Finance professionals gaining insights into value chain finance
Finance professionals gaining insights into value chain finance
The government is gearing up to bolster the promotion of small and medium enterprises in the country by providing more capacity building at financial institutes, banks and microfinance institutes.
As part of the effort, a two day-long intensive training workshop entitled “Value Chain Finance” is being held in Vientiane from May 29-30, which aims to build capacity around financial management and the risks of financial provision.
Jointly sponsored by the Ministry of Finance (MOF), the International Finance Corporation (IFC) and the World Bank Group, the event drew a variety of participants including representatives from banks and financial institutes as well as lawyers and teachers at various banking institutes around Laos.
In her remarks, State Assets Management Department Director General under the Ministry of Finance Ms Kaseumsy Phommavongsa said the government is attempting to reduce poverty as well as eyeing the significant growth in the Lao economy, projected at 7.5 percent per year.
“To ensure the achievements of the development goals and remove Laos from its Least Developed Country (LDC) status by 2020, the promotion of the small and medium enterprises (SME) sector to access finance is a key,” she said.
The Director General also called for participants to actively share ideas with experts and to look towards adapting their knowledge and skills at their workplaces.
Meanwhile the President of the Lao Banker’s Association Mr Phoukhong Chanthachack said the association has a total of 12 banks from state-owned and private commercial banks, joint ventures and foreign banks.
“These commercial banks offer loans to SME as part of implementing the government’s plan for socioeconomic development from now until 2030 and its strategic development plan for financial institutions and currencies until 2025,” he said.
Despite the fact that the commercial banks and financial institutions are able to provide loans for the SME sector, the challenges for banking officers still exist, Mr Phoukhong said.
“They [financial officers] are necessary to better understand principles of finance and efficiently provide services to customers,” he said, saying that the workshop will offer them the opportunity to gain insights into value chain finance.
During the two-day long workshop, participants are learning about the key points of value chain finance as well as an overview of understanding modern value chains and the roles and the principles of value chain finance.
In addition, a wide range of issues are being instructed by foreign specialists and local trainers at the ongoing workshop, which will end today.
