Affairs 4

Ministry of Industry and Commerce 56

Ministry of Information, Culture, and Tourism 5

Ministry of Justice 6

Ministry of Labor and Social Welfare 13

Ministry of National Defense 4

Ministry of Natural Resources and Environment 3

Ministry of Planning and Investment 3

Ministry of Post and Telecommunications 9

Ministry of Public Health 7

Ministry of Public Security 4

USAID LUNA II presented a written proposal (including a draft regulation) to the MOJ

recommending an extension of the deadline for posting legislation passed before January 2013 in

the e-Gazette. We have been officially informed that the recommendations have been well

received by the Minister of Justice, who moved the proposal to the Standing Committee of the

National Assembly for approval. If the motion is carried, the deadline, which expired end of

2014, will retroactively be postponed until December 31, 2015.

On April 1, 2015 Lao PDR published its first piece of provincial legislation to the e-Gazette. This

came as a result provincial workshops that were organized during the fourth quarter on the

posting of provincial legislation on the E-Gazette. These workshop were organized for officials in

five southern provinces occurred on March 25-28, 2015. The workshop was intended to increase

provincial officials’ understanding of the legal and practical requirements of posting legislation

on the e-Gazette and encourage them to submit their legislation to be posted to the site. USAID

LUNA II anticipates more provincial postings in the coming months.


2.3.4.2 Visits to the E-Gazette

Data on the number of site-visits to the e-Gazette started to be collected by USAID LUNA II in

July 2014. Before that date, there had been 4,096 visits. From July to December the average

number of visits was 1,376, with an increase in visits nearly every month. At the end of 2014, the

total number of visits to the e-Gazette site was 12,342 (see figure 2-4 below). For first three

months of 2015, there were 6,491 visits to the site, bringing total visits to 18,833 from July 2014

to March 31, 2015. The figures and graphs will be updated when there is a full years worth of

data compiled – likely upon the completion of the first quarter of year 2.

Figure 2-4

Number of Visits by Month in 2014

Table 2-2

Reported Visits to the E-Gazette Website in 2014

Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

No. of visits by month - 909 1150 1144 1632 1683 1728

% Charge Monthly - 26.51% - 0.52% 42.66% 3.13% 2.67%

Total number of visits 4096 5005 6155 7299 8931 10614 12342

% Change Total Visits 22.19% 22.98% 18.59% 22.36% 18.84% 16.28%

Beginning in July of 2014, the e-Gazette began to collect information on number of site visits by

users in other countries. From July to December 2014 there were 1,171 international site visits.

During the last quarter of 2014, there was an average of 244 international visits a month. This is a

significant increase from the July-September monthly average of 147 international visits.

The first months of 2015 suggest that the trend of increased international visits is continuing, with

283 visits in January and 252 in February.

909

1150

1144

1632

1683

1728

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14


Figure 2-5

Number International Visits to the E-Gazette Website by Month in 2014

Thailand was the leading international visitor to the E-Gazette website with a total of 304 site

visits from July to December 2014. This was followed by Vietnam (268) and the United States

(184). During the last four months of 2014, both Japan and China demonstrated increased interest

in the site. ASEAN visitors to the site include Singapore, Cambodia, and Indonesia in addition to

Thailand and Vietnam. Figure 2-6 shows the monthly variation of site visits among the eight

countries with the highest number of visits. Thus far in 2015 Thailand, Vietnam and the U.S. have

the highest number of international visits.

Figure 2-6

Site Visits of the Eight Most Frequent Countries in 2014

Other reported country visits included Germany, Switzerland, Belgium, and Russia. Table 2-3

includes the total number of visits for the 15 countries that visited the E-Gazette site.

121

148 171

248258 225

0

50

100

150

200

250

300


0

10

20

30

40

50

60

70

80


Thailand

Vietnam

United States

Japan

China

Singapore

Cambodia

Australia


Table 2-3

International Visits from July – December 2014

Country Total

Thailand 304

Vietnam 268

United States 184

Japan 97

China 86

Singapore 47

Cambodia 36

Australia 26

Indonesia 17

Switzerland 16

Belgium 15

Russia 13

France 10

Germany 10

South Korea 10

Raise Awareness of Emerging WTO Issues

A number of issues have emerged in Doha Round negotiations. These include competition policy,

e-commerce, government procurement, investment, trade and the environment, and trade and

labor. Lao PDR’s policymakers and stakeholders must understand the principles and practices

underpinning these issues. To support this process, USAID LUNA II worked with FTPD to

organize a workshop for Lao PDR Government officials on WTO and ASEAN Economic

Community. This workshop was held on 8 August 2014 and had 62 participants. A workshop on

the government’s action plan for post-WTO accession was held on 19 August 2014 with 39

participants. In addition, together with the FTPD and National University of Laos, and

Parkpasack Technical College, USAID LUNA II organized two workshops in Vientiane on

February 5 and 6 that was intended to raise awareness about WTO membership and the AEC and

discuss what economic integration means for Lao citizens. Each workshop had over 150

participants.

2.3.6 Promote Public Awareness on Trade and Economic Governance

In addition to the activities outlined in 2.3.5 above, during this past year, USAID LUNA II held a

stakeholders workshop that identified the following needed improvements to the e-Gazette

website: improved search function; an ability to organize laws and information more functionally;

and, an ability to post comments on draft legislation. In addition, USAID LUNA II contracted

Cyberia, which developed the e-Gazette website on behalf of USAID LUNA, to implement the

numerous recommendations that came out of the workshops. After providing sample upgrades

for the MOJ to review, it is expected that a revamped E-Gazette website will be launched in the

next few months. USAID LUNA II has also been in discussions with USAID on developing a

smartphone app for the e-Gazette as well as possible short video spots on topics to be defined,

perhaps through the launch of a contest. And, as discussed in 2.3.4, numerous workshops were


held to promote awareness of economic governance issues surrounding the Law on Making

Legislation, the e-Gazette and on economic governance.

2.3.7 Build Capacity to Review Trade-Related Legislation

USAID LUNA II built capacity on two levels to review trade related legislation: (1) by working

directly with line Ministries in drafting legislation; and (2) with the National Assembly to ensure

that draft legislation bought to the National Assembly complies with trade agreements. Working

with line Ministries, USAID LUNA II experts worked with MOST/DIT on the E-Transactions

Law and related regulations on secure digital service providers; MOIC/FTPD on safeguards

legislation; the SPC on IPR Guidelines; MOST/DIP on IP regulations; and MOST/DSM on

standards-related legislation and a code of practice for development of technical regulations.

Working with the National Assembly, USAID LUNA II supported a workshop for

dialogue/consultation between MOST and the National Assembly on the Law on Standards. We

also produced an issue brief, a WTO-compliant Standards law and met with the National

Assembly and MOST to discuss the law and suggestions for improving the law. In addition to

continuing discussions on the Standards Law, we worked with the National Assembly on the draft

Customs Law that was under consideration.

2.3.8 Assist with Development of a Law on Safeguards

During the past year, USAID LUNA II continued dialogue with MOIC/FTPD to continue the

support provided under LUNA with the development of a Law on Safeguards. Franck Boulin

gave a presentation at a workshop funded by TDF2 on safeguards. USAID LUNA II then

mobilized Stephen Creskoff to Lao PDR from October 6-17, 2014 to provide additional

assistance on developing a safeguards law that complies with the WTO and will allow Lao PDR

to safeguard its trade interests as a result of economic injury sustained from liberalizing trade. Mr.

