SMEs hone competitive edge ahead of AEC integration
SMEs hone competitive edge ahead of AEC integration
Laos is seeking positive integration with other Asean nations by encouraging SMEs to improve their competitiveness ahead of the onset of the Asean Economic Community this year.
Officials from line ministries, private businesses and enterprises and international donors met at the 7th Trade and Private Sector Working Group Meeting in Vientiane yesterday to hear the results of a recen t business survey and discuss business integration.
Deputy Minister of Industry and Commerce Mr Somchith Inthamith co-chaired the meeting alongside EU Charge d'Affaires to Laos Mr Michel Goffin and German Ambassador to Laos Mr Michael Grau.
In his opening speech, Mr Somchith said the Lao economy has broadly benefitted from more than a decade of efforts to strengthen the foundations of the economy.
“Our potential is now being further enhanced by steps to intensify regional economic integration,” he said.
The Ministry of Industry and Commerce would be a key agency for facilitating discussions on issues around the realisation of the AEC blueprint.
The key priorities of 2016 will include the promotion of SME development, green economy, greater connectivity, and other essential issues.
“That's why we need strong support from all our development partners, public sector agencies and the private sector,” Mr Somchith said.
He said the SME sector plays a significant role in economic development and job creation but large multi-national companies are required to work alongside the SME sector to support the regional production network.
“As the AEC approaches, the private sector, especially SMEs, need to have a better understanding of the AEC and its associated advantages and challenges,” Mr Somchith said.
He also noted that the meeting specifically focus on SMEs and trade integration, and the competitiveness of merchandise and service products.
At the meeting, Chief-of-Party for the USAID Laos-US International and Asean Integration project, Mr Ashok Menon, made a presentation on the findings of the Business Perception Survey – Trade Liberalisation.
The survey was designed to gain understanding on how local businesses are experiencing, perceiving, and adjusting to the opportunities and challenges created by trade integration.
A team from the World Bank also gave presentations about a report on the preliminary findings of ongoing research on the labour impacts of trade in Laos.
The objective of this study is to analyse the circumstances under which a trade shock can benefit or harm labour through changing labour demand and the resulting impact on employment and wages.
The transport issue was also highlighted at the meeting in relation to trade integration, which if properly developed would enable Laos, a landlocked country, to become a land-linked country.
The perception survey revealed that a small number of firms understand the benefits of AEC integration and a small percentage acknowledge the importance of WTO membership.
However, many firms are still keen to continue to improve operational efficiency, product quality, worker training, and packaging and marketing materials.
