Building the competitiveness of Lao PDR and their entrepreneurs - - PowerPoint PPT Presentation

▶
building the competitiveness of lao pdr and their
SMART_READER_LITE
LIVE PREVIEW

Building the competitiveness of Lao PDR and their entrepreneurs - - PowerPoint PPT Presentation

Nov 29, 2022 325 likes •561 views

Building the competitiveness of Lao PDR and their entrepreneurs Workshop on Lao PDR towards AEC 2015 19 and 21 February 2013, Laos PDR Dr. Witada Aunkoonwattaka Trade and Investment Division, ESCAP anukoonwattaka@un.org Competition vs

slide-1
SLIDE 1

Building the competitiveness

  • f Lao PDR and their entrepreneurs

Workshop on “Lao PDR towards AEC 2015” 19 and 21 February 2013, Laos PDR

  • Dr. Witada Aunkoonwattaka

Trade and Investment Division, ESCAP anukoonwattaka@un.org

slide-2
SLIDE 2

Competition vs Competitiveness

  • Competition (การแข่งขัน)

– A state of market influenced by regulation

  • Competiveness (ความสามารถในการแข่งขัน)

– At firm level

  • Ability of a firm to compete in the global market

– At country level – At country level

  • Ability of a country to improve and maintain national well

being

  • Measured by a combination of factors such as “relative” rates
  • f growth, income per capita exports, investment, job

creations, etc. In a world of competition, only competitive players remain.

ในโลกแห่งการแข่งขัน ผู้มีความสามาถในการแข่งขันเท่านันทีจะอยู่รอด

In a world of competition, only competitive players remain.

ในโลกแห่งการแข่งขัน ผู้มีความสามาถในการแข่งขันเท่านันทีจะอยู่รอด

slide-3
SLIDE 3

Future scenario

  • Competition will be more and more intense
  • Inflows of FDI in mining and electricity

industries industries

  • Potential to become an export platform of

ASEAN (using LDCs status)

– Light manufacturing – Agriculture and forestry

slide-4
SLIDE 4

Challenges facing Laotian entrepreneurs

  • Competitions between local and foreign

entrepreneurs

– Domestic goods and imports – Local businesses and multinationals

  • Will Lao PDR be fitted into the “Factory of

Asia”?

– Real value is productivity gains

slide-5
SLIDE 5

Competition between local and foreign entrepreneurs

slide-6
SLIDE 6

Four Success Factors

Entrepreneurship Management Skills Business Plan Resources

slide-7
SLIDE 7

Those factors translate into five requirements to remain competitive

1. Customer development: identify new market niches/ nurture customer relations 2. Product development: identify shifting market demand 3. Improve productivity: Human resources development and technology 4. Risk management 5. Cash flow management

slide-8
SLIDE 8

Strategies for entrepreneurs (1)

  • Market research and understanding

international market trends

  • Innovation is the key
  • Cluster strategies
  • Cluster strategies

– Strengthening associations within industrial clusters – Invest in your own R&D, if need be in partnerships or clusters

slide-9
SLIDE 9

Strategies for entrepreneurs (2)

  • Branding Lao PDR in high-value products

and services

– E.g.. exporting furniture not logs, high-income tourists not backpackers tourists not backpackers

  • Invest in people: human resource

management

– Foreign languages, marketing, IT, design, basic business skills

slide-10
SLIDE 10

Issues for entrepreneurs

  • Deepening commercial and contractual relationships

with local and foreign partners

  • All agreements should be recorded in writing.
  • Competitiveness will not occur without investment

– Investing in human capital (language, marketing, IT,

10

– Investing in human capital (language, marketing, IT, business skills) – Adopting new technology – Systemize the business process

  • Protecting your IPRs
slide-11
SLIDE 11

Will Lao PDR be fitted in the “Factory of Asia”?

slide-12
SLIDE 12

Value of joining GVCs: Value of joining GVCs: Value of joining GVCs: Value of joining GVCs:

  • pportunities to grow & improve productivity
  • pportunities to grow & improve productivity
  • pportunities to grow & improve productivity
  • pportunities to grow & improve productivity

Increased access to international markets

Increased access to international markets Increased access to international markets Increased access to international markets

Support from TNC (training/investment in business

Support from TNC (training/investment in business Support from TNC (training/investment in business Support from TNC (training/investment in business process/information sharing etc.) process/information sharing etc.) process/information sharing etc.) process/information sharing etc.)