Creskoff helped draft the draft law/decree (drafted both a law and a decree as it is yet uncertain

which type of legislation MOIC will opt for) for safeguards; legal and technical comments to

assist the GoL drafting of legislation related to antidumping and countervailing measures that

meets WTO requirements and is inline with international best practice; and, conducted a small

technical workshop on the safeguards agreement. Mr. Creskoff also worked with FTPD in

producing a work plan for the adoption of safeguards legislation as well as an MOJ Regulatory

Impact Assessment for the proposed legislation.

ASEAN ECONOMIC COMMUNITY (AEC) ACTIVITIES The ASEAN Economic Community (AEC) is an ambitious project to turn a region of more than

600 million people, with annual GDP of over $2 trillion, into a single market and production

base. To support Lao PDR with AEC integration, USAID LUNA II supported the following

activities during the previous year:

2.4.1 Assistance with E-Signature and E-Commerce Procedures

USAID previously supported the MOST/DIT in implementing the Law on Electronic

Transactions (ETL), which provides the framework for e-commerce and e-signatures, a key

aspect of the AEC and in developing a single window. In the previous year USAID LUNA II

assisted with developing the full implementing regulations for digital secure service providers, a

key aspect of the law and which enables the use of foreign e-signature providers and establish


regulatory processes for registering and managing digital signature certification services, as well

as related capacity building. USAID LUNA II also conducted a capacity building workshop for

MOST officials on the ETL and on the draft regulation. USAID LUNA II is in the process of

finalizing translation of draft regulations on digital secure service providers for the Electronic

Transactions Law for MOST.

2.4.2 Assist with Disseminating E-Transactions Law

At the same time we were working with MOST in developing the ETL implementing regulations,

we were also preparing for dissemination workshops in the north, south and center of the country.

These workshops will focus on (1) providing the pubic, businesses and government more

information on how the ETL can contribute to business, contracts and e-government initiatives;

and (2) serving as a public-private dialogue forum to discuss the new draft implementing

regulations on digital secure service providers. As part of the dissemination process, we started

to finalize proofs and quotations for printing 750 copies of the E-Transactions Law. These

activities will take place in the following project year.

2.4.3 Assist with Promoting Regulatory Best Practices

Regulatory best practices include developing regulations: through an open and transparent

process; by considering costs and benefits; that regulations avoid unnecessary burdens; that

impact assessments be undertaken; and that regulations be evaluated on a periodic basis. These

practices are embodied in Laos’ Law on Making Legislation. However, the Law on Making

Legislating is relatively new and not well known by many government authorities. As such,

USAID LUNA II worked on the activities listed below and related to promoting regulatory best

practices.

2.4.3.1 Develop Implementing Regulations for Impact Assessments

LUNA supported the MOJ in developing a decision to provide a process for developing

assessment notes, including a list of regulatory best practice questions based on AEC and OECD

norms. The ADB then developed implementing regulations for undertaking economic regulator

impact assessments (RIA) of laws, which was signed by the Minister of Justice in July 2014. The

process of developing the regulations moved quickly during the gap period between LUNA

projects, so much of the planned work on providing comments on the decision was unnecessary.

2.4.3.2 Workshops on Impact Assessments

USAID LUNA II coordinated with the ADB project on RIA and invited them to participate in our

MOJ workshops on the e-Gazette with all national authorities in charge of making legislation.

The ADB presented their new RIA work. USAID LUNA II did not organize the workshops in the

USAID LUNA II work plan on gathering comments on the RIA legislation as ADB had sufficient

funding to organize the workshops themselves.

USAID LUNA II worked with MOST and MOIC in better understanding the RIA guidelines and

developing RIAs for new legislation under consideration (e.g., e-transactions and safeguards).

We also had discussions with MOIC, MOJ and ADB on the possibility of adding a gender

component to the RIA, which doesn’t currently have any gender analysis – this is under

consideration for coming quarters but appears too difficult to include at this point in time as the

RIA regulations were recently finalized. The Minister of Industry and Commerce spoke with


USAID LUNA II about doing some capacity building events around the RIA requirements, but

upon further discussion with MOJ, a new ADB project focused on building capacity on RIA will

be launched in June 2015, so USAID LUNA II will not likely provide much support in this area,

but will coordinate closely with MOJ and the ADB project to define any possibly synergies.

2.4.3.3 Support Implementation and Awareness of Law on Making Legislation

The Law on Making Legislation established important requirements for transparency, efficiency

and participation in the legislative development. These steps include a requirement that all

legislation of general application at the national and provincial level be published in the Official

Gazette for 15 days before coming into force and that all such draft legislation have a 60-day

public comment period. However, it is evident through initial discussions that many ministries are

not following procedures set forth in the new law. USAID LUNA II supported increased

dissemination of the law in order to ensure it is implemented as intended. This year, meetings

with provincial government officials and other authorities were held in all 17 provinces in Laos in

order to start preparation of workshops in the north, center and south with MOJ to raise provincial

officials’ awareness of trade legislation.

USAID LUNA II’s Franck Boulin also developed a one-week training course for government

officials on how to draft legislation (in coordination with UNDP). This occurred during March

23-27, 2015. The 5-day course included approximately 30 officials from MOJ and the legal units

of each line ministry. A second set of training will occur on March 30-April 3 for approximately

30 more officials. Through this course we were able to work with Rupert Haw, Managing

Director of DFDL and Sivath Sengdouangchanh from Allen And Gledhill, two prominent Law

Firms in Vientiane, on a pro-bono basis.

Dr. Boulin also provided comments on the Law Making Manual currently being produced by

UNDP.

2.4.4 Support on the Lao National Single Window

LUNA supported development of a draft government decree to establish and implement the

national single window. Plans for a private single window operator slowed the approval of draft

government decree. During the past year, USAID LUNA II continued supporting the Department

of Customs in updating the draft decree. During his trip to Vientiane from 6–12 July 2014, Bill

Luddy worked closely with Customs on the decree for Lao National Single Window (LNSW),

including holding a small workshop at Customs on the decree.

2.4.5 Train Judges on New Legislation

Lao PDR has approved increasingly technical laws and regulations to meet WTO and ASEAN

requirements. USAID LUNA II worked with the Department for Research and Training of the

Supreme People’s Court (SPC) to survey judges from around the country on their level of

awareness of IPR and of any cases that had been brought to the SPC. This was used to plan the

workshops on IP enforcement during the last quarter of the project year. During the last quarter

USAID LUNA II’s IP specialist worked with the SPC to develop IPR case guidelines for SPC

judges.


We worked closely with the SPC to organize a study tour the Philippines to learn how judges in

other countries handle IPR cases. This study took place from March 1-7, 2015. 8 SPC officials

and one Customs official participated in the study tour. The Philippines was selected in part

because of the similarity to their enforcement guidelines and those the Lao SPC began drafting

with USAID LUNA II’s IP specialist. The study team returned to Laos invigorated and have

committed to establishing a division of the Commercial Chamber of the SPC to handle IPR

issues. They are also interested in setting up a National Committee on IP. USAID LUNA II is

working with the SPC to schedule a follow-up workshop to discuss the lessons learned and

complete drafting their IP enforcement guidelines. We are also considering development of a

glossary of trade and economic terms with GIZ in Lao for the judges (and other government

officials). As discussed previously, we developed a draft training agenda on the ETL for the

SPC, which we will aim to run in May 2015.

U.S.–LAO PDR BILATERAL TRADE AGREEMENT ACTIVITIES

Built in large part on aspects of WTO agreements, the BTA was a stepping-stone in Lao PDR’s

WTO accession. Many BTA requirements/obligations for both Lao PDR and the United States

have been met but in some major areas they have not: (1) development of a private sector dispute

settlement process for international contracts (2) accession to the International Union for the

Protection of New Varieties of Plants (UPOV) Convention, and (3) better access to the U.S.

market for products from Lao PDR.

