Laos promotes low interest business funding

VIENTIANE – The government is continuing to comply with the directions of the Party and the instructions given by the Lao president on the creation of an independent, self-reliant economy.

As part of the practical implementation of this initiative, a meeting to discuss ways to provide low interest funding took place, to support the Party’s resolution to build an independent economy and the President’s plan to spur economic self-reliance in a bid to tackle the country’s ongoing financial issues.

The meeting discussed the sourcing and provision of credit to promote domestic production in order to meet local consumer demand and produce more goods for export, as well as boosting productivity to reduce the need for imported goods.

Among those attending the meeting were the Minister of Industry and Commerce, Acting Governor of the Bank of the Lao PDR, deputy ministers, the Vice Mayor of Vientiane, and business representatives.

A report on the operations of the Enterprise Promotion Fund was delivered and recommendations made for the direction of future plans, as well as an update on the previous provision of credit to support production.

Business operators shared opinions on current domestic production and credit supply, including the potential, limitations and challenges in the public and private sectors.

Meeting participants expressed their support for the creation of a low interest fund through participation by businesses with sufficient economic strength to promote systematic and stronger domestic production, based on transparency, fairness and sustainability.

At the close of the meeting, Prime Minister Sonexay Siphandone summarised the main points covered and general consensus of participants and advised the Ministry of Industry and Commerce and the Bank of the Lao PDR on the direction to be followed.

He instructed them to set up a production promotion fund with low interest rates that could be implemented efficiently and effectively to strengthen the operations of micro, small and medium-sized businesses.

The premier also directed the ministry and other relevant bodies to promote production on a commercial basis and attract more investment from abroad.

He advised them to identify more markets for manufacturers, improve regulations, reduce unnecessary barriers to facilitate business operations, and summarised a proposal by the business sector on ways to find immediate solutions to the various issues they faced.

In addition, PM Sonexay instructed business leaders to develop their operations through more use of technology and new innovations to increase productivity, thus saving time and money, while modernising the operations of all businesses and associated entities.

“More knowledge and managerial skills are needed in the business sector. Most importantly, businesses must fulfil their obligations and conduct business in accordance with the law, and contribute as much as possible to national development, especially the effort to resolve Laos’ economic and financial problems,” the prime minister said.