(KPL) The Steering Committee of the Lao Production Promotion Fund (LPPF) held a meeting over the weekend to strengthen strategies for expanding domestic production and addressing key economic challenges.

The meeting was chaired by Deputy Prime Minister Saleumsay Kommasith, who is responsible for overseeing economic and international affairs. He was joined by Minister of Industry and Commerce Malaythong Kommasith, along with other ministers, vice ministers, and LPPF committee members.

The discussions focused on enhancing national self-reliance and resilience by improving production capacity, raising product quality, and applying modern production techniques. The committee emphasized the importance of leveraging domestic resources to support sustainable growth in both domestic consumption and exports.

In his remarks, Deputy Prime Minister Saleumsay stated that the LPPF has provided support to 3,357 micro, small, and medium enterprises (MSMEs) across the country. He acknowledged this as a major achievement, but also noted that many MSMEs still face significant challenges in accessing capital. These challenges include high interest rates, insufficient collateral, and outstanding debt with financial institutions, which limit their ability to expand production.

To address these issues, the government issued Notification No. 25/PMO on January 7, 2025. This notification instructed the Ministry of Industry and Commerce to work with relevant sectors to draft a decree on fund management. As a result, Decree No. 483/PM was issued in June 2025, providing a clear legal framework to strengthen the fund’s role in promoting Lao-made products for both domestic and international markets.

The main objective of the meeting was to strengthen local production, reduce import dependency, and increase export capacity.

The committee recognized that MSMEs continue to face financial barriers, particularly with collateral requirements and high interest rates.

The newly issued decree is intended to streamline the management of the fund and improve support for Lao producers.

Moving forward, the LPPF will focus on promoting scalable production models, improving quality standards, and expanding financial access under the new regulatory framework. These efforts aim to build a more resilient and competitive Lao economy.

KPL