Reaching across the Mekong: Local Socioeconomic and Gender Effects of Lao-Thai Crossborder Linkages

Announcing the publication of:

José Edgardo Gomez, Jr., Nittana Southiseng, John Walsh and Samuel Sapuay, “Reaching across the Mekong: Local Socioeconomic and Gender Effects of Lao-Thai Crossborder Linkages,” Journal of Current Southeast Asian Affairs, Vol.30, No.3 (2011), pp.3-25, available at: http://hup.sub.uni-hamburg.de/giga/jsaa/article/view/473/471. 

Abstract:

Following trade agreements between ASEAN states, the expansion of cross-border roads and bridges between Laos and Thailand has linked local communities and distant markets in increasingly diverse ways. Although the planned impacts of such integration are expected to be beneficial, effects on the ground vary, as witnessed at a sleepy outpost in Xayabury and a more vibrant crossing in Savannakhet. This paper discusses first the physical setting of such border facilities, and then explores their actual local effects on traders’ activities, highlighting changes in gender roles and perceptions of entrepreneurial competition participated in by women in the two research sites.

Keywords: Laos, Thailand, Greater Mekong Subregion, GMS, frontier trade, female entrepreneurs, gender, regional development

Entrepreneurship in the Mekong Region: Opportunities in Laos

Currently and for the next decade or so, Laos is going to be a market which requires either a long-term perspective or the willingness to operate on a small scale. Neither of these factors would appear to be hugely compelling for an ambitious entrepreneur but, in the Mekong Region, the majority of businesses are organized and operated at the micro level. Operating at a small scale, in fact, can be an unavoidable but also reasonably attractive proposition for many people.

Online business programs are an option for those who want to learn more about business.

Read the full article here.

Entrepreneurship in the Mekong Region: Laos

Laos remains one of the poorest countries in Asia: it has been handicapped in the attempt to achieve economic development by the low density of population, the very difficult terrain (much of which is mountainous and forested) and by the land-locked nature of the country – it has become well-known that lack of access to a good seaport has become a serious negative effect for a country that wants to achieve development.

Read the full article here.

Informal Networks as Alternatives of Life Development of Returned Migrants

Announcing: Southiseng, Nittana and John Walsh, “Informal Networks as Alternatives of Life Development of Returned Migrants,” International Journal of Behavioral Science, Vol.6, No.1 (September, 2011), pp.1-11, available at: http://bsris.swu.ac.th/journal/i6/1Nittana_1-11.pdf.

Abstract:

Labour migration is a vital part of modern economies and the management and integration of migrants into the labour force of great importance in fashioning its ability to adapt to and take advantage of emergent opportunities. This study applied a qualitative approach to exploring how returned migrants re-integrated into society and their informal networks with a view to improving the quality of life of the people concerned. In-depth interviews and direct observation were used in combination with the content analysis of secondary data. Findings were mainly based upon evidence from the interviews. Both skilled and unskilled returnees have regularly turned to informal networks for assistance on their own account, partly because official programs could be disorganized and lack resources. It has been found that most return migrants find themselves unemployed and have had to turn to access to their informal networks (parents, relatives, cousin and friends) to borrow money, get ideas and suggestions, locate further network connections so as to prepare to enter self-employment and personal investment in ventures such as grocery stores, beauty salons, food street vending and similar. Returnee management has been disappointing because of inadequate NGO involvement, lack of strategies to mobilize migrants’ knowledge and expertise, and lack of complete and up-to-date statistics, among other constraints. This has given rise to a new generation of cyclical migrants, who move back and forth across borders attempting to integrate their internally multiple identities and senses of loyalty and belonging.

Key Words: Return migrant, informal network, Laos

Challenges of Economic Stress on Chinese Entrepreneurs and Their Families in Laos

Announcing: Walsh, John and Nittana Southiseng, “Challenges of Economic Stress on Chinese Entrepreneurs and Their Families in Laos,” Journal of Social and Development Sciences, Vol.2, No.1 (July, 2011), pp.31-7, available at: http://www.ifrnd.org/JSDS/Vol%202/2(1)%20Jul%202011/5.pdf.

