Representatives of the banking and business sectors take part in a panel discussion.

Finance fair opens up funding opportunities for Lao MSMEs

The MSME Finance Fair 2022, which took place at the Lao National Chamber of Commerce and Industry (LNCCI) in Vientiane on Friday, aimed to provide micro, small and medium-sized enterprises (MSMEs) with access to more sources of capital.
Lack of financing has long been the bane of small businesses, so the fair was an opportunity for banks and representatives of the business sector to exchange ideas and seek ways to make capital more accessible, so that small businesses can grow.
Speaking to reporters at the event, the LNCCI’s Executive Vice President, Mr Daovone Phachanthavong, said the fair was arranged to enable in-person and online participants to exchange lessons learnt about the provision of financing for small businesses.
“The government has funds available at various banks assigned by the Bank of the Lao PDR, on behalf of the government. This fair will provide opportunities for representatives of the business sector and banks to exchange lessons learnt and seek solutions to address the difficulties encountered by MSMEs in sourcing loans,” he said.
Businesses wishing to obtain loans from banks must follow the guidelines, criteria and measures set in place by the bank in question.
“The most important thing is for would-be borrowers to create confidence about their operations. For example, they should have a good record in business operations, be able to provide guarantees, and comply with other terms and conditions,” Mr Daovone said.
He especially noted that businesses should avoid being responsible for a non-performing loan (NPL), as banks would be more likely to approve loans in the future if past loans were repaid as scheduled.
He also suggested that borrowers should provide banks with accurate information about their business performance, so that bank managers would be amenable to providing them with credit.
“Speaking frankly and openly to bank staff is the only sure way to obtain funding for business expansion. The bank must have a full understanding of your business plans or financial problems if you are in need of help,” Mr Daovone said. During the fair, a panel discussion enabled representatives of the business sector and banks to discuss their experiences and engage in open-minded exchanges about their business operations and planned expansion.
A number of leading commercial banks participated in the fair and distributed leaflets and information about financing for small businesses, as well as providing information about interest rates and the different types of loans on offer.
The event was supported by a capacity building project for MSMEs affected by Covid-19, funded by the International Labour Organisation (ILO) and the Swiss Agency for Development and Cooperation (SDC).

By Times Reporters
(Latest Update July 25, 2022)