Vientiane – International Organization for Migration Lao PDR (IOM) and Development Research Institute (DRI), Ministry of Planning and Investment (MPI) has conducted the Launch of the Brief Policy on Remittance in Lao PDR on 29 June 2022 at Crown Plaza Hotel, Vientiane Capital. The meeting has jointly chaired by Dr. Sitthiroth Rasphone, Director General of the Development Research Institute (DRI), Ministry of Planning and Investment and Shareen Tuladhar, Chief of Mission, IOM Lao PDR. In this joint meeting, Department of Employment, Ministry of Labour and Social Welfare also participated.

The dissemination meeting of Brief Policy on Remittance in Lao PDR has been collaboratively implemented between the teams from International Organization for Migration Lao PDR (IOM) and Development Research Institute (DRI). The brief policy on remittance in Lao PDR possesses its objectives aiming to undertaking an assessment which focusing on remittance situations including the review and analysis of existing information sources, discussions, initiatives and trends on remittances in Lao PDR ; the assessment of gap and constraint of the remittance management; and recommendation to address those issues.

The brief policy launch has highlighted its key findings and recommendations as well as the priorities and future plan on remittance in Lao PDR. As Dr. Thanongsai Soukkhamthat, Deputy Director General of DRI reveals the findings that “Individual and lao labour working abroad remittance is one of the key fundamental factors of which contribute to global and regional economy including Laos and remittance to Laos is inclined to increase which significantly contribute to Lao economic growth”. In past 5 years (2017-2021), Remittance of Laotian labour to Laos numerically values on average approximately 412 million USD excluding the informal remittance that its value potentially could be doubled.

“The remittance itself does not only play the crucial role to domestic economic expansion but also benefits the life living quality of local households conducing to poverty eradication and progress of Least Developed Country Graduation of Lao PDR.” Dr. Thanongsai Soukkhamthat added.

The meeting also reveals the research of remittance of Lao labour in abroad which the team studied of 4 target villages in 2 districts, Savannakhet Province indicates that Lao labour normally remit to their households in the amount of 1/3 on average of their regular monthly salary that statistically could contribute to the local poverty eradication in a certain level if the remittance occurs constantly. However, remittance management in Lao PDR still lacks of its

supporting policies and its effective management. Meanwhile, the remitting services from local banks is complicated and inaccessible as the service banks location is far away from locals in remote areas. As a result, the issue enables the Lao labours in abroad proceed their remittance through informal money transfer service providers for instance grocery store, phone shop, gas station, and other independent online agencies who may provide services. Therefore, the transaction monitoring, protection, and promotion still could not meet its current demands.

The result of the meeting has provided a better understanding on the current situation of the remittance in Lao People’s Democratic Republic. The recommendations from the study will essentially support the remittance management improvement including the control of remittance costs, and better access to formal remittance channels through improving the legislative and regulatory frameworks that will be enabling the improved remittance governance able to contribute towards the implementation of the COVID-19 recovery plan as well as the Least Developed Country Graduation Smooth Transition Strategy of Lao Government.

***

For more information, please contact: Shareen Tuladhar, Chief of Mission, IOM Lao PDR at Shtuladhar@iom.int