Technology and knowledge transfer

Technology and knowledge transfer Technology and knowledge transfer Technology and knowledge transfer

Technology and knowledge transfer

Technology and knowledge transfer Technology and knowledge transfer Technology and knowledge transfer

Long term buyer

Long term buyer Long term buyer Long term buyer-

  • supplier relationship

supplier relationship supplier relationship supplier relationship

Reputation and brand development

Reputation and brand development Reputation and brand development Reputation and brand development

Opportunity to upgrade and move up to the next tier

Opportunity to upgrade and move up to the next tier Opportunity to upgrade and move up to the next tier Opportunity to upgrade and move up to the next tier

slide-13
SLIDE 13

Thailand: various GVCs in auto, electronics, high-

tech, agri-business, consumer-goods sectors.

Viet Nam: GVCs under development in garment,

consumer goods, auto and electronics sectors

GVCs in GMS GVCs in GMS GVCs in GMS GVCs in GMS

Cambodia, Lao PDR and Myanmar: Agro-business

and garments; need promotion to attract GVCs (underdeveloped domestic markets)

slide-14
SLIDE 14

Entrepreneur centred development strategies

Access to Infrastructure Business Environment

Entrepreneurs

Access to Finance Business Development Services Technology and innovation Infrastructure Market access

slide-15
SLIDE 15

Competitiveness Framework in the world of GVCs

  • Contestable market power
  • Capacity to respond effectively to competitors
  • Capacity & flexibility to respond to changing environment
  • Capacity to create new market niches

Enterprise (internal)

  • Market access
  • Access to resources
  • Business related regulatory framework
  • Supporting services

QDC (Quality, Delivery, Cost)

External

slide-16
SLIDE 16

Last but not least…

The key role of government

slide-17
SLIDE 17

Ease of Doing Business Ranking 2013 (World Bank and IFC)

WB Ease of doing business ranking

Country Country Ranking 2005

(135 countries)

2008

(183 countries)

2013

(185 countries)

1 Singapore 3 1 1 2 Malaysia 25 24 12

3 Thailand 20 15 18

Favourable business climate is key!

3 Thailand 20 15 18

4 Brunei n.a. 78 79 5 Viet Nam 98 91 99 6 Indonesia 131 123 128 7 Cambodia 142 145 133 8 Philippines 121 133 138 9 Lao PDR 163 164 163

slide-18
SLIDE 18

Bad institutions add to business costs and uncertainty

Average of 2006-2009

slide-19
SLIDE 19

Difficulty of completing trade procedures (2012)

Time taken (days) Cost incurred (2000 constant USD) Lao PDR 26 1683 Cambodia 24 653 Timor-Leste 26 594 Brunei Darussalam 17 562 Thailand 14 527 Indonesia 20 515 Philippines 15 491 Viet Nam 21 477 Singapore 5 353 Malaysia 10 337 Southeast Asia 18 619

Source: APTIR (2012)

slide-20
SLIDE 20

Building competitiveness of Laotian entrepreneurs require the government to provide appropriate business climate.

20

The priority for the government is to reduce regulatory burdens to make it easier to engage in international trade.

slide-21
SLIDE 21

Thank you

http://www.unescap.org/tid/ publication/indpub2621.asp http://www.unescap.org/tid/ publication/tipub2540.asp

http://www.unescap.org/

tid/publication/indpub243 9.asp