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: 12 | ARCHIVED on 28-Sep-2018 | ISR34180 | 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 pdoTable 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 Components Table 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 Implementation Status and Key Decisions This Implementation Status and Results Report (ISR) is the last ISR for the Second Trade Development Facility Project (TDF-2). It updates the result indicators prior to project closure, provides an overview of recent developments, and provides a short initial assessment of overall project implementation from the task team’s point of view. There has been no formal mission following the final Implementation Support mission in May 2018 and the presented updates are based on discussions with government counterparts as part of regular implementation support activities. While the 2018 Enterprise Survey data was meant to be ready by August 2018, delays in data collection have resulted in the deadline to slip and the final data are expected to be available in November 2018. 9/28/2018 Page 1 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Overall project performance has been very strong throughout project implementation and the Project Development Objective (PDO) and Implementation Progress (IP), as well as the ratings for the three project components, remain rated as ‘Satisfactory’, in line with their consistent rating throughout project implementation from the first ISR. During project implementation, activities were generally completed as planned, and they have generated significant positive impacts. Project activities have resulted in reducing trade transaction costs, increasing transparency, increasing overall competitiveness, and contributing to a diversification of the economy as measured in through the export basket. The three PDO indicators are exceeding their target values (two of them based on the 2016 Enterprise Survey data). The time to import and to export through customs has fallen significantly, and the export portfolio of Lao PDR has diversified. Disbursements are on track as they stood at US$15.93 million (or 99 percent) on September 21, 2018 with a last withdrawal application being submitted. Advances made to the Designated Account are expected to be fully documented by the end of the application deadline (January 31, 2019). The project has made good progress with the implementation of activities agreed during the May 2018 mission, particularly in the areas of trade facilitation, bringing the SPS regulatory environment in line with WTO commitments, and improving business regulations. Key achievements include:  The Trade Facilitation Secretariat is being upgraded to be Lao PDR’s National Trade Facilitation Committee based on the PM Decision 48, dated 26 July 2018. This strengthens the role of the trade facilitation agenda.  The study assessing issues faced by Lao trade transiting through Thailand and Vietnam was completed in September 2018.  A Ministerial Decision to eliminate licensing requirement for importation of rice, cement and steel, and exportation of rice was submitted to the Minister of Industry and Commerce on September 20 and is expected to be signed by the Minister before the end of September.  Additional reviews on non-tariff measures were completed, recommending that 55 of the existing NTMs be repealed.  The drafting of five regulations for the distribution services sector has been completed, and the regulations are pending final approval.  The Minister of Public Health has issued the Agreement on Food Import-Export and Transit (No. 1166/MPS) at the end of June, completing the reforms to bring the regulatory environment in line with WTO SPS commitments supported under component A4. Final signature of the secondary legislation for the Plant Protection and Livestock laws by the Minister of Agriculture but is also expected before the end of September. 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 PDO Indicators by Objectives / Outcomes 9/28/2018 Page 2 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Improved competitiveness and diversification, focusing outside the natural resource sectors IN00613307 ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. IN00613412 ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. IN00613416 ►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 282.00 325.00 325.00 300.00 Date 01-Apr-2013 30-Dec-2016 30-Dec-2016 01-Oct-2018 Data source: COMTRADE mirror data (import data from all countries) accessed through WITS. Indicator calculated with data available as of June 2018. As of September 20, data for Vietnam and Thailand for Comments: 2017 are not yet available and therefore the indicators has not been updated for 2017 yet. Intermediate Results Indicators by Components Trade facilitation, trade policy and regulations IN00613308 ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. IN00613418 ►Increase in number of hits for Lao PDR Trade Portal (per year) (Number (Thousand), Custom) 9/28/2018 Page 3 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) 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 Comparing usage data for 2017 and the first 8 months in 2018, a similar usage average appears to be Comments: sustained. IN00613309 ►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-Jun-2018 29-Jun-2018 01-Oct-2018 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 Comments: studies and trade facilitation theory have been incorporated, while also inviting participants to present experience and challenges with their work related to trade facilitation. IN00613310 ►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 3.00 2.00 2.00 Date 01-Apr-2013 01-Jun-2018 21-Sep-2018 01-Oct-2018 The Trade Facilitation Secretariat met two times during the past 12 months, i.e. November 2017 and in Comments: May 2018. IN00613406 ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. IN00613413 ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. IN00613417 ►Cumulative number of new regulations adopted affecting the telecom sector / insurance sector / professional services (Number, Custom) 9/28/2018 Page 4 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 11.00 8.00 Date 01-Apr-2014 18-May-2018 01-Jun-2018 01-Oct-2018 The 11 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; (viii) Ministerial Guideline on Insurance Comments: Business Operating License; (ix) Regulation on Lao Certified Public Accountants; (x) Ministerial Decision on Code of Ethics for Professional Accountants; and (xi) Bylaw of the Lao Chamber of Public Accountants and Auditors. Diversification and competitiveness IN00613407 ►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 The BAF component was successfully completed end of March 2017. Comments: IN00613408 ►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 The BAF component was successfully completed end of March 2017. Comments: IN00613419 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 IN00613420 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 IN00613409 ►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. 9/28/2018 Page 5 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) IN00613414 ►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 Annual data will be available at the end of 2018. Comments: Mainstreaming aid for trade IN00613410 ►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, joint work Coordinated, joint work Coordinated, Joint planning and results planning and results work planning and Fragmented, standalone monitoring supervised by monitoring supervised Value result monitoring work programs the Trade and Private by the Trade and supervised by the Sector Working Group Private Sector Working TPSWG (TPSWG) Group (TPSWG) Date 01-Apr-2013 29-Jun-2018 29-Jun-2018 01-Oct-2018 The latest TPSWG meeting took place on March 28, 2018. Comments: IN00613415 ►Perception of Lao Business Forum’s effectiveness increased (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 94% at least 90% at least somewhat somewhat effective 60% perceive LBF as Somewhat effective 40% effective (somewhat Value (somewhat effective at least somewhat and very effective 10% effective 59%, and very 42%, and very effective effective 31%) effective 52%) Date 01-Apr-2013 26-Jul-2017 08-Sep-2017 01-Oct-2018 Latest data for this indicator are from a perception survey carried out following the 11th LBF meeting that took place on July 5. Data for the sub-indicator covers the following raised by small- and women-led enterprises: LBF-10: Value-added tax on export production, Procedures for business registration and licensing, Access to information on exports, Export of planted wood, Access to finance for small and medium sized Comments: enterprises, Shortage of silk materials and human resources; and LBF-11: two sub-issues on Trade facilitation and logistics, VAT refund for export producers, internet excise tax, Barrier to tourism development. IN00613421 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 10.00 10.00 IN00613411 9/28/2018 Page 6 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) ►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 Updated data will be available in November when the 2018 Enterprise Survey data will be released. Data Comments: are currently being collected. Data on Financial Performance Disbursements (by loan) 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 2.32 0.18 93% 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 9/28/2018 Page 7 of 8 The World Bank Implementation Status & Results Report Lao PDR Second Trade Development Facility Project (P130512) Restructuring History There has been no restructuring to date. Related Project(s) P159060-AF - SECOND TRADE DEVELOPMENT FACILITY PROJECT 9/28/2018 Page 8 of 8