The Ministry of Industry and Commerce (MoIC) and Plan International Laos have signed a Memorandum of Understanding for the Lasting Laos Project – Supporting Young Entrepreneurs and Micro, Small, and Medium Enterprises (MSMEs) in the Lao Tourism Value Chain to Adopt and Promote Sustainable Consumption and Production, Circular Economy and Decent Work Practices.

The project has a total budget of USD2.11 million, co-funded by the European Union, the TUI Care Foundation, the French Facility for Global Environment (FFEM), and Plan International Germany. It will build on the achievements of the SUSTOUR Laos project and promote the adoption of sustainable consumption and production practices, circular economy models, and green financing solutions among MSMEs and young entrepreneurs in the Lao tourism sector.

“Strengthening MSMEs through sustainable practices is a national priority under the 9th National Socio-Economic Development Plan and the MSME Development Plan 2021–2025, closely aligned with the mandate of the Ministry of Industry and Commerce, particularly the Department of MSME Promotion. The Lasting Laos Project, co-implemented with Plan International Laos, is one of the Department’s key initiatives to foster and promote MSMEs and start-ups. It reflects the Government’s strong commitment to advancing the Sustainable Consumption and Production Roadmap, supporting the development of local products, and enhancing product quality. By encouraging businesses to adopt greener and more efficient practices, we aim to drive inclusive economic growth while ensuring environmental protection and social well-being,” said Ms Manivon Vongxay, Director General of Department of MSME Promotion, MoIC.

The Lasting Laos project is implemented by Plan International Laos with close collaboration from MoIC, the Lao National Chamber of Commerce and Industry (LNCCI), and provincial and district authorities.

Running until mid-2028, the project will directly benefit more than 3,000 Lao entrepreneurs, employees, and young adults in four provinces: Vientiane, Vientiane Province, Luang Prabang, and Champasak.

Ambassador of the European Union to the Lao PDR, Mr. Mark Gallagher, said, “Transforming economies and value chains is no easy task. But the need is urgent and the benefits are compelling. Whether it’s reducing plastic waste, promoting eco-tourism, or enabling access to green financing, Lasting Laos represents a concrete and timely step towards sustainable and inclusive development.”

The project’s activities will focus on two main areas:

1. Lasting Laos Sustainability Certification: MSMEs in the tourism value chain will be supported to adopt sustainability practices and achieve the Lasting Laos certification, a locally administered programme aligned with international standards such as Travelife.

2. Green Finance and Innovation: MSMEs and young entrepreneurs will gain access to green financing instruments and matching grants to innovate and scale up green products, services, and solutions, particularly in agri-food, textiles/handicrafts, and single-use plastic reduction.

“At TUI Care Foundation, we believe that tourism can be a powerful force for development when local communities are at the heart of the transformation. Through the TUI Futureshapers Laos initiative, we are proud to support young entrepreneurs - especially women - in turning environmental and social challenges into sustainable business opportunities. By providing access to green finance, training, and international networks, we aim to equip them with the tools to lead meaningful change and shape the future of tourism in Laos,” said Alexander Panczuk, Managing Director of the TUI Care Foundation.

The project also seeks to strengthen policy frameworks, integrate sustainability standards into government practice, and foster a culture of responsible and environmentally friendly entrepreneurship in the Lao tourism industry.

“Today, we are deepening our commitment to fostering a sustainable and inclusive tourism industry here in Laos. The signing of this MoU is more than a formality; it represents a shared vision for a pathway to a greener economy. By supporting Lao Micro, Small, and Medium Enterprises, we are helping to cultivate an industry that is not only profitable but also environmentally and socially responsible. Our collaborative efforts will ensure that Laos continues to mature as a truly green destination, attracting conscientious travellers and preserving its natural treasures for generations to come," addresses Ms. Carol Mortensen, Country Director, Plan International Laos.

Through cooperation with government partners, the private sector, and development partners, Lasting Laos aims to create a strong market for sustainable products and services in the Lao tourism value chain, providing MSMEs with competitive advantages and long-term growth opportunities.

“Local entrepreneurs are vital drivers of economic growth in Laos. Supporting them to adopt sustainable practices is essential not only to enhance their competitiveness but also to align with global standards for responsible business. LNCCI is committed to working with our partners to ensure that the private sector contributes meaningfully to sustainable development,” Ms. Chanthachone Vongxay, Vice President of LNCCI.

KPL