Laos launches IMPACT Biz project to boost economic recovery

Laos is working with foreign development partners to promote economy recovery,  including plans and activities to improve business performance and accountability.
In the context of these initiatives, the Ministry of Industry and Commerce, the Lao National Chamber of Commerce and Industry (LNCCI), the Embassy of Japan and the United Nations Development Programme (UNDP) launched a new project on “Improving Performance, Accountability, Conduct, and Transparency of Businesses in the Lao PDR”, also known as the IMPACT Biz project.

Panellists from different types of firms shared their experiences related to responsible business practices and social engagements with the participants.

The partners also co-hosted a dialogue on responsible business practices in Laos. The participants included a number of business representatives and companies operating in Laos.
The opening ceremony, which was held in Vientiane on Thursday, was attended by the Deputy Minister of Industry and Commerce, Dr Manothong Vongsay, the Vice President of the LNCCI, Dr Xaybandith Rasphone, representatives from the Embassy of Japan and the UNDP, and other partners.
Speaking at the ceremony, Dr Manothong, said “Globally, investors are increasingly looking towards having a positive impact on the environment and ensuring that each investment is socially responsible. With the available capital growing year on year, it is important that the Lao PDR is well positioned to attract high-quality and long-term investment to maintain access to larger economies.”
He said that it is for this reason that the government and private sector should be keen to embrace responsible business to drive economic recovery.
The meeting included a panel discussion that was joined by representatives of different types of businesses operating in Laos. They highlighted their engagement in responsible business practices in Laos.
Dr Xaybandith said that supporting Lao businesses to adopt responsible business practices is an important step in ensuring that they remain competitive.
“The global evidence shows that businesses already implementing responsible practices have enjoyed advantages in attracting diverse talent and retaining staff, reducing reputational and legal risks, accessing new markets, and building a positive brand image,” he added.
Over the past decade, Laos has been one of the fastest-growing economies in Asean. While business activity has underpinned much of this progress, it has often been at the expense of environmental resources. Development has also led to challenges in upholding labour standards.
Increasing water and air pollution, biodiversity destruction, and violation of workers’ rights by irresponsible businesses have had a negative impact on society and the environment, greatly affecting many people’s everyday lives.
To ensure business activity continues to drive Laos’ economic growth without compromising the environment and people’s well-being, it is critical that the country embraces a responsible business agenda.
By actively assessing their impacts and taking measures to prevent negative fallouts, responsible businesses can improve access to essential goods and services, generate jobs for disadvantaged groups, and build a sustainable tax base to invest in social initiatives. Responsible businesses also enjoy improved working partnerships with the communities where they operate and report higher profit margins over time.
The UN Guiding Principles (UNGPs) on Responsible Business Practices are the global framework that guides Laos’ progress in embracing responsible business.
The Officer-in-Charge at UNDP, Ms Catherine Phuong, said: “UNGPs call on all countries to develop National Action Plans on Responsible Business Practices. Thirty economies have already adopted such national plans, and the Lao PDR should not be left behind in this global trend.”
She noted that UNDP has recently supported the development of the National Action Plan in Indonesia, Malaysia, Thailand and Viet Nam, and looks forward to supporting the Lao government in its journey.
The new IMPACT Biz project is part of a global initiative supported by the government of Japan across 17 countries, and it seeks to advance responsible business practices in Laos by helping the government develop more robust laws and policies to manage business operations. The project helps guide businesses to carry out social and environmental impact assessments, and assists civil society in monitoring irresponsible business practices across industries and provinces.

By Times Reporters
(Latest Update September 16, 2022)