KPL
Vientiane is intensifying efforts to expand domestic processing industries as part of a broader strategy to reduce import dependence and stimulate local production. The city now has 2,836 processing units producing 906 product lines, with 119 factories focusing on exports such as food, beverages, garments, furniture, and metals.
(KPL) Vientiane is intensifying efforts to expand domestic processing industries as part of a broader strategy to reduce import dependence and stimulate local production. The city now has 2,836 processing units producing 906 product lines, with 119 factories focusing on exports such as food, beverages, garments, furniture, and metals.
Speaking at the 9th Ordinary Session of the People’s Council on July 9, 2025, officials reported the enforcement of Regulation No. 1702/VT, which manages 38 categories of import goods that can be locally produced. Major locally manufactured items include bottled water, toilet paper, steel, paint, and salt.
A plan to promote 23 product lines as import substitutes is underway, backed by incentives, price controls, and improved investment conditions.
Despite progress, key issues remain include raw material shortages and lack of policies supporting import of inputs, low public confidence in local products, outdated technology and skills gaps, weak packaging, marketing, and branding, limited access to financing, especially for small producers and encroachment on industrial zones due to unregulated urban development.
To address these issues, authorities will encourage local sourcing and value chain development, launch campaigns to build consumer trust in Lao-made products, support technology upgrades and training for producers, improve access to finance for small and medium enterprises (SMEs), strengthen industrial zoning and regulation enforcement and promote public-private partnerships and attract responsible investment.
Vientiane remains committed to building a resilient, self-reliant economy with stronger regional and international integration.
KPL