2.5.1 Provide Assistance on IPR

As discussed earlier in Section 2.3.1, USAID LUNA II’s Judy Goans worked on numerous

provisions to provide IPR related assistance. In addition, discussions on plant variety protection

and beefing up protection of IPR for agricultural research were held, which is important for an

agriculturally based economy like Lao PDR, especially one with diverse agricultural genetics.

During the first part of 2015, we began working with MOST to develop implementing regulations

on plant variety to join UPOV as well as public consultations to enable MOST to join the Madrid

Protocol on Trademarks.

2.5.2 Private Sector Dispute Resolution

During the previous year, USAID LUNA II had a meeting with LNCCI to discuss the possibility

of building capacity of LNCCI to offer dispute resolution services. Currently, only the

Government, through the MOJ Center for Economic Dispute Resolution MOJ/CEDR, offers

dispute resolution services. The Law on Resolution of Economic Disputes, which was developed

with support from LUNA, allows for private sector dispute resolution however there are currently

no private sector dispute resolution service providers operating in Lao PDR. The bylaws of

LNCCI also allow LNCCI to offer such services but no specific articles detailing how LNCCI

will offer the services have yet been developed. We worked with LNCCI to develop private

sector arbitration rules for LNCCI so that LNCCI may offer arbitration services. We will support

LNCCI as needed in the coming quarters on related capacity building to help them build the

necessary capacity to offer dispute resolution services.


2.5.3 Export Opportunities

Accession to the WTO and the US-Lao BTA is about increasing trade between the two partner

countries. However trade between the two countries is still low – U.S. exports to Laos in 2014

were US$ 26.6 million and Lao PDRs exports to the U.S. in 2014 was US$ 28.7 million (see

Table below). While growing, this represents a huge potential for increasing trade between the

two countries. Our BPS survey will help to identify some key aspects of trade awareness and

perceptions that can help create some concrete and focused activities for which USAID LUNA II

can lend its support to increase access to markets. The survey report will be released and

discussed in April 2015.

Table 2-4

US – Lao PDR Trade ($ million)

ACTIVITIES FOR POLICIES, LAWS AND REGULATIONS FOR A COMPETITIVE ECONOMY

USAID LUNA II was available during the previous year to respond quickly to requests by line

ministries and the National Assembly to support the development of legislation and procedures

that facilitate efficiency in a private-sector-driven market economy.

2.6.1 Support National Assembly on Legislative Reform

As outlined in 2.3.7, the National Assembly (NA) asked USAID LUNA II for input on the

Standards Law, and on the draft Customs Law currently under consideration in the National

Assembly. Issue papers on both standards and on customs were developed and shared with the

National Assembly to help better inform their decisions. We also offered to continue the

assistance started under the previous project to support the Inter-Session meetings, but the NA

already had support for the meetings through current donors. It appears as if other donors will

support the Inter-Session meetings going forward, so there may not be a need for USAID LUNA

II support, perhaps only in specific cases where there is legislation that is considered by the NA

that was supported by USAID LUNA II.

TRADE CAPACITY BUILDING ACTIVITIES As Lao PDR modernizes legislation, the ability of the central and provincial governments and

private sector organizations to understand and implement laws and regulations is essential.

USAID LUNA II will limit its work in legislative drafting to areas already outlined while

simultaneously building capacity to implement laws and take full advantage of the benefits

afforded by trade agreements.

2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Exports (Laos to US) 28.7 30.5 30.5 58.9 59.1 43.4 42.4 20.0 8.7 4.2 3.4 4.2 2.7 2.7 3.7

Imports (US to Laos) 26.6 24.4 33.6 26.1 12.6 20.3 18.3 5.5 5.5 7.0 9.8 5.9 4.7 4.1 3.6

% Change Exports from 2000 - 2014

676%

% Change Imports

from 2000 - 2014 639%


2.7.1 Develop Certificate in Commercial Diplomacy

A Certificate in Trade Policy can provide a framework for organizing USAID LUNA II’s trade

capacity building and economic governance efforts. Such courses are being implemented at the

Middlebury Institute of International Studies at Monterey and the Institute for Trade and

Commercial Diplomacy (ITCD) and have detailed course syllabuses and teaching modules

prepared.

During the previous year, USAID LUNA II mobilized Geza Feketekuty, the creator of the

Commercial Diplomacy Certificate Program, and Robert Rogowsky, a professor at the

Middlebury Institute of International Studies at Monterey, to travel to Vientiane from November

22 to December 3 to present the program and work on developing a plan for its implementation.

The curriculum was modeled after the ITCD certificate program and utilizes the online ITCD

course modules. Courses include: introduction to economic diplomacy, political economy of

trade—policy and institutions, trade theory & practice, policy analysis, international financial and

capital markets, international trade law and dispute resolution, quantitative methods for trade

policy, international trade negotiation simulations, comparative business-government relations,

professional writing and communication, and data analysis. The certificate program’s structure

was designed to be able to add courses and topics as necessary and requested by counterparts.

Certificate program participants would be selected based on nominations from the government

and private sector. Courses would be offered online and in-country by professors and experts. In

addition to the core group of students, for in-country training, courses will be opened to anyone

interested in learning the topic.

USAID LUNA II staff had preliminary discussions with MOIC/FTPD on the certificate program.

In response to initial comments, USAID LUNA II developed a concept note explaining program

goals, structure and curriculum for MOIC. We are still in discussions with MOIC/FTPD on the

structure and content of the certificate and will work to finalize the program in the coming year.

2.7.2 Public Sector TCB and Awareness

USAID LUNA II assisted in improving the ability of the concerned government authorities at

central and provincial level to administer and adjudicate equitable economic laws and regulations

through workshops and training sessions. USAID LUNA II supported a wide range of capacity

building and awareness raising workshops on Lao PDR’s international trade commitments (see

Table 2-1). During the previous year, we supported the following activities:

2.7.2.1 Workshops on WTO, AEC, BTA and on New Laws and Legislation

This year we supported the workshops presented in Table 2.1 below. We also began expanding

training and workshops for the provinces. For instance, with MOIC/DIMEX, USAID LUNA II

helped to organize a workshop in Sayaboury province during February 18-19, 2015 and in

Xiengkhouang from 17-18 December 2014. The workshops were designed to help issue

certificates of origin that meet ASEAN requirements and to issue the certificates in an expeditious

manner. During the final quarter we had a meeting with MOH on organizing public consultation

workshops on new draft trade-related Food Law regulations - (1) import, (2) export, and (3) food

business registration regulations. We are also discussing with the ministry the possibility of

support the two-day workshops for Food Law dissemination for officials in different provinces of

Laos as well as disseminate ASEAN Food Safety requirements in July or August this year in


three regions of Laos – central, northern and southern parts. Additional details will be provided

by MOH in the coming months.

