Laos, S. Korea partner to empower SMEs, startups

Small and medium-sized enterprises and startups in Laos, as well as in the Republic of Korea, will be strengthened following an agreement by Laos’ Ministry of Industry and Commerce and the Ministry of SMEs and Startups of the Republic of Korea to join forces to empower these businesses.
Cooperation in this area of development was discussed during an official visit by representatives of the Ministry of Industry and Commerce to Korea to attend Knowledge Sharing Programme (KSP) fellowship sessions.
The sessions took place from May 28 to June 3 and shared Korea’s successful cases with top-notch experts in Korea through lectures and site visits to enhance the capacities of Lao officials with regard to measures for vitalising startups and nurturing SME exports.

During the fellowship sessions, the delegation met Deputy Minister and International Cooperation officials from the Ministry of SMEs and Startups to follow up on a Memorandum of Understanding (MOU) signed by the two ministries in September 2019 to mark the Korean president’s state visit to Laos, enhance cooperation in the exchange of personnel and technologies, and provide expertise to facilitate startups and SMEs.
The agreement by the two sides to empower SMEs and startups was also discussed and the Lao PDR-Korea Business Roundtable organised by the Korea Trade and Investment Promotion Agency (KOTRA) took place on June 3. Deputy Minister of Industry and Commerce, Mr Bountheung Douangsavanh, said “Due to the unexpected Covid-19 pandemic, cooperation to follow up the MOU has been limited but, as Laos initiated a full reopening on May 9, we hope to further solidify cooperation in the field of facilitating startups and SMEs.”
“We have already started a feasibility study to set up a new academic course for digital innovation and to establish a startup incubating centre at the Commerce College through KOICA’s ODA programme. We need to learn from Korea and strengthen capabilities in fields such as facilitating global market entry and incubating new export SMEs,” he added.
A representative from LNCCI, Mr Thanongsinh Kanlagna said “As digital based technology becomes a key component in startup incubation, we expect the Ministry of SMEs and Startups can support our association to develop digital talent among young Lao entrepreneurs.”
The Deputy Minister SMEs and Startups, Mr Tae-Sup Byeon, said “Establishing the Techno Park in Laos is the starting point, and we will review it with the highest priority once the Ministry of Industry and Commerce suggests a specific cooperation agenda in the field of SMEs and startups. The Ministry of SMEs and Startups recently initiated the establishment of the Techno Park in Laos to support Laos’ digital economy and to develop human resources in the IT sector. The ODA project will continue until 2025 with US$6 million in funding from the Ministry of SMEs and Startups.”
Director General of the Trade Promotion Department, under MoIC, Mr Xaysomphet Norasingh, said “This meeting was meaningful in that both ministries agreed to create a substantive cooperative agenda rather than just ending with slogans.”
“Since the topic of the Knowledge Sharing Programme is ‘Investing in New Exporters through Startups Promotion’, once we develop specific cooperative projects that are beneficial to both nations, we plan to propose them to the Ministry of SMEs and Startups.” During the Laos-Korea Business Roundtable held at the KOTRA headquarters, 10 Korean companies participated and introduced their businesses and raised questions about tapping into the Lao marketplace.  Five of them shared their business plans to set up companies in Laos as investors.
The Knowledge Sharing Programme was funded by Korea’s Ministry of Economy and Finance, coordinated by KOTRA, and organised by the Hyundai Research Institute and the Korea Venture Business Association.  Director General of KOTRA Vientiane, Commercial Section of the Embassy of the Republic of Korea, Mr Pil Seong Kim, said “I was surprised by the passionate participation of Ministry of Industry and Commerce officials. The final Knowledge Sharing Programme reporting is scheduled this coming August, and our office will support to come up with specific action items.”  “I hope that this programme can contribute to achieving the Ministry of Industry and Commerce’s goals set in the Visions for 2021-2025 and 2030,” he added.

By Times Reporters
 (Latest Update June 9, 2022)