Enhancing sustainable tourism, clean production and export capacity in Lao People’s Democratic Republic

The Government of Lao People’s Democratic Republic (GOL) seeks to increase growth and improve export competitiveness as reflected in the Poverty Reduction Strategy Paper / National Socio Economic Development Plan, through the implementation of its medium-term strategy outlined under its Action Matrix for Trade-Related Assistance. The Diagnostic Trade Integration Study (DTIS) action matrix, prepared by the Government, was approved during the Lao PDR National Validation Workshop on September 12, 2006. One of the ways in which the GOL is implementing its trade agenda is through the establishment of the permanent National Integrated Framework Governance Structure, a multi-agency entity consistent with the Enhanced Integrated Framework (EIF) and the Vientiane Declaration on Aid Effectiveness which will coordinate Official Development Assistance (ODA) in this sector. This permits a more coherent, effective, and participatory implementation of the comprehensive reform plan spelled out in the Action Matrix (reviewed on a multi-annual rolling basis), synergistic increase in benefits from ODA, and a reduction of the transaction costs incurred with stand-alone development partner assistance. Development partners are expected to consider contributing to the GOL mediumterm priorities via the NIFGS. The GOL is preparing to lead the update of the DTIS Action Matrix in collaboration with various international partners, of which the UN cluster agencies will be part. The UN has established in 2007 a thematic Inter-Agency Cluster on Trade and Productive Capacity to ensure that issues related to trade and productive sectors are adequately taken into account in the pursuit of the Millennium Development Goals (MDGs) and in the strengthening of the "Delivering as One" UN-wide reform process. ILO became a member of the cluster in 2010. The Swiss Government, through the Swiss State Secretariat for Economic Affairs (SECO), has signed with UNCTAD, UNIDO, ITC, and ILO a framework agreement for trade related technical assistance in up to 6 LDCs. Lao was chosen as the first country to launch operations under this program, which results in the formulation of the project “Enhancing sustainable tourism, clean production and export capacity in Lao PDR”. SECO will fund this three-year project in the amount of US$ 4,040,000. UNOPS will manage the program's trust fund. The main objective of this project is to develop an overall competitive tourism industry, while at the same time strengthening the organic agriculture and the handicraft (especially the silk) industries in order to achieve a spill-over effect on those sectors through backward-linkages, and improving the export volume and quality of the above mentioned sectors, thereby positively impacting on poverty in targeted provinces of Lao PDR. For this purpose, the project will address four main areas of technical cooperation: · Development of a competitive and sustainable tourism industry, · Strengthening of backward linkages of handicraft (especially silk) and organic agriculture to the tourism industry; · Facilitating exports to regional markets and meeting international requirements for target sectors; · Addressing cross-cutting issues concerning cleaner production, strengthening the local trade related forums and task forces (NIFGS) and supporting the government in the DTIS update process

Project symbol

LAO/10/02/UNO

Admin unit

CO-Bangkok

Start date

10/06/2011

End date

30/09/2014

Total allocation

621830

Total expenditure

Status

Closed

480411

Development Partners

United Nations Office for Project Services

Country/Countries

Lao People's Democratic Republic

Outcomes

Sustainable Enterprises