Dr Manothong Vongsay (centre) speaks at the project launch on Tuesday.   --Photo Ministry of Industry and Commerce

Laos launches US$5 million project to cut trade costs, streamline business services

The government has launched a US$4.99 million project to simplify business registration, speed up border clearance and improve trade facilitation as the country prepares for the economic challenges of graduating from Least Developed Country status.
The Second Lao PDR Competitiveness and Trade Project (LCTP2) was officially launched in Vientiane on Tuesday, with funding from the Australian Department of Foreign Affairs and Trade (DFAT) through a World Bank-administered trust fund, according to a press release from the Ministry of Industry and Commerce.
Running from July 2026 to March 2029, the project aims to improve the regulatory environment for businesses, reduce trade costs and support more inclusive and resilient economic growth through digitalisation and closer coordination among government agencies.
The project builds on the first Competitiveness and Trade Project (LCTP1), which introduced the Electronic Business Registration System, established a joint border management framework, created a mechanism to review non-tariff measures and provided matching grants for business development services to more than 500 businesses.
The new project focuses on three areas: trade facilitation, the business environment, and project management.
Planned activities include simplifying administrative procedures, digitising priority permits and licences, upgrading the electronic Certificate of Origin, strengthening the National Single Window and improving the electronic Business Registration System. The project will also promote dialogue between the public and private sectors, with particular attention to women-led businesses and entrepreneurs with disabilities.
Among its targets, LCTP2 aims to reduce cargo clearance time at border checkpoints from 3.32 hours to 1.99 hours. It also seeks to increase the share of businesses applying for enterprise registration certificates online from zero to 25 percent, with the share among women-owned businesses targeted to reach 50 percent, the press release stated.
Speaking at the launch, Deputy Minister of Industry and Commerce Dr Manothong Vongsay said the project represented a shared commitment to building a more competitive and inclusive economy.
He said Laos continued to face challenges including limited job creation outside agriculture, a private sector dominated by informal micro, small and medium-sized enterprises (MSMEs), high trade costs, and the loss of preferential market access associated with graduation from Least Developed Country status.
The new project would build on the progress made under LCTP1 to address these challenges, he said.
Australia’s Acting Deputy Ambassador to Laos, Pranjali Palnitkar, said Australia was pleased to work with the Lao government, the World Bank and the private sector to improve conditions for businesses to invest, expand and create jobs.
She said Australia hoped the project would translate reforms into practical benefits for Lao businesses and communities while contributing to a stronger and more resilient economy.
World Bank Group Country Manager for Laos, Khwima Nthara, said the first project had helped establish a foundation for private-sector development, while LCTP2 offered an opportunity to build on those gains to generate employment and stimulate economic growth.
He said reducing trade barriers, cutting border processing times and costs, and upgrading online business registration systems would help create more and better jobs, particularly for young people.
Improving the business environment was essential to attracting private investment and strengthening small businesses, which play a major role in the Lao economy, he added.
The project aligns with national development priorities, including the 10th National Socio-Economic Development Plan, the Ministry of Industry and Commerce’s five-year plan, and the National Agenda on Addressing Economic and Financial Difficulties.
Through streamlined procedures and more accessible digital services, LCTP2 aims to help businesses operate more efficiently and strengthen Laos’ competitiveness as it enters a new stage of economic development.

By Times Reporters
 (Latest Update October 22, 2026)