Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Lao PDR Second Trade Development Facility Project (P130512) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 11 | ARCHIVED on 02-Aug-2018 | ISR33155 | Implementing Agencies: Ministry of Industry and Commerce, Lao People's Democratic Republic, Department of Imports and Exports, Ministry of Industry and Commerce, Department of Foreign Trade Policy Department, Ministry of Industry and Commerce, Ministry of Industry and Commerce Key Dates Key Project Dates Bank Approval Date:04-Dec-2012 Effectiveness Date:08-May-2013 Planned Mid Term Review Date:11-May-2015 Actual Mid-Term Review Date:01-Jun-2015 Original Closing Date:31-Mar-2017 Revised Closing Date:30-Sep-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to support the implementation of government's trade and integration priorities outlined inthe2012 DTIS Roadmap, and in particular to contribute to improved competitiveness and diversification, focusing outside the naturalresource sectors. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Trade facilitation, trade policy and regulations:(Cost $5.80 M) Diversification and competitiveness:(Cost $5.20 M) Mainstreaming aid for trade:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate 8/2/2018 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Implementation Status and Key Decisions This Implementation Status and Results Report for the Second Trade Development Facility Project (TDF-2) is based on the Implementation Support Mission that was carried out on May 14-18, 2018. Project performance is progressing well, with the Project Development Objective (PDO) and Implementation Progress (IP) rated consistently as ‘Satisfactory’ over the last 12 months. Disbursements are also on track as they stood at US$14.83 million (or 92 percent) on June 30, 2018, and are slightly beyond estimates (US$14.8 million for the end of June 2018). The budget is expected to be fully disbursed by the end of the project. Since December 2017, progress has been made across the project, particularly in the areas of trade in services and business regulations. The Mutual Recognition Agreement for accounting services is now fully operational, and the coordination mechanism for the Lao Services Portal (LSP - available at http://www.laoservicesportal.gov.la/) has been formalized. The LSP has also seen a substantial increase in usage since early February 2018 (number of monthly visits have doubled since the last quarter of 2017). The Lao Trade Portal has been upgraded and significant simplifications for company registration are under way, moving from ex-ante company registration to an ex-post system. The Minister of MOIC directed the technical departments to remove automatic licenses on key products such as rice, cement, and steel. Additional funds for the Challenge Facility have been committed, with 3 new proposals approved in 2018, reaching a total of 16 proposals. The 11th Lao Business Forum took place on July 5 and was chaired by the Prime Minister. With only 3 months remaining before the end of the project, it will be critical to finalize and approve a number of regulatory reforms that have been supported by the project but whose final approval is still pending. In addition, close budget monitoring from the NIU and the IAs will be needed. Continued high-level political support and involvement for follow-up, monitoring and project implementation is needed to achieve strong results on the ground. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators 8/2/2018 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDPDOTBL  Reduced mean number of days to clear imports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.60 2.00 2.00 5.30 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. PHINDPDOTBL  Reduced mean number of days to clear exports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 2.00 2.00 3.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. PHINDPDOTBL  Number of products at 6-digit level of the Harmonized System with exports exceeding USD 100,000 in a year (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 282.00 311.00 325.00 300.00 Date 01-Apr-2013 30-Dec-2016 30-Dec-2016 01-Oct-2018 Comments Data source: COMTRADE mirror data (import data from all countries) accessed through WITS. Indicator calculated with data available as of March 27, 2018 with data for Vietnam now available. As a result, the data point for 2016 has been corrected/updated to 325 (instead of the partial result of 311 reported in the last ISR). 8/2/2018 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Overall Comments All three PDO indicators are expected to exceed targets, and in particular the third indicator on the diversification of the economy is demonstrating clear improvements in export diversification (following updating the 2016 indicator with new available data). Intermediate Results Indicators PHINDIRITBL  Reduction in percent of firms identifying customs and trade regulations as a major constraint (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.80 7.60 7.60 2.80 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. PHINDIRITBL  Increase in number of hits for Lao PDR Trade Portal (per year) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.18 370.60 370.60 200.00 Date 31-Jan-2013 01-Jan-2018 01-Jan-2018 01-Oct-2018 Comments Comparing usage data for 2017 and the first 6 months in 2018, a similar usage average appears to be sustained. PHINDIRITBL  Successful completion rates for Trade Facilitation capacity building program (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 90.00 90.00 Date 01-Apr-2013 29-Dec-2017 29-Jun-2018 01-Oct-2018 Comments Since December 2017, two workshops have been conducted for 67 senior officers and mid-level supervisors at the provincial level. To increase the applicability of course material, more practical case studies and trade facilitation theory have been incorporated, while also 8/2/2018 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) inviting participants to present experience and challenges with their work related to trade facilitation. PHINDIRITBL  Frequency and participation of National Trade Facilitation Secretariat meetings to resolve trade facilitation issues, with decisions documented and follow up actions prioritized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 2.00 3.00 2.00 Date 01-Apr-2013 29-Dec-2017 01-Jun-2018 01-Oct-2018 Comments The Trade Facilitation Secretariat met three times during the past 12 months, i.e. in August and November 2017, and in May 2018. PHINDIRITBL  Reduction in the mean number of days required to obtain import licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.70 5.40 5.40 9.