Study on Generating Employment through Micro and Small Enterprise and Cooperative Development in Lao PDR
4.3 Infrastructure

4.3 Infrastructure

Basic infrastructure such as power and transportation are important for the access of micro/small enterprises to internal and external markets, and for business operators to travel to gain information, contacts and ideas.

Roads are the dominant mode of transport in Laos and their development and maintenance are critical to the overall socio-economic development of the country. During 1990-1995 the government allocated more than half of its public investment budget to the transport sector. As a result about 2,000 kilometers out of a total of 21,627 kilometers of roadways were reconstructed or improved. Some transport infrastructure is still under-utilized because of its poor linkages both domestic and international. Despite heavy investment in the transport sector, the road network is still relatively underdeveloped. Only 16 per cent of national roads are in good condition. Most provincial and district roads are impassable in the rainy season, leaving many villages with no seasonal access to markets.

In the 1996 national survey, 53.1 per cent of micro/small enterprises had no utilities, 30.2 per cent had electricity only, and only 15.48 per cent had access to both water and electricity.

Figure 17. Utility access conditions of micro/small enterprises

( Source: The results of a National Survey, SMEs in Lao PDR, MIH-GTZ, 1996)

4.3 Infrastructure
Study on Generating Employment through Micro and Small Enterprise and Cooperative Development in Lao PDR

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