Challenges remain in SMEs promotion
Challenges remain in SMEs promotion
The Lao government is implementing the 2011-15 development plan for Small and Medium Enterprises (SMEs) to ensure it will effectively contribute to the country's socio-economic development.
Deputy Director General of the SMEs Promotion Department Mr Sa Siriphong told Vientiane Times yesterday that 99.8 percent of SMEs had contributed to the economic development in Laos.
“That is the reason why the government has created a concrete plan to support the further development of SMEs in Laos,” Mr Sa said.
He explained that there were seven major plans to promote the development of SMEs in Laos but it was basically related to the access to funds, funding for new entrepreneurs and other development plans.
“Accessing funds is still challenging for Lao entrepreneurs so the government is working hard on seeking proper solutions for them to ensure they can operate their businesses smoothly,” Mr Sa said.
When the country integrates with the Asean Economic Community in 2015, Laos is expected to face challenges, competition and business opportunities.
To enable local businesses to become stronger and more competitive with the regional businesses, the government sector along with public and private individuals recently met to discuss how value chain development is important to business operations in Laos.
“If we carefully study development chains of each product, we will come across weaknesses and try to find an appropriate solution to it,” he said.
He noted that the necessity of the value chain approach was to get Lao produce to improve and be accepted by the regional market and approach international standards.
A solid database for promoting value chain development of products in Laos was also discussed to support a dding value to products.
The use of tools in value chain development can also be beneficial for the development of SMEs in Laos.
The Ministry of Industry and Commerce's SMEs Promotion Department is also planning to fund new entrepreneurs with 50 percent of the capital when they are about to commence a business operation, Mr Sa added.
The government is also targeting new entrepreneurs to ensure they own a business rather than being an employee for other companies.
“Since the inception of the development plan of SMEs, we can't clarify which SMEs hold outstanding achievements in Laos because it depends on the capacity of each community,” he said.
vientiane times