Table 2.1

Workshops and Trainings Supported by USAID LUNA II in Year 1

Activity Date Counterparts Place

Project Review Committee—review of work plan 15 August 2014 MOIC/ FTPD Vientiane Capital

Workshop on Standards Law with MOST and

National Assembly

11 July 2014 MOST and National

Assembly

Vientiane Capital

Workshop on WTO and AEC dissemination 8 August 2014 MOIC Vientiane Capital

Workshop on government action plan for post-WTO

accession

19 August 2014 MOIC Vientiane Capital

Workshop on improving the E-Gazette (end users) 20 August 2014 MOJ Vientiane Capital

USPTO training 23–27 June 2014 MOST Washington, DC

Workshop on improving the E-Gazette (government) 21 August 2014 MOJ Vientiane Capital

Internal Meeting of the Drafting team Committee on Safeguards Law to discuss about the Work Plan

21 Oct 2014 MOIC/FTPD Vientiane Capital

Workshop on Safeguards 23 Oct 2014 MOIC/FTPD Vientiane Capital

Workshop on improving the E-Gazette

(government)

14,16,21,24 Oct 2014

MOJ Vientiane Capital

Workshop and Exhibition New Innovation in Metrology

28 – 29 Oct 2014 MOST/DSM Myanmar

Workshop on Gender Mainstreaming 14 Nov 2014 MOIC/FTPD Vientiane Capital

Workshop on Gender Mainstreaming 18-19 Nov 2014 MOJ LuangPrabang

Training on Electronic Transactions and Electronic Signature

3-4-5 Dec 2014 MOST/DIT Vientiane Capital

Workshop on Draft Implementing regulation of digital signature

8-9 Dec 2014 MOST/DIT Vientiane Capital

Workshop on Dissemination of RO and collection statistics on the issuing of CO in Lao PDR

17-18 Dec 2014 MOIC/DIMEX Xiengkhouang

Intellectual Property Enforcement Guidelines Workshop

2 Feb 2015 SPC Vientiane Capital

Dissemination Workshops on International Economics Integration

5 Feb 2015 MOIC/FTPD Vientiane Capital



Workshop on the Preparation, Adoption and Application of Technical Regulations

6 Feb 2015 MOST/DSM Vientiane Capital

Workshop on Dissemination of Rules of origin and

collection statistics on the issuing of CO in Lao PDR

18-19 Feb 2015 MOIC/DIMEX Xayyaboury Province

IPR Study Tour 1-7 Mar 2015 SPC Philippines

Workshop on Drafting Legislation 23-27 Mar 2015 MOJ Vientiane Capital

Workshop on Submitting Provincial Legislation for

Southern Provinces (OG)

26-27 Mar 2015 MOJ Champasak province

2.7.3 Private Sector TCB, Awareness and Dialogue

As Lao PDR strengthens its legislation and rule of law, businesses are increasingly subject to

arms-length application of regulations and administrative procedures. Accordingly, businesses

want to be involved in developing trade policies that affect their activities, to understand the

implications of trade agreements, to take advantage of opportunities, and to compete more


effectively. During the past year, we began work on the following activities that will enhance

opportunities for the private sector to understand and engage in trade policy development:

2.7.3.1 Survey of Businesses on Trade Opportunities

The Business Perceptions Survey (BPS) work builds on the World Bank Enterprise Surveys and

the GIZ Enterprise Survey by offering a more narrowed focus on businesses’ level of engagement

in and perspectives to international trade. The BPS was developed in close collaboration with

LNCCI. Feedback on the survey questionnaire was also sought from USAID LUNA II’s gender

specialist Gretchen Bloom. The survey design intended to include proportional representation of

women-owned businesses but this was not possible due to the limited data included in the sample

list.

Bruce Bolnick, and Phil Rourk designed the survey and conducted analysis of the survey

responses. Our local subcontractor Enterprise Development Consultants (EDC) worked with

USAID LUNA II’s consultants to pre-test the questionnaire, and train survey enumerators. From

November 2014 – January 2015 EDC completed 287 interviews with selected sample firms. EDC

also worked with USAID LUNA II to check for consistency and possible input errors. USAID

LUNA II’s translator and communications manager worked together to translate responses to the

7 open-ended questions.

Data analysis and report drafting occurred during February and March of 2105. During analysis

data was disaggregated by sector, province, firm size and gender ownership. Key findings

include: (1) the importance of imports as an input for businesses in Laos – most discussions about

benefits from trade focus on exports, but the survey confirms that exports are just half the

equation; (2) the significance of indirect exports via third party sales and linkage effects; (3) the

extent of gender equity in the business sector in Laos - nearly half of the respondents, that

provided data on gender, in the BPS were firms with majority female ownership (47%) with

about 41% of women-owned firms saying they were involved in export activities; (4) the extent

of positive perceptions about trade — despite a huge lack of knowledge about the policies and

international agreements; and (5) the methodological difficulty of defining a sample and

implementing a survey that is actually representative of businesses in the country – starting from

a low base of private sector firms but anticipating growth of firms as a result of economic

governance and trade reforms implemented by the Government of Lao PDR.

The report will be released in April during a launch event schedule to take place on April 22 that

is being planned by USAID LUNA II with LNCCI. Additionally, USAID LUNA II is looking

into ways to use the findings to inform future activities. The survey found that there is a strikingly

low level of knowledge about trade policies and trade agreements. The two most frequent

selections of sources of information were news on the radio and TV and through the press or

other printed media. In the next year USAID LUNA II intends to use these sources more often

and is considering developing a series of short videos that could raise the level of trade policy

knowledge.

Also related to the BPS was the inclusion of questions about USAID awareness that were

incorporated into the questionnaire at USAID’s request. This data was sent to USAID in February

and USAID LUNA II is currently analyzing the data and preparing a short report.


2.7.3.2 Seminars to Educate Businesses on International Trade Opportunities

USAID LUNA II, with LNCCI is planning to use the findings to design seminars that will

educate businesses on international trade opportunities. Particular focus will be given to working

with the Lao Women’s Business Union for women business entrepreneurs. Following the survey

report launch event and discussions in April, plans will be made to schedule public outreach

workshops on international trade opportunities.

3 Monitoring & Evaluation Update

DATA COLLECTION/QUALITY ISSUES

USAID LUNA II collected virtually all of our planned M&E indicators but has faced challenges

collecting reliable data for indicator number two, “number of consultations that have been

conducted with relevant stakeholders to obtain feedback on policies, law, regulations, systems

and procedures affecting commerce.” This indicator seeks to collect data on formal or semi-

formal meetings held between the GOL and its stakeholders to obtain feedback. The GOL is

under no mandate though to share with USAID LUNA II the number of meetings they conduct

with the stakeholders, and to date, the project has encountered difficulties identifying a reliable

source(s) within the GOL for this information. The project will continue to forge relationships

with GOL officials and key offices in hopes of encouraging the sharing of this type of

information with USAID LUNA II in future. We will be able to report on consultations that are a

direct result of USAID LUNA II activities and support (for example we will support MOST/DIT

on consultation events on the draft regulation on secure digital service providers).

In November, the M&E Plan was updated to change indicators 5 & 6 to focus only on businesses

and remove the word citizens. This was due to issues of simultaneously collecting data on

businesses and citizens, since the BPS was designed for firms. To compensate for this it was

agreed that USAID LUNA II would conduct interviews with civil society organizations. During

this period, it was decided that to monitor civil society’s awareness of trade policy, interviews

would be conducted with representatives from 10 registered non-profit associations (NPAs), and

that small group discussions would occur with members from 5 additional NPAs. The

questionnaires for this study were completed this period and it is expected that interviews will

take place during the next reporting period. A short report will be produced and is intended only

for internal M&E purposes.

In preparing for the fourth quarterly report, a more rigorous internal data quality check was

performed. This process included reviewing data reported to date to determine if and where

double counts were included in the earlier reported numbers. Through this process, we discovered

that earlier reported numbers for training attendees included some double counting of attendees.

In some cases, LUNA II staff was included in the count, and in other cases, if training lasted more

than one day, attendees were sometimes counted more than once.

All attendee data has now been thoroughly reviewed by several staff members, corrections have

been made and are now reflected within this report. In cases where earlier reported numbers have

changed, notes have been inserted to identify these changed numbers. Moving forward, a process

wherein all attendees names are entered on an excel spreadsheet will now be part of the data


collection process. By doing this, it will be easier to identify and eliminate attendees who may

have been double counted in the past.

