This report was developed by GIZ through the third phase of the Lao-German Programme “Human Resource Development for a Market Economy (HRDME)”, the enterprise survey gives a deep insight into effects of laws, policies and regulation which can serve as a value input for the decision making at the diverse levels of government and private sectors. The survey have shown out ten key findings (1) Laos has experienced positive economic growth, fuelled by a natural resource boom, (2) firm’s profit and expectations are rising, (3) Lao firms in the sample view competition as weakening, (4) Those firms that do feel competitive pressure often cite access to capital and market saturation as major obstacles, (5) Firms have little to no knowledge of upcoming trade integration, leaving them vulnerable  in the medium to long term, (6) Satisfaction levels among business are high, but this could be a long run hindrance to productivity, (7) There is a noteworthy shift towards informal business practices, with fewer firms registering with the tax office and increase in lump sum tax payments versus, (8) there is high usage of business development service (BDS), but from potentially less reputable source, (9) There is positive correction between business success and business Membership organization (BMO) membership, yet a reduction in awareness, participation and satisfaction among businesses with respect to BMOs, and (10) Improved perception of local and national governance and increasing demands.

In additional, the survey was highlighting eight core policy recommendations: (1) Diversify export portfolio, (2) improve outreach and information sharing regarding upcoming free trade and economic integration, (3) Change/improve training message so that business value offerings, (4) improve the quality of BDS, (5) explore why BMO membership/popularity is warning, and develop an action plan to improve the quality of service and attract new members, (6) Streamline and reform the formal tax system so that smaller firms are less inclines to negotiate lump sum payments (7) build on recent improvements in government effective by speeding up the business registration process and (8) improve access to finance not only through lending programs but via financial literacy and business registration.

    

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1 Report on Enterprise Survey 2011 PDF
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