Lao SMEs still have more markets
Lao SMEs still have more markets
Lao Small & Medium Enterprises (SMEs) will not have to be concerned that their products will not be able to access overseas markets as the country has trade relations with many nations around the globe.
Deputy Director General of the Foreign Trade Policy Department Mr Saysana Sayakone gave the assurance recently during a briefing seminar entitled ‘Turning vision into reality for a dynamic Asean Community.'
Mr Saysana explained that Laos now has privileges for the Generalised Scheme of Preferences (GSP) from the Europe Union, which allows developing countries including Laos to pay less or no duties on their exports to the EU markets in order to contribute to their economic growth.
Japan, the Republic of Korea, and China also extend privileged GSP to Laos, aiming to help Lao SMEs to be able to access their markets.
Laos has trade relations with more than 50 countries globally and had bilateral trade agreements with more than 15 countries worldwide in 2015.
These agreements are helping Lao SMEs to increase their exports as well as expand their business partnerships in overseas markets.
However, Mr Saysana stressed that Lao SMEs should continue improving their goods standards to be accepted for export.
“Laos is surrounded by five countries, especially China, so its products can grow further and larger in terms of export,” said an official at the Promotion and Product Development Department of the Ministry of Industry of Commerce.
Lao SMEs also enjoy preferential treatment in the Chinese market as well as other regions, if they can improve standards and increase production to increase their business partners' orders.
For example, some customers make larger orders and are seeking to be distributors but Lao entrepreneurs can't ensure sufficient supply to meet their demand.
Entrepreneurs still produce largely based on domestic distribution even though overseas markets need more products.
The official added that the concerned authorities are making ongoing efforts to seek overseas markets for entrepreneurs such as assisting them with market research and improving their quantity of production to meet customers' requirements.
Last year, the total trade value of Laos was recorded at US$6 billion and Asean countries were the top trade partners, according to the Foreign Trade Policy Department.
