This is the version of our report for ERIT that will appear in the Lao Trade Research Digest:
Cluster Formation for Lao PDR SMEs in Three Sectors
Abstract
Research was conducted into the current presence of and potential future benefit of clusters in three agricultural sectors in Lao PDR: organic rice; organic vegetables and white charcoal. Producers, business leaders, government officials and other relevant stakeholders were interviewed. It was found that these sectors offer potential for growth both domestically and internationally but that producers faced difficulties common to many small and medium-sized enterprises, including access to knowledge, markets, technology and capital. Most producers were more focused on the supply side of production and emphasized the need for harmonious group management and maintaining good relationships, while having less awareness of the needs of the demand side. There is a role for public and civil sector organizations to promote the distribution, marketing and market access elements of these sectors, in addition to enhancing technical competences and skills of local producers. There is also a need to develop market conditions within Lao PDR so that consumers have more opportunity to make purchasing decisions based on a range of product attributes in addition to price. Recommendations and implications are drawn from the research.
Nittana Southiseng, John Walsh and Santisouk Vilaychur
Some more details about the project are here.
Ladprao 64 