Asean business summit provides valuable lessons for Lao entrepeneurs
Asean business summit provides valuable lessons for Lao entrepeneurs
Lao business operators have learnt about the growth of the global and regional economies and gained lessons from global and regional experts during the Asean Business and Investment Summit 2016 that took place in Vientiane from September 5-7.
The summit invited economic experts from Asean member countries and from Asia and Europe to highlight various issues relating to trade and investment opportunities and collaboration in the Asean region.
The business sector in Laos is the main driver of economic growth by creating job opportunities for local people and boosting national revenue, Vice President of the Lao National Chamber of Commerce and Industry, Mr Davone Phachanthavong, told reporters covering the meeting.
But most Lao business operators lack professionalism in management and operation methods compared to others in the region, he said.
A large number of Lao businesses are Small and Medium Enterprises, including family businesses, which poses a major challenge for competition and integration with regional and international markets.
To ensure that business growth is sustainable and develops in the right direction, all Lao entrepreneurs must improve their operations to adapt to regional and international standards by making greater use of technology. I advise them to learn from larger companies, Mr Davone said.
He suggested that people wanting to go into business consider franchises and distribution as a starting point so they could grow and thrive by partnering with entrepreneurs from other countries who want to set up joint ventures with local companies.
Many business operators work independently and not as part of a group, which makes it hard to survive, as many have found over the past few years.
Working as part of a group or a joint venture enables entrepreneurs to learn about sound business management and provides them with trading partners so they are better placed to compete.
Lao business operators also need easier access to low interest loans with long term repayment conditions, as well as strong support from the government.
Laos has great potential in terms of natural resources, especially in agriculture, but products and their promotion remain limited and it is still unclear which are best for local sale and export.
Countries in the region and further afield are keen to buy agricultural products from Laos but production remains low.
Laos has exported various products to neighbouring countries and to Europe but producing the required quality and quantity of these goods remains problematic.
This week's Asean Business and Investment Summit will help to strengthen cooperation and exchanges between Lao entrepreneurs and Asean business operators through the Asean Economic Community and will give young entrepreneurs a boost.
