Laos Business Environment Activity FY21 Q3 Progress Report

The program seeks to enhance the competitiveness of small and medium-sized enterprises (SMEs) in Laos PDR. The Activity is organized under three intermediate results, which also constitute the project components. Intermediate Result 1 (Component 1) focuses on improving the competitiveness of SMEs. During the reporting period, the Eco-tourism Value Chain Assessment (VCA) was completed, including a report of key findings and an action plan to support eco-tourism SMEs impacted by the COVID-19 pandemic. The action plan is being reviewed with counterparts at the Ministry of Information, Culture and Tourism (MICT) and other relevant counterparts to ensure alignment with their priorities. The Laos Business Environment team also selected an IT vendor through a sealed bidding process to develop the Online Educational Platform for Digital Literacy Skills for Entrepreneurs and MSMEs. Work on the 8-module platform is underway and is expected to be completed by or before September 2021. This online platform will provide readily-accessible tools for SMEs to develop digital skills instrumental in navigating the "new normal" business and trade environment. Intermediate Result 2 (Component 2) focuses on making public-private sector collaboration more inclusive. The Laos Business Environment Activity deployed its Local Public Private Dialogue (LPPD) Coordinator to Pakse, Champasak Province, where he successfully organized the first LPPD focal point meeting with 28 participants across key provincial public and private sector organizations. The LPPD mechanism being supported by the Activity aims to ensure an inclusive business environment reform process, reflecting the voice and perspectives of provincial-level businesses. The Component 2 team also organized separate virtual public and private sector consultation meetings on the Tourism Promotion Board (TPB) to achieve a consensus among public and private sector stakeholders. Additionally, the team is working on the SME Service Center (SSC) Assessment, which has been completed, and a comprehensive PowerPoint presentation with key findings was submitted to USAID for review. Intermediate Result 3 (Component 3) focuses on more effective facilitation of the market economy. Despite challenges posed by the COVID-19 pandemic, the Laos Business Environment team has continued to make notable progress on key activities across various components. The team is working on the final concept note, operational manual, and proposed agenda for the Laos Business Ecosystem Partnership Fund (LBEPF) launch event, which will pilot innovative partnerships to support the recovery and growth of SMEs in priority sectors, including Information and Communications Technology (ICT), eco-tourism, and handicrafts. The Laos Business Environment Activity has made significant progress in strengthening national-level facilitation and continuous improvement of the Laos Business Environment, enhancing the competitiveness of SMEs, and promoting inclusive public-private sector collaboration. Despite challenges posed by the COVID-19 pandemic, the Activity continues to work towards its objectives, with a focus on supporting the recovery and growth of SMEs in priority sectors.