In addition, as a result of changes to the definition of project indicator 3 (number of commerce

laws and regulations simplified and implemented in accordance with international standards as a

result of USG assistance) in the most recent revision of the M&E Plan in Nov 2014, several items

reported in the past were removed as they did not meet the new definition. Notes to that end are

included in the reporting section, Appendix A

STAFF AND SUB-PARTNER TRAINING ON ISSUES RELATED TO M&E SYSTEM STRENGTHENING

In mid-October, USAID LUNA II staff members were trained on the USAID LUNA II M&E

system and each staff member’s respective role will be outlined in the process to ensure collective

understanding and to ensure a strong M&E system in USAID LUNA II. It is evident that an

additional local staff member will be required to handle M&E issues as the workload is too much

for current staff. We are in the process of hiring a local M&E officer Ratsouda Rattanavong to

handle this task.

ANTICIPATED M&E PLAN REVISION AND CONTENT TO BE REVISED

The USAID LUNA II M&E Plan was originally submitted to USAID on June 16, 2014. A

revised plan, incorporating USAID input, was re-submitted on August 21, 2014 and a final

revised plan was submitted on November 11 and USAID LUNA II and was approved by USAID

Traditionally an M&E Plan is revised and updated annually. To that end, USAID LUNA II will

update the current plan, incorporate any needed changes and re-submit the M&E Plan to USAID

in June 2015.

Additional M&E Information is in Appendix B.

Table 9-1

Workshops and Training Events Supported by USAID LUNA II in 2014


USPTO training 23–27 June 2014 MOST Washington, DC

Workshop on Standards Law with MOST and National Assembly

11 July 2014 MOST and National Assembly

Vientiane Capital

Workshop on WTO and AEC dissemination 8 August 2014 MOIC Vientiane Capital

Project Review Committee—review of work plan 15 August 2014 MOIC/ FTPD Vientiane Capital

Workshop on government action plan for post-WTO accession

19 August 2014 MOIC Vientiane Capital

Workshop on improving the E-Gazette (end users) 20 August 2014 MOJ Vientiane Capital

Workshop on improving the E-Gazette (government) 21 August 2014 MOJ Vientiane Capital


(Government)

14 Oct 2014 MOJ Vientiane Capital

Workshop on Improving E-Gazette 16 Oct 2014 MOJ Vientiane Capital




Internal Meeting of the Drafting team Committee on Safeguards Law to discuss about the Work Plan

21 Oct 2014 MOIC/FTPD Vientiane Capital

Workshop on Safeguards 23 Oct 2014 MOIC/FTPD Vientiane Capital

Workshop and Exhibition New Innovation in

Metrology

28 – 29 Oct 2014 MOST/DSM Myanmar

Workshop on Gender Mainstreaming 14 Nov 2014 MOIC/FTPD Vientiane Capital

Workshop on Gender Mainstreaming 18-19 Nov 2014 MOJ Luang Prabang

Training on Electronic Transactions and Electronic Signature

3-4-5 Dec 2014 MOST/DIT Vientiane Capital


8-9 Dec 2014 MOST/DIT Vientiane Capital

Workshop on Dissemination of RO and collection

statistics on the issuing of CO in Lao PDR

17-18 Dec 2014 MOIC/DIMEX Xiengkhouang

Table 9.2

Workshops and Trainings Supported by USAID LUNA II in January – March 2015


Intellectual Property Enforcement Guidelines Workshop

2 Feb 2015 SPC Vientiane Capital





Workshop on the Preparation, Adoption and Application of Technical Regulations

6 Feb 2015 MOST/DSM Vientiane Capital

Workshop on Dissemination of Rules of origin and collection statistics on the issuing of CO in Lao PDR

18-19 Feb 2015 MOIC/DIMEX Xayyaboury Province

IPR Study Tour 1-7 Mar 2015 SPC Philippines

Workshop on Drafting Legislation 23-27 Mar 2015 MOJ Vientiane Capital

Workshop on Submitting Provincial Legislation for Southern Provinces (OG)

26-27 Mar 2015 MOJ Champasak province

Table 9-3

Technical Meetings Supported by USAID LUNA II in 2014

Subject

Relationship

with BTA,

WTO, AEC Date Counterparts Purpose Place

Draft Standards Law WTO 9 June MOST Review law Vientiane


NSW decree WTO 7 July Customs Review decree Vientiane

Draft Standards Law WTO 17 August MOST Review law Vientiane

Publishing provincial legislation in E-Gazette

WTO 19 August MOJ Discussion Luang Prabang

Draft Standards Law WTO 16-17 Oct MOST/DSM Review law Vientiane


WTO 27 Oct MOJ Discussion Champasack


WTO 28 Oct MOJ Discussion Savannakhet


WTO 30 Oct MOJ Discussion Khammouane


Subject

Relationship

with BTA,


Publishing provincial legislation in E-

Gazette

WTO 31 Oct MOJ Discussion Bolikhammsay


Gazette

WTO 17 Nov MOJ Discussion Bokeo


Gazette

WTO 18 Nov MOJ Discussion LuangNamtha


WTO 19 Nov MOJ Discussion Oudomxay


WTO 20 Nov MOJ Discussion Phongsaly


WTO 26 Nov MOJ Discussion Xiengkhouang


Gazette

WTO 28 Nov MOJ Discussion Huaphan


WTO 3 Dec MOJ Discussion Attapue


WTO 4 Dec MOJ Discussion Sekong


WTO 5 Dec MOJ Discussion Saravan


Gazette

WTO 24 Dec MOJ Discussion Xayyabouly


Gazette

WTO 26 Dec MOJ Discussion Vientiane

Province

Table 9-4

Technical Meetings Supported by USAID LUNA II in 2015 (Project to Date)

Subject

Relationship

with BTA,


Working Section for IP Enforcement

Guideline (Internal Reform and Drafting Team)

WTO 9–12 Feb SPC Drafting Law Vientiane

Province


4 Financial and LOE Expenditures

Financial Expenditures

Type of Expenditure Amount of Expenditure ($)

Total Ceiling Amount

Total Obligations

Expenditures from March 24 – March 30

Cumulative expenditures to date

Remaining unexpended balance

As of the end of March 2015, USAID LUNA II has spent approximately of its obligation,

representing of the total contract ceiling.

LOE Expenditures

Type of Expenditure Amount of Expenditure (days)

Total Ceiling Amount

LOE from March 24 – March 30

Cumulative expenditures to date

Remaining unexpended balance

As of the end of March 2015, USAID LUNA II has spent approximately of the total LOE

ceiling. A list of technical LOE used is included in Appendix D.

A P P E N D I X A : M & E P R O G R E S S O N I N D I C A T O R S A - 1

Appendix A: M&E: Progress on Indicators

PROGRESS ON INDICATORS

USAID LUNA II ACTIVITY OBJECTIVE: Strengthen the capacity of the Government of Lao PDR to comply with and fulfill commitments

made under three trade agreements, improve economic governance, and lay the foundation for a modern market economy

Indicator IR

Additional

Information

Baseline

(&

Source)

Target Actual Targets

Y 1 Q4

Q1+Q2

+Q3

To

date %t Y 2 Y 3 Y 4 Y 5 LOA

1. Number of proposed laws

and/ or rules affecting

commerce notified in

advance to the public using

the Official Gazette system

as a result of USG assistance

* 0 0 0 0 0 - 2 3 4 3 12

2. Number of consultations

that have been conducted

with relevant stakeholders to

obtain feedback on policies,

law, regulations, systems and

procedures affecting

commerce

* Q2: Workshop on

Standards Law with MOST

and National Assembly

Q3. Workshops with

Stakeholders on Safeguards

Law

0 0 0 2 2 200% 4

5 7 8 24

3. Number of commerce IR 1 Q2:1. Law on Standards

0 0 0 13 1 100% 1 3 3 1 8

3 In the previous two quarters, three items were reported for this indicator. As a result of a data quality assessment this past quarter and a more thorough review of the recently changed definition of

indicator 3, both the “Electronic Transaction Law – Implementing Regs on Digital Service Providers” and “Decree on NSW” have been removed as they do not conform to the updated definition.


