Positioning Lao Business for Least Developed Country Graduation

Vientiane, Laos (ILO News). At an ILO meeting with the Lao National Chamber of Commerce and Industry (LNCCI) held on 31 March 2026 in Vientiane, discussions focused on how to support Lao enterprises in the lead-up to LDC graduation in 2026 and the rapidly changing trade and market landscape.

Recent analysis carried out for the new UN Cooperation Framework (2027-2031) indicates that changes to preferential trade arrangements could result in trade losses of up to USD 734 million (7.3% of exports), particularly in sectors such as garments, agriculture, rubber and light manufacturing. At the same time, emerging requirements linked to responsible business conduct (RBC), labour standards and human rights due diligence (HRDD) are becoming central to market access.

The meeting reviewed progress under the ILO's Building Responsible Value Chains in Asia (RVC) project (2024-2026) and agreed on a shift from awareness-raising to practical, enterprise-level implementation. Key priorities emerging from the discussion include:

• Development of national RBC guidelines, led by LNCCI, to provide a practical reference point for enterprises

• Transition to sector-level pilots in export-oriented industries to translate standards into business systems

• Strengthening LNCCI's role as a platform for employer engagement and service delivery on RBC

The meeting also reviewed progress under the Canada-funded project:
"Promoting Trade in Lao PDR by Eliminating Workplace Discrimination, Harassment, and Child Labour."

This work will:

• Develop guidelines and tools on child labour and workplace discrimination
• Pilot implementation with selected companies in priority sectors (including garments and agriculture)
• Deliver training on violence and harassment in the world of work (VH@W) and build national trainer capacity
• Scale through training-of-trainers (ToT) across employers, workers and government

A key outcome of the meeting was agreement that these efforts must be fully integrated into a broader RBC framework, ensuring coherence across projects and creating a clear, employer-facing system of support.