Responsible business gains ground in Lao People’s Democratic Republic as ILO’s initiative concludes

Responsible business gains ground in Lao People's Democratic Republic as ILO's initiative concludes

Supported by the Ministry of Economy, Trade and Industry of Japan, the initiative strengthened national capacity to advance responsible business conduct (RBC) and decent work across supply chains.

31 March 2026

Vientiane (ILO News) - Responsible business practices in the Lao People's Democratic Republic have received a boost following the completion of a two-year International Labour Organization (ILO)-led project promoting decent work across supply chains.

Funded by the Government of Japan, the "Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II)", delivered tangible results.

Over the course of the project, 771 participants, including 325 women, from government, employers' and workers' organizations as well as enterprises strengthened their knowledge and capacity to promote RBC and decent work.

A key achievement was the establishment of a national pool of facilitators within the network of Lao National Chamber of Commerce and Industry (LNCCI), equipping the chamber to continuously deliver RBC and environmental, social and governance (ESG) training beyond the project's duration.

In parallel, the capacity of labour inspectors from all 18 provinces to carry out inspections and raise enterprise awareness of international labour standards was enhanced.

The project also advanced policy dialogue and coordination, with the stakeholders discussing a draft national roadmap for responsible business practices - guided by the ILO MNE Declaration, linking the RBC agenda to trade and investment priorities in Lao People's Democratic Republic as the country prepares for its scheduled graduation from Least Developed Country status.

The Final Project Advisory Committee (PAC) Meeting and closing ceremony, held on 11 March 2026 in Vientiane, brought together representatives from the Ministry of Labour and Social Welfare, the LNCCI, the Lao Federation of Trade Unions, the Embassy of Japan, and the ILO. The meeting provided an opportunity to reflect on achievements, share lessons learned, and identify pathways to sustain progress beyond the project's completion.

"Promoting responsible business conduct and labour human rights due diligence to achieve decent work in supply chains is an important priority in the government's labour management policy", said Phongsaysack Inthalath, Vice Minister of Labour and Social Welfare, who chaired the event. "I hope that PAC members from across sectors will carry forward the good lessons from this project and continue to translate them into their professional work going forward."

"This year marks a particularly important turning point for Lao PDR, with its scheduled graduation from LDC status," said Takuro Tasaka, Minister at the Embassy of Japan to Lao PDR. "Demonstrating a strong commitment to responsible business conduct and human rights will reinforce Lao PDR's position as an attractive destination for trade and investment. Japan reaffirms its strong commitment to working closely with Lao PDR, the ILO, and all partners to promote RBC that supports economic development, respects human rights, and contributes to a better future for all."

Xiaoyan Qian, Director of the ILO Country Office for Thailand, Cambodia, and Lao People's Democratic Republic, said: "What gives me most confidence is not any single output, but the growing shared understanding among government, employers, workers, and enterprises that responsible business conduct is not a burden, but an investment for the future."