Indicator IR

Additional

Information

Baseline

(&

Source)


Y 1 Q4

Q1+Q2

+Q3

To


laws and regulations

simplified and implemented

in accordance with

international standards as a

result of USG assistance

4. Number of organizational

systems improved

IR 2 0 0 0 0 0 - 1 2 1 1 5

5. Percentage of awareness 4

of businesses of economic

and trade policies and

opportunities 5

IR 3 Awareness:

35%

Opportunities:

69%

(LNCCI

survey)

- - - - - - A:

45%

O:

71%

- A:

55%

O:

75%

A:

55%

O:

75%

6. Percentage of engagement

of businesses in economic

and trade opportunities

IR 3 Exports67:

44%

Imports8:

79%

(LNCCI

survey)

- - - - - - E:

46%

I:

80%

- E:

48%

I:

81%

E:

48%

I:

81%

4 LNCCI BPS survey question asked was “Are you aware of any or all of the following issues pertaining to international trade policies and practices of Lao PDR?”

The Scale was: 1 = Well Informed of It; 2 = Aware of it (I know some contents); 3 = Heard of it (I do not know any of the contents); 4 = No knowledge or information about it.

5 The LNCCI BPS survey questions asked was “Taking into consideration various trade agreements that provide preferential treatment for imports of goods from Lao PDR, do you see any prospect for

new and/or increased export sales"

6 “Exports” was defined as “Goods or services produced in Laos that are sold to individuals, companies or other customers who are residents of a foreign country. In the case of tourism and other

services, the sale may take place in Laos, but is considered an export sale if the buyer is not a resident of Laos” 7 The LNCCI BPS survey question asked was “This year is your company selling any of its products or services to customers or clients who normally reside outside of Lao PDR, either directly or

indirectly (via a third-party)” 8 The LNCCI BPS survey question asked was “ Excluding fuel do your operations depend to any significant extent on supplies of foreign-made imports of goods or services? (dis-regard minor items

such as office supplies, cleaning fluids etc.)”


Indicator IR

Additional

Information

Baseline

(&

Source)


Y 1 Q4

Q1+Q2

+Q3

To


7. Average number of

comments from the private

sector and civil society per

proposed rule filed affecting

commerce as a result of the

project assistance

IR 3 0 0 0 0 0 - 2 3 4 5 5

8. Number of person hours

of training completed in

trade and investment

capacity building supported

by USG assistance

CC Q4: SPC Official Study our

to Philippines

(10participants x 32.5hrs of

training)

Q3: 24-.MOST Officials

Study Tour to Myanmar (2

participants x 12 hours of

training)

Q2: 120- MOST Officials

Study Tour to USTPO (3

participants x 40 hours of

training)

0 80 325 144 469 596% 240 160 80 0 560

Context Indicators

A: Ease of Doing Business

Rank

World Bank ranking of ease of

doing business ranking

155

(World Bank

Doing

Business

report - 2014)

- 155

148 143 139 137 137

B: Annual growth of

manufactured goods

(Manufactured Goods from the

current year – Manufactured goods

from the previous) / Manufactured

goods from the previous year.

-6% (2013)

(US Comrade

database)

- -6% (2013) - - - - -

C: Annual growth in exports

of agricultural products

((“All food items” from the current

year + “Agricultural raw materials”

from the current year) - (“All food

items” from the previous year +

“Agricultural raw materials” from

the previous year)) / (“All food

items” from the previous year +

“Agricultural raw materials” from

the previous year)

-7% (2013)

(US Comrade

database)

- -7% (2013) - - - - -


Indicator IR

Additional

Information

Baseline

(&

Source)


Y 1 Q4

Q1+Q2

+Q3

To


D: United States trade in

goods with Laos

Import and export data as compiled

and reported by the US Census

Bureau from Jan to Dec of each

year

$24.4 (m)

Imported

from US;

$30.5 (m)

Exported to

US.

(USITC

statistics)

- 28.5 (m) Imported from U.S. (2014)

32.9 (m) Exported to U.S. (2014)

- - - - -

E: Regulatory Quality Score World Bank Worldwide

Governance indicators - Dimension

4

22.5

(World Bank

statistics)

22.5 (2013) - - - - -

INDICATOR 2 – DISAGGREGATED BY TYPE

Activity

Relationship

with BTA, WTO

and AEC Date Counterparts

# Participants

(Male/Female) Type

Workshop on Standards Law with

MOST & National Assembly

WTO July 11, 2014 MOST & National Assembly Total: 40

M: 24

F:16

Law

Workshop on Safeguards Law by

MOIC/FTPD

WTO October 23, 2014 MOIC/FTPD Total: 16

M: 12

F: 4

Law

INDICATOR 3 – DISAGGREGATED BY STAGE

Activity Counterparts Date Stage

Law on Standards MOST/DSM Week of Oct 13, 2014 (signed by President) Implemented


INDICATOR 5 – AWARENESS, AVERAGED:

Number

of

Policies

Total of Full

Sample

Responses

Percent

Average of

Full Sample

Total Number of

Responses of 50% Women

Owned Businesses

Percent Average

of 50% Women

Owned Businesses

Average Number of

Responses of Majority

Male Owned Businesses

Percent Average

of Majority Male

Owned Businesses

3

(see below) 272 35 % 94 26 % 178 44%

3 Policies:

1. Lao PDR membership in World Trade Organization (WTO)

2. Lao Membership in ASEAN

3. General System of Preferences for Lao Exports to U.S.A. and Other Countries

INDICATOR 5 – AWARENESS, DISAGGREGATED BY POLICY AND SEX:

Awareness of

Businesses of

Economic & Trade

Policies and

Opportunities

Full Sample

Responses Total

Total

Percent

of Full

Sample

(257)

Responses

of 50%

Women

Owned

Businesses

Total of

50%

Women

Owned

Businesses

Percent of

50%

Women

Owned

Businesses

(121)

Responses

of Majority

Male

Owned

Businesses

Total of

Majority

Male

Owned

Businesses

Percent of

Majority

Male

Owned

Businesses

(136)

Lao PDR membership in World Trade Organization (WTO)

Well Informed 20 104 40%

7 34 28%

13 70 51%

Aware of it 84 27 57

Lao Membership in ASEAN

Well Informed 36 134 52%

9 49 40%

27 85 63%

Aware of it 98 40 58

General System of Preferences for Lao Exports to U.S.A. and Other Countries

Well Informed 5 34 13% 1

11 9% 4

23 17% Aware of it 29 10 19


INDICATOR 5 – OPPORTUNITIES, DISAGGREGATED BY SEX:

Total

Number of

Responses

Percent

of Total

(257)

Number of Responses of

50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

See Prospects for

New/Increased Export

Sales

178 69% 85 70% 93 68%

INDICATOR 6 – EXPORTS, DISAGGREGATED BY SEX:

Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

Direct and Indirect

Export Sales 112 44% 51 42% 61 45%

INDICATOR 6 – EXPORTS, DISAGGREGATED BY PERCENT OF TOTAL SALES AND SEX:

