Lao garment sector strengthens competitiveness through responsible business practices

Vientiane (ILO News) – Garment manufacturers across the Lao People’s Democratic Republic are stepping up efforts to meet global market expectations by integrating responsible business conduct (RBC) and human rights due diligence (HRDD) into their supply chains.

Organized by the International Labour Organization (ILO) and the Association of Lao Garment Industry (ALGI), the seminar on Responsible Business Conduct for garment enterprises took place on 10 December in Vientiane. The event targeted middle-level managers from garment companies and ALGI staff members, bringing together industry leaders to explore how aligning with international labour standards can drive competitiveness and long-term sustainability.

Participants learned the concept of responsible business conduct in the context of evolving global supply chains, where international buyers are placing greater emphasis on labour rights and human rights due diligence. The sessions highlighted practical approaches to identifying, preventing and mitigating risks in the workplace, emphasizing that respecting human rights is not only a compliance requirement but a significant advantage for attracting buyers and accessing markets.

“We extend our sincere thanks to the ILO and the Government of Japan for supporting this important seminar. I encourage all participants to actively apply the knowledge gained here to strengthen the sustainability and competitiveness of our garment industry”, said Phimmasone Aminthalath, Vice President of ALGI.

The garment sector is a major employer in the Lao People’s Democratic Republic, particularly for women. The seminar drew 59 participants, including 35 women.

Government officials from the Ministry of Industry and Commerce and the Tax Department also attended, providing updates on Value Added Tax reimbursement procedures and the Generalized System of Preferences status as the country prepares for its anticipated graduation from Least Developed Country (LDC) status.

“Promoting responsible business conduct is important for creating decent work and building sustainable enterprises in the Lao People’s Democratic Republic. Through this seminar, I hope the garment sector will be able to translate international labour standards into workplace actions that benefit both employers and workers”, said Viengprasith Thiphasouda, ILO National Coordinator in Lao People’s Democratic Republic.

The seminar was conducted under the ILO’s Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II) project, funded by the Ministry of Economy, Trade and Industry of Japan. The project supports enterprises and tripartite constituents in the Lao People’s Democratic Republic to promote responsible and sustainable business practices that align with national law and the principles of international labour standards, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

© ILO

© ILO