Lao business operators facing tough challenges
Lao business operators facing tough challenges
Business operators in Laos are still struggling with issues that hinder their progress due to poor policy implementation.
One man trying to make headway in the construction business, Mr Bounleuth Luangpaseuth, described some of the problems that he and others are facing.
The government has established a single-window service to facilitate trade and provide assistance with business registration, but the implementation of this system has been delayed, he told Vientiane Times recently.
Anyone wanting to set up a business must wait a long time to get approval, which delays the process, while other countries spend much less time on such procedures, thereby giving their entrepreneurs a competitive advantage.
This loss in time forces people to spend more money to register their business and also leads to corruption to speed up the process.
The government has enacted good policies for investment promotion and trade facilitation in order to integrate with regional and international markets, but the measures have not been carried out efficiently in practice, Mr Bounleuth said.
Lao businesses are also thwarted by high interest rates and limited government funding. Additionally, a lack of skilled human resources means that very often technicians must be brought in from abroad, further raising the cost of operations and costing Lao people much needed jobs.
Skills and labour development programmes are limited compared to other countries in the region, he explained.
Lao workers will experience fewer opportunities for employment if the government does not invest in improving their skills and abilities, Mr Bounleuth said.
Importing high cost materials from overseas is also a major issue for businesses operating in Laos.
The country is currently integrated within the Asean Economic Community but actual policy implementation that promotes the goals of the organisation is still severely limited.
These issues are the main problems for Lao entrepreneurs in carrying out their businesses. If these issues aren't addressed quickly, the country will not be able to compete with other Asean member states.
The private sector is the primary generator of jobs for Lao people and is essential in contributing to socio-economic development, so the government should pay more attention to assisting entrepreneurs.
The country's inability to address these chronic issues means that many projects are postponed indefinitely, while others never come to fruition and are eventually sold off to foreign investors.
In the end, that means fewer businesses in the hands of Lao nationals, fewer jobs for Lao workers, and slower socio-economic development for the whole country.
