The Department of Promotion of Small and Medium size Enterprises expresses its apprehension on the control of quality and quantity which is still a big problem for Exports by Lao Entrepreneurs. There is a requirement for businesses to match the diversity and meet market needs. SME specialists believe that matching the needs of the market is the best solution in order to create confidence, increase quality and competition leading to integration in the ASEAN Economic Community (AEC).
Mr. Southchay Sisouvong, Deputy Director of the Department of Promotion of Small and Medium size Enterprises, Ministry of Industry and Commerce said, at the National Workshop on SME cluster development and export consortia formation for the organic rice and vegetable sector organized by the Economic Institute for Trade on 20 August 2013, that the enhancement of the development and promotion of Lao SME’s is supported by New Zealand and is aimed at enabling the expansion of production for export to ASEAN and other countries. Therefore, there is a need for a discussion on matching the needs of the market particularly in the production of rice and organic vegetables including setting up committees and planning the development of production groups for export and being able to extend these to the local level in the next stage in order to direct SME’s to move to the trading stage in the region on the basis of diversified factors that create added value and solutions.
Dr. Ms. Nithtaya Southiseng, the specialist on SMEs development, Mekong Institute has stated to the Economy-Trade press that Lao PDR has potential in various ways to be competitive internationally but still lacks of enhancement aspects for diversity explanation. Therefore, entrepreneurs need to improve their business ability in terms of quality and standards in order to be competitive internationally and, as the produce is mostly from small enterprises, meet the abundant market quantity demands.
In addition, Dr Southiseng also emphasized that business entrepreneurs mostly have not yet diversified in order to create added value, quality and networks, therefore they should be widely open to learning, exchange knowledge and believed that matching the needs to the business will open opportunity for helping each other in many ways that can direct SMEs to integrating at an international level. Dr Southiseng will definitely support dissemination of knowledge in order to form, build up and develop the group to support SME’s with gaining access to regional markets and help business entrepreneurs access buyers internationally.
Moreover, the participants to the meeting also discussed and exchanged knowledge on the development of the SME group, the analysis of the value added chain and factors related to group development, creating an understanding and deriving benefit from the development of the group for exporting, creating the quality of goods and observing the export market in order to be ready for integration in the ASEAN Economic Community.
Information Source: Economy-Trade Newspaper, Issued on 21 August 2013
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