SME service centre to promote regional business integration
SME service centre to promote regional business integration
An official inauguration of the first ever Small and Medium Enterprise s (SMEs) Service Centre (SSC) � aiming at improving the environment for SMEs to do business in Laos as well as improving access to their markets took place in Vientiane last Friday.
The SSC office, established at a cost of US$100,000 is located at the Lao National Chamber of Commerce and Industry (LNCCI).
It was established under the joint efforts of the SME Promotion Department of the Ministry of Industry and Commerce, Lao National Chamber of Commerce and Industry (LNCCI) and supported by the Regional Economic Integration of Laos into Asean, Trade and Entrepreneurship Development (RELATED) project of Lao-German Development Cooperation.
Speaking at the opening ceremony, President of the Lao National Chamber of Commerce and Industry (LNCCI) Mr Oudet Souvannavong said Small and Medium Enterprises (SMEs) cover 98 percent to 99 percent of all enterprises in Laos.
�That is the reason the government is trying to promote SMEs by outlining the decrees on SME promotion in 2004. In 2011, the decree has been upgraded into the Law on SME Promotion in a bid to strengthen SMEs in Laos,� he said.
He went on to say that over the past 12 years, the regulatory environment and governmental management of business operations and the flow of SME businesses is becoming more lively.
�It is hoped that the launch of the SSC will offer the opportunity for all kinds of SMEs, especially for start-ups. Within three years, another SSC office will be expanded to other provinces in Laos,� Mr Oudet said.
He also added that SSC will also strengthen the capacity of Lao SMEs to integrate with regional and international competitors.
Meanwhile LNCCI Executive Vice President Mr Daovone Phachanthavong also spoke to the media representatives, highlighting that the SSC will provide more opportunities for Laos' businesses and start-ups to connect with other Asean member countries.
�The SSC office will house many experienced trade experts from the Ministry of Industry and Commerce to provide businesses and start-ups with new updates on SME connectivity through the seminars and training sessions,� he said.
He also said that the SSC will help in teaching foreign languages for those businesses that are keen to upgrade their language skills for better communication with their business partners.
According to Mr Daovone, samples of SME products, brochures of their companies and business cards of various SME entrepreneurs will be on display at the centre.
Asean SMEs face a number of challenges in terms of access to finance, technology, and competitive markets.
The promotion of SME businesses in Laos is not yet effectively implemented due to a number of challenges, however Asean member states are working on addressing these challenges to assist SMEs to mitigate these issues.
The Asean Strategic Action Plan for SME Development 2016-2025 serves to strengthen SME engagement in an increasingly competitive economic environment and to support their growth and development through the vision of �Globally Competitive and Innovative SMEs�.
It is hoped that by 2025, Asean will be in a position to create more globally competitive and resilient SMEs.
