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The Launch of an ILO Enterprise – Lao PDR Initiative on the Development of Sustainable Enterprises
With the launch of ILO technical advice assignment to the “SME Access to Finance Project”, the ILO will continue to contribute to the development of sustainable enterprises in the Lao PDR through the capacity building for its SMEs and other stakeholders.
On September 14, 2018, the ILO enterprises team from Geneva, Bangkok and Laos, along with the constituents from the Lao People's Democratic Republic, witnessed the launch of ILO technical advice assignment to the “SME Access to Finance Project” in Vientiane, Lao PDR, funded by the World Bank. The ILO technical advice assignment will strengthen Small and Medium Enterprises (SMEs) business management capacities in the Lao PDR.
The launch workshop had more than 80 participants from various sectors. The Government was represented by the Deputy Minister of Industry and Commerce of Lao PDR who also officially launched the Partnership and delivered a key note address. The private sector was represented by Lao National Chamber of Commerce and Industry. Mr. Vic van Vuuren, the director of the Enterprises Department of the ILO, made a speech on behalf of the ILO at the launch.
The SME capacity building is implemented in partnership with the Ministry of Industry and Commerce of Lao PDR and with support from the Lao National Chamber of Commerce and Industry. The target is to train 600 SMEs within one year to the point that they will develop an improved business plan that will in turn enable them to access funding through financial institutions.
SMEs contribute to economic development, poverty alleviation and shared prosperity in the Lao PDR. The SME sector accounts for 82 percent of total employed by registered firms. Around 86 percent of registered firms are small, most of them micro with less than 5 employees. Many Lao SMEs have limited business management skills, which is an obstacle to their sustainable growth and further job creation.
The development of a competitive and innovative SME sector is a key element in the Lao PDR’s national development strategies, as well as in the ILO DWCP for the Lao PDR and the global UN SDG target 8. The ILO contributes to the Lao PDR's SME Strategies through the capacity building for SMEs and other stakeholders.
