The Project objective is to improve the framework conditions and capacities of the business sector for sustainably using economic opportunities and minimizing economic risks arising from Laos’ integration into the AEC. It is expected that the Project will thus contribute to increasing exports of goods and services from Laos, to attracting foreign investments and to making local enterprises more competitive. The population will benefit from decreasing product prices, better product quality and larger product variety.

The target group of the Project consists of entrepreneurs and employees in the private sector, especially small and medium enterprises (SMEs) in selected sub-sectors affected by the AEC. SMEs in areas close to the border will be directly affected by the AEC, since most of the neighboring countries of Lao PDR are ASEAN member states. In other cases, SMEs might benefit from the AEC as suppliers to exporting companies. In addition, SMEs will benefit from an improved access to input supplies. On the other side, SMEs affected by increased competition from other ASEAN member countries will be strengthened.

The Project will give special consideration to poverty alleviation and gender equality. Poor people will become more integrated into economic processes through employment generated in the private sector, decreasing product prices and better product. Whenever possible, the economic situation of women will be strengthened.