Laos - New Guidelines on Public Service Expenditure

The Government of Lao has issued guidelines for the use of the state budget for public service expenditure. The guidelines were contained in the Prime Minister's decree on purchasing, construction and maintenance costs and services. Under the decree, Government agencies must favour locally-produced goods over those made by foreign companies when allocating budgets. Moreover, they should give priority to goods which are produced by state-owned firms, rather than private enterprises.

Under Article 26, Chapter 5 of the Prime Minister's decree No. 94 it states that "If foreign companies are also competing in the process of purchasing merchandise, and if the prices quoted by foreign companies are the same as local companies, the latter must be answered. If the quoted process of state-owned companies are the same as other competing companies, the former must be awarded".