Lao business environment sees improvement: survey
Lao business environment sees improvement: survey
Most Lao business people consider the business environment in the country has been improving over the past few years, according to an enterprise survey.
Deputy Minister of Planning and Investment, Mr Somchith Inthamith, Vice President of Lao National Chamber of Industry and Commerce, Mr Saman Aneka and GIZ Program Director, Mr Armin Hofmann presided over a launch ceremony of the new enterprise survey in Vientiane.
The fifth edition of the biannually conducted Human Resource Development for Market Economy (HRDME) Project Enterprise Survey shows the vast majority of business owners and managers perceive the business environment in Laos to be better than in 2011.
Around 40 percent of the enterprises also reported a better performance in their output, turnover and profit. However, this has not resulted in a similar increase in employment. More than half of all enterprises are still working with the same number of staff.
The survey also shows that the lack of management staff is now perceived as a bigger problem than in 2011. Besides this, entrepreneurs see the lack of capital as the main constraint for business development despite the growth of the banking sector.
Moreover, their knowledge and information level of the upcoming Asean Economic Community is relatively low. Therefore, most of the interviewed enterprises are focused on the local market and see domestic competition influencing their performance more than international competition.
The HRDME Enterprise Survey 2013 was conducted by the joint efforts of the Ministry of Planning and Investment, Ministry of Industry and Commerce as well as Ministry of Education and Sports, the Lao National Chamber of Industry and Commerce and GIZ.
The National University of Laos is also took part in the survey as it interviewed more than 700 companies and analysed the finding for the current edition of the survey.
The HRDME enterprise survey also sheds light on the current state of the business environment concerning the education of managers and staff, required skills for new employees and the use of business development services.
Furthermore, it also takes factors such as the facilitation of government and business organisations, tax payments, expectations and experiences on business performance and the awareness of regional agreements into account.
Observers said over the past few years the government has paid greater attention to improving the business environment as part of efforts to attract foreign and domestic investment into non resource sectors to secure sustainable growth of the Lao econo my.
At present, the Lao economy is relying on the natural resource sector including mining and hydropower, which economists say will be one day be exhausted.
vientiane times
