On July 17, the Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Yong Hwan Kim, “ Korea Eximbank”) concluded an Economic Development Cooperation Fund (EDCF)* Loan Agreement of USD 28.5 million for support of the project to install an information system for taxation in Laos.

Chairman Yong Hwan Kim of Korea Eximbank signed the loan agreement during a meeting with Finance Minister Phouphet Khamphounvong of Laos at Bank headquarters.

* EDCF is a fund providing developing countries with long-term, low-interest concessional ODA (Official Development Assistance) loans to support industrial development and economic stabilization. EDCF was established by the Korean government in 1987 to increase cooperation with developing countries. As of April 2012, EDCF has committed KRW 8.0587 trillion to 275 projects in 49 countries.

The project aims to establish a database regarding tax payments, land ownership, and vehicle registration as well as data centers in five major regions* in Laos.

* Vientiane City, Vientiane Province, Luang Prabang Province, Savannakhet Province, and Champasak Province

Completion of the project to digitize tax administration services is anticipated to enhance government efficiency and transparency as well as increase tax revenue for the respective regions.

Laos has recently opened its doors to the international community and increased participation in international economic cooperation.

In fact, this September, Laos will host the Ninth Asia-Europe Meeting (ASEM), which will be participated by high-level representatives of Asia and Europe, as the first developing country to host such an event. Laos is also slated to become a member of the WTO this year.

Korea ranks fourth in direct investments in Laos and bilateral cooperation is anticipated to grow even further. In fact, Laos selected Korea to be the site of the country’s first investment forum, a forum to be hosted by Lao Prime Minister Thongsing Thammavong.

According to the Bank, “The expansion of government infrastructure in Laos will establish a firm foundation for sustainable growth as the country increases its participation in the international community and bolster exports of Korea’s information management systems.”