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. 8/2/2018 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Reduction in the mean number of days required for services firms to obtain operating licenses (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.70 13.60 13.60 10.10 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 01-Oct-2018 Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. PHINDIRITBL  Cumulative number of new regulations adopted affecting the telecom sector / insurance sector / professional services (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 8.00 8.00 Date 01-Apr-2014 29-Dec-2017 18-May-2018 01-Oct-2018 Comments The 8 new regulations are: (i) Prime Minister's Decree establishing the Telecom Regulatory Authority; (ii) a Ministerial Decision establishing the mandate, functions and Responsibilities of Telecom Regulatory Authority; (iii) Business licensing for telecommunications sector; (iv) Interconnections, (v) Numbering, (vi) Competition for telecommunications; (vii) Spectrum management; and (viii) Ministerial Guideline on Insurance Business Operating License. PHINDIRITBL  Sales growth in BAF supported firms compared to non-supported firms (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21.00 21.00 20.00 Date 01-Apr-2013 31-Mar-2017 31-Mar-2017 01-Oct-2018 Comments The BAF component was successfully completed end of March 2017. 8/2/2018 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Cumulative number of BAF grant approvals (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 208.00 208.00 150.00 Date 01-Apr-2013 31-Mar-2017 31-Mar-2017 31-Mar-2017 Comments The BAF component was successfully completed end of March 2017. PHINDIRITBL  Average percentage of female owned businesses among approved applications by BAF (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 34.00 34.00 30.00 PHINDIRITBL  Within those businesses, percentage of women employed (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 42.00 42.00 30.00 PHINDIRITBL  Cumulative number of garment factory labor standards assessed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 5.00 Date 01-Apr-2013 31-Aug-2017 31-Aug-2017 01-Oct-2018 Comments The Factory Standards Improvement Scheme was successfully completed end of August 2017. 8/2/2018 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Number of new company registrations per year in non-resource sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,353.00 6,707.00 6,707.00 4,657.00 Date 01-Jun-2015 29-Dec-2017 29-Dec-2017 01-Oct-2018 Comments Annual data will be available at the end of 2018. PHINDIRITBL  Improved aid for trade governance moving toward a program based approach operating under the TPSWG (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Coordinated, Coordinated, joint work Coordinated, joint work Joint work planning and results planning and results planning and Fragmented, standalone monitoring supervised monitoring supervised Value result work programs by the Trade and by the Trade and Private monitoring Private Sector Working Sector Working Group supervised by Group (TPSWG) (TPSWG) the TPSWG Date 01-Apr-2013 29-Dec-2017 29-Jun-2018 01-Oct-2018 Comments The latest TPSWG meeting took place on March 28, 2018. 8/2/2018 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) PHINDIRITBL  Perception of Lao Business Forum’s effectiveness increased (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 90% at least somewhat 90% at least somewhat 60% perceive Somewhat effective 40% effective (somewhat effective (somewhat LBF as at least Value and very effective 10% effective 59%, and very effective 59%, and very somewhat effective 31%) effective 31%) effective Date 01-Apr-2013 26-Jul-2017 26-Jul-2017 01-Oct-2018 Comments This indicator will be updated with data from a new perception survey carried out following the 11th LBF meeting that took place on July 5. PHINDIRITBL  Cumulative number of issues and concerns raised by small and women-led enterprises captured and actioned through the Lao Business Forum (Number, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 10.00 PHINDIRITBL  Increased share of firms with female management/ownership participation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 39.00 43.10 43.10 47.00 Date 01-Apr-2013 01-Aug-2016 01-Aug-2016 31-Mar-2017 Overall Comments Updated data will be available in September when the 2018 Enterprise Survey data will be released. Data are currently being collected. Data on Financial Performance Disbursements (by loan) 8/2/2018 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P130512 IDA-H8190 Effective USD 4.00 4.00 0.00 3.71 0.00 100% P130512 TF-14189 Effective USD 9.90 9.90 0.00 9.90 0.00 100% P130512 TF-A3946 Effective USD 2.50 2.50 0.00 1.30 1.20 52% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P130512 IDA-H8190 Effective 04-Dec-2012 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 P130512 TF-14189 Effective 28-Mar-2013 28-Mar-2013 08-May-2013 31-Mar-2017 30-Sep-2018 P130512 TF-A3946 Effective 19-Dec-2016 04-Jan-2017 04-Jan-2017 30-Sep-2018 30-Sep-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. 8/2/2018 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Related Project(s) P159060-AF - SECOND TRADE DEVELOPMENT FACILITY PROJECT 8/2/2018 Page 11 of 11 Public Disclosure Copy