Abstract: Chinese are increasing in number in Laos as new inter-governmental agreements permit labour migration for infrastructure development. Entrepreneurs have been accompanying migrants and establishing their own businesses, alongside the long-standing businesses established over the years by ethnic Chinese in the country. Many industrial sectors are involved. Problems that Chinese entrepreneurs might face include language issues and discrimination, as well as lack of business infrastructure and support services. Additionally, Lao consumers are primarily motivated by price alone and have little interest in exploring new brands or products. While these business management related issues are clear, what is not clear is the impact that conducting business on such a basis has on additional family members, who are also commonly employed within the business. Key informants were Chinese entrepreneurs and their family members in the capital city of Vientiane and they were interviewed personally with a view to understanding what stresses there may be on family members doing business in an environment which is not entirely friendly or welcoming, especially under conditions of global economic crisis. Competition is intensifying as increasing numbers of Thai and Vietnamese entrepreneurs are seeking to establish a foothold in the Lao market. Many Chinese entrepreneurs have, as a result of these changing conditions, been forced to offer better deals for customers, thereby restricting profits. This has had a follow-through effect on family members.

Keywords: Economic stress, Chinese entrepreneurs, Laos

What Is Cowboy Capitalism?

‘Cowboy capitalism’ is a term given to the kind of capitalist system that takes place outside the control and supervision of the state. Without such control, there is no enforcement of property rights, no protection for consumers or workers and no need to pay formal taxes or duties.

Read the full article here.

Understanding and Strengthening the Health of Family Businesses in Laos

Announcing:

Walsh, John and Nittana Southiseng, “Understanding and Strengthening the Health of Family Businesses in Laos,” Information Management and Business Review, Vol.2, No.1 (January, 2011), pp.12-8, available at: http://www.ifrnd.org/IMBR/2(1)%20Jan%202011/Understanding%20and%20strengthening_health%20of%20family%20businesses.pdf.

Abstract:

More than 90% are family-businesses and are concentrated in retail, handicrafts, and personal services sectors. More than half are female-owned and managed, although baseline information about business and family management are limited. This paper reports on qualitative research aimed at understanding family business practices, impact of education in family businesses in a range of activities in Laos. Most such businesses remain based at or very close to home, and along the main road with any growth managed by hiring additional family members. Firms were run on traditional lines, while the management decisions were generally taken by senior family members depending on their existing prejudices. Although family businesses in Laos are still largely disorganized, they play critical roles in creating job opportunities and boosting household income for local residents as well as helping family members to utilize their existing talents, time, and resources. In promoting this sector, the Government of Laos has significant roles in developing policies, establishing a relevant governing agency, and encouraging training and involvement from the private sectors and from key international organisations.

Keywords:

 Business development, Entrepreneurial development, Family business, Laos, SMEs

Study of Tourism and Labour in Luang Prabang Province

Announcing: Southiseng, Nittana and John Walsh, “Study of Tourism and Labour in Luang Prabang Province,” Journal of Lao Studies, Vol.2, No.1 (January, 2011), pp.45-65, available at: http://laojournal.org/index.php/promote/article/view/16/16.

Abstract:

Luang Prabang is becoming a well-known destination for international tourists. It was officially proclaimed a UNESCO World Heritage Property in 1995. Significant increases in tourist arrivals to Luang Prabang have provided opportunities to the residents of Luang Prabang to earn income and increase their knowledge and levels of experience. However, substantial gains were not sustainable due to the lack of qualified labour to supply the booming sector. This article explores the labour market of the tourism industry in Luang Prabang. It is based on 39 in-depth interviews with local people aimed at exploring problems and ways to improve the tourism and labour development in the city. The results suggest the necessity of increases in employment, either through entrepreneurial provision of accommodations, restaurants or tour operator services, or else within indirect tourism-related business. There is a need to upgrade the skills and experience of the labour market to remain competitive and a need to better balance the supply and demand of labour. There is a deficiency in terms of tourism-labour development planning, levels of individual motivation, available budget resources, and the numbers of of qualified people in tourism management in both the private and public sectors. The research findings were used to identify recommendations to strengthen the sustainable development of the labour market and tourism industry in Luang Prabang Province.

