Laos to strengthen SMEs ahead of AEC

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Laos store_Arno Maierbrugger
Street shop in Vientiane

The government of Laos will bolster a promotion fund designed to support small and medium enterprises (SMEs) ahead of the ASEAN Economic Community (AEC) integration in 2015, according to a report by the Vientiane Times on January 14.

SMEs Promotion Department Deputy Director General Keomolakod Sitlakone said that the government had set up the promotion fund to make it easier for SMEs to get financing. The comments came during a meeting to review Laos’ ASEAN activities in the lead up to AEC integration.

SMEs are integral to the country’s development since they represent approximately 90 per cent of business in Laos, Keomolakod said.

According to local media, it is expected more than 240 billion kip ($30 million) will be allocated to the fund.

“We have initiated discussions with the World Bank and the bank was pleased to offer support,” Keomolakod said. The contribution will come from a variety of sources including the World Bank, SMEs and other financial sources, he added.

Targeted SMEs will receive subsidised consultancy services thanks to the government’s Business Assistance Facility Fund supported by the World Bank. The Lao government has also begun the establishment of a credit fund that will guarantee loans for businesses with good profit forecasts but insufficient assets to use as a guarantee.

Seven SMEs centers run by both state bodies and business sectors have been established to provide consultation and training to business owners.

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Reading Time: 1 minute

Street shop in Vientiane

The government of Laos will bolster a promotion fund designed to support small and medium enterprises (SMEs) ahead of the ASEAN Economic Community (AEC) integration in 2015, according to a report by the Vientiane Times on January 14.

Reading Time: 1 minute

Laos store_Arno Maierbrugger
Street shop in Vientiane

The government of Laos will bolster a promotion fund designed to support small and medium enterprises (SMEs) ahead of the ASEAN Economic Community (AEC) integration in 2015, according to a report by the Vientiane Times on January 14.

SMEs Promotion Department Deputy Director General Keomolakod Sitlakone said that the government had set up the promotion fund to make it easier for SMEs to get financing. The comments came during a meeting to review Laos’ ASEAN activities in the lead up to AEC integration.

SMEs are integral to the country’s development since they represent approximately 90 per cent of business in Laos, Keomolakod said.

According to local media, it is expected more than 240 billion kip ($30 million) will be allocated to the fund.

“We have initiated discussions with the World Bank and the bank was pleased to offer support,” Keomolakod said. The contribution will come from a variety of sources including the World Bank, SMEs and other financial sources, he added.

Targeted SMEs will receive subsidised consultancy services thanks to the government’s Business Assistance Facility Fund supported by the World Bank. The Lao government has also begun the establishment of a credit fund that will guarantee loans for businesses with good profit forecasts but insufficient assets to use as a guarantee.

Seven SMEs centers run by both state bodies and business sectors have been established to provide consultation and training to business owners.

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