Percent of Total

Sales

Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

No Direct of Indirect

Export Sales 145 56% 70 58% 75 55%

1-9% 5 2% 3 2% 2 1%

10-19% 10 4% 5 4% 5 4%

20-29% 5 2% 2 2% 3 2%

30-39% 12 5% 6 5% 6 4%


Percent of Total

Sales

Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

40-49% 5 2% 2 2% 3 2%

50-59% 7 3% 1 1% 6 4%

60-69% 1 0% 1 1% 0 0%

70-79% 9 4% 4 3% 5 4%

80-89% 11 4% 6 5% 5 4%

90-99% 22 9% 14 12% 8 6%

100% 25 10% 7 6% 18 13%

INDICATOR 6 – IMPORTED INPUTS, DISAGGREGATED BY SEX:

Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

Use of Imported Inputs

for Business Operations 202 79% 89 74% 113 83%

INDICATOR 6 – IMPORTED INPUTS, DISAGGREGATED BY TYPE OF INPUT AND SEX:

Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

Not using imported

inputs 55 21% 32 26% 23 17%

Count of Respondents 202 79% 89 74% 113 83%


Total

Number of

Responses

Percent

of Total

(257)


50% Women Owned

Businesses

Percent of 50%

Women Owned

Businesses (121)

Number of Responses

of Majority Male

Owned Businesses

Percent of Majority

Male Owned

Businesses (136)

using imported inputs

Raw Materials 79 31% 32 26% 47 35%

Semi Finished 42 16% 15 12% 27 20%

Packaging Materials 50 19% 25 21% 25 18%

Technical Services 54 21% 14 12% 40 29%

Production Equipment 98 38% 32 26% 66 49%

Spare Parts 84 33% 25 21% 59 43%

Finish Products for

Resale 89 35% 51 42% 38 28%

INDICATOR 8 – DISAGGREGATED BY SEX

Activity

# Participants

(Male/Female) Training Days Hours per day of training

Total person hours

(Male/Female)

MOST Officials Study Tour

to USTPO

3 M

0 F

5 8 120 M

0 F

MOST/DSM Official Study

Tour on Standards workshop

in Myanmar

2 M 0 F

2 6.5 (First day)

5.5 (Second day)

24 M 0 F

SPC Official Study Tour on

IPR in Philippines

9 M

1 F 5 6.5

292.5 M

32.5 F


LOWER LEVEL INDICATOR TRACKER

Activity/Indicator

Y1

Target Actual

Projected Targets

Y2 Y3 Y4 Y5 LOA

IR 1: Improved GOL Compliance with Trade Agreements

Number of consultative meetings between GOL and private sector/CSOs regarding

draft WTO-related legislation

0 0 1 2 1 1 5*

IR 2: Improved Ability of GOL authorities to effectively and equitably develop, implement and adjudicate economic laws and regulations

Number of workshops/conferences held relevant to achieving requirement of WTO,

AEC or BTA

12* 19 12* 12* 12* 12* 60

Number of GOL staff trained/mentored 0 1729 50 50 50 50 200*

Number of ministries where capacity built 0 2 1 1 1 0 3

Number of pieces of legislation or regulations designed to address WTO, AEC

and/or BTA concerns drafted

0 5 1 2 1 1 5*

IR 3: Enhanced roles of civil society organizations, including private sector, Chamber of Commerce and business associations, to actively and inclusively engage

in trade policy development

Number of seminars held on international trade opportunities 1 0 3 2 0 0 6*

Number of workshops held with business associations to discuss and promote

advocacy

1 0 1 0 0 0 2*

Number of public-private dialogues/workshops for MSMEs held in 5 provinces 0 0 2 3 0 0 5*

Cross-cutting

Number of participants attending USAID LUNA II workshops/conferences/

dialogues/trainings

50 509 Total

(266 M

243 F)

75 100 100 75 400

*Specified in contract as deliverables

9 As a result of more thorough data quality checking, this number has been reduced from what was reported in the third quarter which stated 369 staff in this indicator. This total included some double

counting.

A P P E N D I X B : C A P A C I T Y B U I L D I N G E V E N T S

B - 1

Appendix B: Capacity Building Events

Workshops and Training Events Supported by USAID LUNA II in Year One, disaggregated by quarter and including

participant data

Activity

Relationship with

BTA, WTO, AEC Date Counterparts

No. of

Participants

(Male /

Female) Place

1st and 2nd Quarter Project Year 1

USPTO training WTO 23–27 June MOST Total: 3

M: 3

F:0

Washington, DC

Workshop on Standards Law with MOST and National Assembly

WTO 11 July MOST and National Assembly

Total: 40

M: 24 F: 16

Vientiane Capital

Workshop on WTO and AEC dissemination

WTO, AEC 8 August MOIC Total: 62

M: 15 F: 47

Vientiane Capital

Project Review Committee—

Review of Work Plan

(Work Plan) 15 August MOIC/FTPD Total: 30

M: 17 F: 13

Vientiane Capital

Workshop on the government

action plan for post-WTO Accession

WTO 19 August MOIC Total: 39

M: 27 F: 12

Vientiane Capital

Workshop on improving E-

Gazette (end-users)

WTO 20 August MOJ Total: 74

M: 59

F: 15

Vientiane Capital

Workshop on improving E-

Gazette (government)

WTO 21 August MOJ Total: 66

M: 44

F: 22

Vientiane Capital

3rd Quarter Project Year 110

Workshop on improving the E-

Gazette

WTO 14 October MOJ Total: 28

M: 21

F: 7

Vientiane Capital

Workshop on improving the E-

Gazette


M: 16

F: 8

Vientiane Capital

Workshop on improving the E- WTO 21 October MOJ Total: 21 Vientiane Capital

10 As a result of more thorough data quality checking some of the numbers in this 3rd quarter section have been reduced from

what was reported in the 3rd Quarter Report. The previous totals included some double counting of participants for multiday

workshops.

B - 2 U S A I D L U N A I I A N N U A L R E P O R T ( 2 0 1 4 - 2 0 1 5 )

