Govt urged to create better environment for SMEs
Govt urged to create better environment for SMEs
The government should take serious action to create a better environment for small and medium d enterprises to operate as part of efforts to sustain economic growth, according to a senior official from the Ministry of Industry and Commerce.
“The government must be a pro-business government,” SME Promotion and Development Office Director General Mr Somdy Inmixai said on Friday during a media workshop on government policy on trade and goods production held at Lao Press in Foreign Languages in Vientiane.
The workshop aimed to provide more knowledge to the Lao media so that they can produce more professional reports on business and economic development in Laos.
Mr Somdy said that many government officials must stop considering businesspeople as greedy but as the ones who help to create jobs and income for Lao people. Businesses also play an important role to drive economic growth, he said
One of the major challenges which the Lao businesses want the government to address is that government officials are still imposing a number of regulations which cost business people both time and money.
“Our business operation costs are still very high,” he said, stressing that business operations remain uncompetitive compared to neighbouring nations.
The Lao government has a policy to encourage foreign investment to boost economic growth after the country became part of the Asean Economic Community, which will establish a common market and production base for the region boasting a population of some 600 million people.
Mr Somdy said that the government needs to provide a number of services to business. For example, help them to achieve certifications such as the Good Manufacturing Practice (GMP) so that they are able to export their goods to the international market.
He said that the international markets need GPM certification as they want to see that the businesses have good management. For example, businesses must be equipped with good, clean production systems. Businesses must also not employ child workers if they wish to obtain GMP certification.
Mr Somdy said the government must also invest large amounts of money to improve the business environment and help SMEs to operate and expand their businesses, adding that the government investment projects may not be profitable but they will pay off in the end.
He explained that once sma ll and medium d enterprises see rapid expansion, people in the country will have jobs and income while the government will be able to collect more taxes. The national economy will also gain a major boost once SMEs see rapid growth.
At present, the Lao economy is based on major industries such as mining and hydropower. This kind of industry is based on the exploitation of natural resources which will one day be exhausted.
According to a report from the SME Promotion and Development Office, there are more than 126,913 SME units in Laos; 98.98 percent of SMEs were small enterprises which employ less than 19 people.
vientiane times
