The Lao People's Democratic Republic has taken important steps to promote responsible business conduct and inclusive economic development through collaboration with the International Labour Organization (ILO).
On 24 June 2025, national stakeholders convened in Vientiane to review progress made under the "Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations" project, funded by Japan's Ministry of Economy, Trade and Industry.
Representatives from the Ministry of Labour and Social Welfare, the Lao Federation of Trade Unions, the Lao National Chamber of Commerce and Industry (LNCCI), and the Embassy of Japan endorsed an updated work plan, affirming their commitment to deepening the impact of the project. The plan includes further awareness-raising among enterprise and multi-stakeholder collaboration to create an enabling environment for responsible business and decent work in supply chains.
Over the course of the project, more than 300 representatives from government, employers' and workers' organizations, and enterprises have participated in awareness-raising and capacity-building programmes on responsible business conduct and international labour standards. These efforts contribute to enhance enterprises' compliance with national laws and international labour standards, which in turn helps to increase incomes, create jobs and alleviate poverty.
Speaking at the meeting, Phongsaysack Inthalath, Vice Minister of Labour and Social Welfare, emphasized: "Responsible business conduct and better working conditions will contribute positively to attract Lao workers in the country," while citing the recent challenges of the outflow of Lao workers to neighbouring countries.
Tochimichi Koga, First Secretary of the Embassy of Japan, underscored the corporate responsibility to respect human rights and labour rights, highlighting the importance of corporate human rights due diligence (HRDD) that not only protects rights but also enhances business competitiveness.
Building on this momentum, a Tripartite Workshop was held on 25-26 June, bringing together representatives of government, employers' and workers' organizations. The event focused on the practical application of the ILO MNE Declaration in the national context, as well as the complementary roles of government, employers, and workers in building an enabling environment for responsible business conduct.
Vice Minister Inthalath stressed the value of shared understanding in advancing national strategies. "This workshop provides a valuable opportunity to strengthen our shared understanding of responsible business practices, investment, and trade-guided by the ILO MNE Declaration-and to work together in drafting a national roadmap that promotes sustainable and responsible business practices, investment and trade for the realization of decent work and inclusive growth in Lao PDR."
Vanthong Sithikoun, Vice President of LNCCI, reaffirmed the private sector's commitment: "LNCCI remains committed to supporting the business community in contributing to decent work, fostering inclusive economic growth, advancing human capital development, and broader societal progress in Lao PDR".
Participants engaged in active discussion and identified priorities that can be advanced by fostering responsible business practices, including job creation, strengthening occupational safety and health, social dialogue, collective bargaining, skills development and social protection. To support this, participants expressed interest in appointing a national focal point for the promotion of the ILO MNE Declaration and RBC for decent work and recommended continuing the discussion through the existing national tripartite committee mechanism.
Xiaoyan Qian, Director of the ILO Country Office for Thailand, Cambodia and Lao People's Democratic Republic, noted that strengthening responsible business conduct is particularly timely as Lao PDR moves toward graduation from Least Developed Country status.
"The ILO remains committed to supporting the Lao People's Democratic Republic in building an enabling environment where enterprises contribute meaningfully to decent work and long-term development," she said.
