SMEs to be helped by policy revision
SMEs to be helped by policy revision
Small and Medium Enterprises (SMEs) in Laos will soon be helped by improved policies aimed at driving expanding growth opportunities and access to wider markets.
The Promotion and Product Development Department (PPDD) under the Ministry of Industry of Commerce reported recently that it is revising its policies to ease SME access to markets both domestically and internationally, such as building a base of information on market processes.
The policies will ease trading by arranging the export of products, informing business about taxes, and providing health information with regard to vegetable and livestock safety standards.
SMEs should see more space to increase cooperation with larger companies as well as foreign enterprises, helping them to expand their markets.
The department said it is looking forward to creating policies that will help SMEs improve production and product quality so they are better equipped to compete in regional markets.
Encouraging SMEs that make similar products to create groups, to help them cut production costs and increase their profits in larger markets, is also on the agenda.
SMEs could have new policies that will increase promotional funding for growing their markets for occasions when they bring their products to exhibit both at home and overseas.
SMEs should also be helped by technicians and financing in each province, to encourage them to qualify for the One District, One Product trademark and make their goods more eligible for export.
A representative who works in SME promotion, Mr Sivongxay, said that if SMEs had help in entering international markets, their concerns would be eased.
Laos now shares the privileges of the Generalised Scheme of Preferences (GSP) from the European Union, which allows developing countries to pay less or no duties on their exports to EU markets.
Japan, the Republic of Korea, and China also give GSP privileges to Laos, aimed at helping SMEs here 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.
Ultimately, these policies should help Lao SMEs to boost exports as well as expand their network of business partners in overseas markets.
