Product development essential for global markets
Product development essential for global markets
Increasing international market demands and the need to integrate with the Asean Economic Community (AEC) are driving the Trade and Product Promotion Department's development of policies to encourage entrepreneurs.
The department, supported by the Asean- Japan Centre, last week organised a seminar on successful pathways for Lao products to the global market, which attracted relevant government officials and a variety of business entrepreneurs.
The aim of the seminar was to increase understanding about trade and export issues between government and entrepreneurs to further cooperation and help promote an increasing number of Lao products to the global market.
It also provided an opportunity for participants to share their experiences in product development to standards matching domestic and foreign markets.
Laos will integrate with the AEC by the end of this year resulting in increasing competition for entrepreneurs across all sectors of the economy meaning they'll have to improve their products to compete.
“In previous years, export values to the global market continued to increase, especially the Japanese market, Trade and Product Promotion Department Acting Director General,” Mr Phan Vilaysom said.
“In 2008 the value of exports to the Japanese market reached US$80 million, increased to over US$100 million in 2010 and was about US$250 million last year,” he reported.
Most products were handicraft products such as fabrics, wood products, plus coffee and tea, he explained.
However, many businesses are concerned about looming competition once the nation integrates with the AEC especially quality standards and investment capital requirements.
“To help businesses prepare the government has formulated promotion plans so people can understand more about the AEC by revealing information about regional economic integration and international markets as well as integration regulations to people from the central to local levels,” said the Foreign Trade Policy Department Deputy Director General, Mr Xaysana Xayakone.
Creating the mechanisms to improve coordination systems between the different sectors from central and local levels is also required to ensure equality.
To compete in the Asean market the nation will rely greatly on the potential of small and medium enterprises (SME) producing goods and services for export and authorities are keen to give support to facilitate their access to finance and marketing programmes.
The government will also improve regulations to facilitate the establishment of more businesses and their operation as well as encourage human resource development in different sectors to ensure a workforce of sufficient quality and quantity.
