Khamphone Syvongxay, Vientuane Times May 26, issue 122
The Ministry of Planning and Investment and Lao-German Human Resource Development for a Market Economy (HRDME) last week launched a survey report for research into business performance in Laos based on 2009 data. Enterprise Survey 2009 (ES 2009) was put together to assess the impact of the HRDME programme as well as measuring changes in enterprise performance and identifying constraints in the sample. The survey gathered data from the tax register which last year recorded about 84,000 enterprises for Laos. Interviews were carried out in three selected districts in Luang Prabang, Luang Namtha, Savannakhet and Champassak provinces and in Vientiane from June to July 2009, covering 728 enterprises in total.
The survey revealed progress in the business environment shown by higher levels of satisfaction with government support among business owners and managers, as well as with the shorter time needed to register an enterprise. The report also states that the impact of the global financial crisis on the Lao economy, while limited, affected larger companies more than small and mediumsized enterprises. Limited competiveness of Lao enterprises on international markets, access to business finance and business management skills, particularly in smaller enterprises, and inadequate technical and vocational skills in the labour force remain the major constraints to the sector. The survey had five main objectives: to determine changed values of project indicators compared to the 2005 to 2007 period; identify changes in business environment and performance compared to 2005 and 2007; assess the impact of the global financial and economic crisis of 2008-2009; assess trade liberalisation under the Asean Free Trade Area on enterprise in Laos; and monitor changes in the ranking of constraints to business development. The research lays the foundations for an impact monitoring system for partner organisations by comparing EBS 2005, ES 2007 and ES 2009 data.
German Ambassador to Laos Dr. Peter Wienand said at the launch of the report “We always complain about insufficient statistical data in Laos but fortunately with this survey we have a reliable guideline for the state of the business sector which can serve as a model for other statistical inquiries as well. The survey not only measures improvements in the business environment over the years in general, it also measures the success of the bilateral HRDME programme, he said. Because of this improvement in the institutional regulatory and human resource condition, the private sector and SME development is at the heart of this programme and the results of the survey can be used as one of the benchmarks for progress. More than 100 participants from the public and private sectors as well as international organisations attended the launch of the report in Vientiane, which was attended by the Director of the Ministry of Planning and Investment’s Department of International Cooperation, Mr Somchith Inthamith.
