Economic growth in Lao PDR has been strong for several years in a row. This impressive result has been primarily driven by the non-agricultural sector through export of natural resources, either minerals extracted or energy produced via hydro power. However, it has, unfortunately, not resulted in much employment/ livelihood creation. The agricultural sector still employs approximately 70 percent of the population, but it is a sector characterized by low productivity and high vulnerability. As a result, it has been difficult to lift people out of poverty and reduce the gap between poor. This has made the attainment of graduation from Least Developed Country (LDC) status and achieving the Sustainable Development Goals (SDGs), an uphill challenge. Without specific interventions capable of ensuring an inclusive growth and particularly one that creates new livelihood and employment opportunities, it will undoubtedly remain an overwhelming challenge.

Many assessments have assumed that Laos can prosper through a comparative advantage, whereby it produces cheaply for regional markets and manufactures. This project however will use special techniques to identify ‘completive advantages’ from the point of view of the international consumer. It will identify such marketing-based ‘completive advantages’ for Laos overall and for individual niche products – with the additional aim to ensure that the producer, for example a farmer, benefits directly from the export. The overall Lao competitive advantage can be one that appeals strongly to the ‘ethical consumer’ – a large group of international consumers who pay higher prices in return for various assurances and product benefits, including ethical guarantees and natural/ organic products. Although it will build on previous studies, This project will invoke a new analysis and approach to poverty reduction in Lao PDR.

Several Lao products will be helped to capitalise this overall Lao competitive advantage through their superior characteristics to other products in the eyes of international consumers. Several products (possibilities could include tea, rice, coffee, tourism, spices, pepper, fruit, wooden furniture, silk and clothing-among others) are being considered and will be assessed further for how to develop their international appeal to the fullest extent. With the most appropriate product development, existing or new branding and a specialised sales structure, producers and enterprises will market those products to international consumers at premium prices and with much higher profit margins. All of it will be marketed under the ‘Lao brand’, an exceptional presentation featuring and also reinforcing the unique Lao culture with a credible, sustainable and ethical appeal to wealthy but ethically-minded consumers – in Asia, Europe and elsewhere in advanced economies. The ‘Lao brand’ will guarantee enhanced incomes all the way down the chain, that is an intrinsic part of the plan.

The target objective is the creation of a launching pad for several brands that will bring Inclusive prosperity and development through premium sales. To achieve this project will be implemented by and in a close collaboration with the Lao National Chamber of Commerce & Industry (LNCCI), with the endorsement of the Government of Lao PDR. Hence, this project will build a sustainable foundation upon which larger scale and/or various interventions can support the priorities identified in the Government of Lao PDR-UNDP Country Programme Document, as well as help with successful implementation of the 8th National Socio-Economic Development Plan (NSEDP) 2016-2020, the aspiration to graduate from the status of a Least Developed Country (LDC) and eventually ensure progress on the Sustainable Development Goals (SDGs).

Lao National Chamber of Commerce and Industry (LNCCI)
Km 5, Kaysone Phomvihane Str. Saysettha District,
Vientiane Capital, Lao PDR.
Tel: +856 21 452 579; Fax: +856 21 452 580