Activity

Relationship with


No. of

Participants

(Male /

Female) Place

Gazette M: 15

F: 6

Internal Meeting of the Drafting

team Committee on Safeguards

Law to discuss about the Work Plan

WTO 21 Oct MOIC/FTPD Total: 19

M: 11 F: 8

Vientiane Capital



M: 15

F: 6

Vientiane Capital

Workshop on Safeguards WTO 23 Oct MOIC/FTPD Total: 12

M: 9 F: 3

Vientiane Capital

Workshop and Exhibition New Innovation in Metrology

WTO 28 - 29 Oct MOST/DSM Total: 2

M: 2

F: 0

Myanmar

Workshop on Gender Mainstreaming

Trade Capacity 14 Nov MOIC/FTPD Total: 21

M: 5

F: 16

Vientiane Capital

Workshop on Gender Mainstreaming

Trade Capacity 18 -19 Nov MOJ Total: 40

M: 22

F: 18

Luang Prabang

Province

Training on Electronic

Transactions and Electronic Signature

Legal reform 3, 4, 5 Dec MOST/DIT Total: 15

M: 8

F: 7

Vientiane Capital


Legal reform 8 - 9 Dec MOST/DIT Total: 20

M: 9

F: 11

Vientiane Capital

Workshop on Dissemination of

RO and collection statistics on the issuing of CO in Lao PDR

WTO 17 - 18 Dec MOICT/DIMEX Total: 20

M: 11

F: 9

Xiengkhouang

4th Quarter Project Year 1

Intellectual Property

Enforcement Guidelines Workshop

WTO 2 Feb SPC11 Total: 17

M: 12 F: 5

Vientiane Capital

Dissemination Workshops on

International Economics Integration

WTO, AEC 5 Feb MOIC/FTPD Total: 182

M: 96 F: 86

Faculty of Law

and Political Science, NUOL

Dissemination Workshops on

International Economics Integration

WTO, AEC 6 Feb MOIC/FTPD Total: 155

M: 43 F: 112

Pakpasak

Technical College

Workshop on the Preparation,

Adoption and Application of

Technical Regulations

WTO 6 Feb MOST/DSM12 Total: 35

M: 19

F: 16

Vientiane Capital

Workshop on Dissemination of

Rules of origin and collection statistics on the issuing of CO in Lao PDR

WTO 18 - 19 Mar MOIC/DIMEX Total: 43

M: 32

F: 11

Xayyabouly

Province

11 Participants trained included officials from MOST and NUOL

12 Participants trained included officials from MAF, MEM, MOJ, MOFA, MPWT, MONRE, MOIC, MOH

A P P E N D I X B : C A P A C I T Y B U I L D I N G E V E N T S

B - 3

Activity

Relationship with


No. of

Participants

(Male /

Female) Place

IPR Study Tour WTO 1-7 Mar SPC13 Total: 10

M: 9

F: 1

Philippines

Workshop on Drafting

Legislation

WTO 23-27 Mar MOJ14 Total: 29

M: 20 F: 9

Vientiane Capital

Workshop on Submitting

Provincial Legislation for Southern Provinces (OG)

WTO 26-27 Mar MOJ Total: 38

M: 35 F: 3

Champasak province

1st and 2nd Quarter Total Total: 314

M: 189 F: 125

3rd Quarter Total15 Total: 243

M: 144 F: 99

4th Quarter Total Total: 509

M: 266 F: 243

Project Year One Total Total: 1,066

M: 599 (56%)

F: 467 (44%)

Technical Meetings Supported by USAID LUNA II in Year One

Subject

Relationship

with BTA,




NSW decree WTO 7 July Customs Review decree Vientiane

Draft Standards Law WTO 17 August MOST Review law Vientiane

Publishing provincial legislation in E-Gazette WTO 19 August MOJ Discussion Luang Prabang

Draft Standards Law WTO 16 - 17 Oct MOST/DSM Total: 13

M: 8 F: 5

Vientiane Capital

Publishing provincial legislation in E-Gazette WTO 27 Oct MOJ Total: 12

M: 9 F: 3

Champasack


M: 11

Savannakhet

13 Participants trained included officials from MOST, MOF and NUOL

14 Participants trained included officials from MOJ, GOL, MOND, PO, MPT, LNFV, MOF, MOIC, VUDAA, CBI, LRC,

LFNC, MEM, MOH, LYU and BOL

15 As a result of more thorough data quality checking this number has been reduced from what was reported in the 3rd Quarter

Report. The total for this quarter was previously reported as 438 Total (M:270, F:168). This total had included some double

counting

B - 4 U S A I D L U N A I I A N N U A L R E P O R T ( 2 0 1 4 - 2 0 1 5 )

Subject

Relationship

with BTA,


F: 2

Publishing provincial legislation in E-Gazette WTO 30 Oct MOJ Total: 13 M: 10

F: 3

Khammouan


M: 8

F: 4

Bolikhamxay

Publishing provincial legislation in E-Gazette WTO 17 Nov MOJ Total: 19

M: 8

F: 11

Bokeo

Publishing provincial legislation in E-Gazette WTO 18 Nov MOJ Total: 16 M: 10

F: 6

Luang Namtha


M: 9

F: 5

Oudomxay


M: 6 F: 5

Phongsaly


M: 11

F: 3

Xiengkhouang

Publishing provincial legislation in E-Gazette WTO 28 Nov MOJ Total: 11 M: 8

F: 3

Houaphan

Publishing provincial legislation in E-Gazette WTO 3 Dec MOJ Total: 13

M: 12 F: 1

Attapeu


M: 10 F: 11

Sekong


M: 11

F: 0

Saravan

Publishing provincial legislation in E-Gazette WTO 24 Dec MOJ Total: 11 M: 9

F: 2

Xayabouly

Publishing provincial legislation in E-Gazette WTO 26 Dec MOJ Total: 12 M: 10

F: 2

Vientiane province

Working Section for IP Enforcement Guideline

(Internal Reform and Drafting Team)

WTO 9-12 Feb SPC16 Total: 10

M: 8

F: 2

Vientiane

Capital

Project Year One Total Total: 181 M: 123 (68%)

F: 58 (32%)

16 Participants trained included officials from MOST and NUOL

A P P E N D I X C : L E V E L O F E F F O R T

C - 1

Appendix C: Level of Effort

Name

LOE Used

(days)

LOE

Approved

(Days) Approval Dates Counterparts Purpose

Short-term

Mark Walter 33 USAID LUNA II-14-002

& 011 4/24/14-5/14/14 Admin Start-up

Franck Boulin 13 USAID LUNA II-14-002 4/24/14-5/9/14 Admin Start-up

Stephen Parker 7 USAID LUNA II-14-003 5/10/14-5/15/14 Admin Start-up

Erica Dunmire 191 USAID LUNA II-14-005 6/2/14-6/13/14 Admin M&E Plan

Jacqueline Frank 15 USAID LUNA II-14-010 5/25/14-6/8/14 Admin Communications Plan

Louise Williams 39 USAID LUNA II- 14-011 6/8/14-6/23/14 Admin Baseline Assessment

Stewart Pierce-Gardner 28 USAID LUNA II- 14-011 6/1/14-6/2/14 Admin Home office project support

Stewart Pierce-Gardner 26 USAID LUNA II- 14-011 6/1/14-6/2/14 Admin Baseline Assessment

Ed Nemeroff 60 USAID LUNA II-14-013

USAID LUNA II-14-026

6/5/14-6/14/14

10/1/2014-

10/22/2014

MOST-DSM Law on Standards

Bill Luddy 25 USAID LUNA II-14-012 7/1/14-7/12/14 MOJ & NSW National single window (NSW) & E-transactions

Stephen Creskoff 30 USAID LUNA II-14-029 10/9/2014 –

1/31/2015 MOIC Law on Safeguards

John Adams 25 USAID LUNA II-14-032 10/27/2014-

12/15/2014 MOST Electronic Transactions Law

Gretchen Bloom 33 USAID LUNA II-14-033 11/7/2014-11/23/2014

MOIC & Admin Gender Plan

Judy Goans 70 USAID LUNA II-14-037 11/15/2014-

11/30/2015 MOST IPR Compliance

Robert Rogowsky 20 USAID LUNA II-14-031 11/20/2014-

12/3/2014 MOIC/FTPD Trade Certificate Program

Geza Feketekuty 20 USAID LUNA II-14-031 11/20/2014-12/3/2014

MOIC/FTPD Trade Certificate Program

Bruce Bolnick 45 LUNAII-15-002 9/15/2014 –

1/30/2015* LNCCI Business Perceptions Survey

Phil Rourk 45 LUNAII-15-002 9/15/2014 –

1/30/2015* LNCCI Business Perceptions Survey

Long-term

Ashok Menon LT 226 USAID LUNA II-14-

006 LT Admin Chief of Party

Franck Boulin LT 121 USAID LUNA II-14-

019 LT Admin Senior Legal Advisor

Totals (1st Quarter, CY 2014, and Project) Total: 9 Short-term

A P P E N D I X B : C A P A C I T Y B U I L D I N G E V E N T S B - 2

U.S. Agency for International Development

1300 Pennsylvania Avenue, NW

Washington, DC 20523

Tel: (202) 712-0000

Fax: (202) 216-3524

www.usaid.gov

usaid luna ii

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