Remittances and the Changing Roles of Women in Laos

Announcing: Southiseng, Nittana and John Walsh, “Remittances and the Changing Roles of Women in Laos,” International Journal of Human and Social Sciences, Vol.6, No.1 (2011), pp.24-30, available at: http://www.waset.org/journals/ijhss/v6/v6-1-5.pdf.

Abstract:

Prior to 1975, women in Laos suffered from having reduced levels of power over decision-making in their families and in their communities. This has had a negative impact on their ability to develop their own identities. Their roles were identified as being responsible for household activities and making preparations for their marriage. Many women lost opportunities to get educated and access the outdoor work that might have empowered them to improve their situations. So far, no accurate figures of either emigrants or return migrants have been compiled but it appears that most of them were women, and it was women who most and more frequently remitted money home. However, very few recent studies have addressed the relationship between remittances and the roles of women in Laos.

This study, therefore, aims at redressing to some extent the deficiencies in knowledge. Qualitative techniques were used to gather data, including individual in-depth interviews and direct observation in combination with the content analysis method. Forty women in Vientiane Municipality and Savannakhet province were individually interviewed. It was found that the monetary remittance was typically used for family security and well-being; on fungible activities; on economic and business activities; and on community development, especially concerning hospitality and providing daily household necessities. Remittances played important roles in improving many respondents’ livelihoods and positively changed their identities in families and communities. Women became empowered as they were able to start commercial businesses, rather than taking care of (just) housework, children and elders. Interviews indicated that 92.5% of the respondents their quality of lives improved, 90% felt happier in their families and 82.5% felt conflicts in their families were reduced.

Keywords: Laos, Monetary Remittances, Social Remittance, Women’s Empowerment.

Competition and Management Issues of SME Entrepreneurs in Laos

Announcing: 

Southiseng, Nittana and John Walsh, “Competition and Management Issues of SME Entrepreneurs in Laos: Evidence from Empirical Studies in Vientiane Municipality, Savannakhet and Luang Prabang,” Asian Journal of Business Management, Vol.2, No.3 (September, 2010), pp.57-72, available at: http://maxwellsci.com/print/ajbm/v2-57-72.pdf.

Abstract:

Abs tract: This study analyses competition and management issues of Small and Medium Enterprise (SME)
entrepreneurs in three provinces of Laos: Vientiane Municipality (the capital city), Savannakhet (an important
economic development zone) and Luang Prabang province (a famous historical site and tourist destination).
Competition and management have changed dramatically after the introduction  of the New Economic
Mechanism in 1986, which moved the economy from central planning to market-based economic management.
Qualitative research was used, with 52 in-depth personal interviews conducted and combined with behavioural
observation and content analysis of secondary sources of data. Results indicate the importance of SMEs in the
Lao economy, with some 74% of total enterprises being family-owned SMEs. These concentrate on food
processing, garment production, construction materials, wooden furniture, tourism, education, trading,
transportation, internet services and others. Increases in the SME sector have contributed to job growth and
overall GDP growth. Findings also showed increased competition in the sector as substitute products are
introduced, with significant bargaining power for buyers and a high rate of new entrants into a limited range
of product/service markets, without much competition in terms of price and quality of goods and services.
Entrepreneurs find it difficult to access modern technology and finance, have limited resources in terms of
capital and skill and must also negotiate unfair treatment by officials. Management styles usually focused on
short-term day-to-day objectives and few were able to consider longer-term considerations or business
sustainability. Skills management and capacity building in these SMEs were narrowly conceived and required
to be profit-based. Training and development of human resources was seen as a cost rather than an investment.
Recommendations are made for enhancement of SME productivity and capacity.