ILO-Led Project Strengthens Responsible Business Practices in Laos Ahead of LDC Graduation

One of the project’s most notable achievements is the establishment of a national pool of facilitators within the Lao National Chamber of Commerce and Industry (LNCCI).

Responsible business conduct (RBC) in the Lao People’s Democratic Republic has gained significant momentum following the successful completion of a two-year International Labour Organization (ILO)-led initiative aimed at embedding decent work principles across supply chains.

The project, “Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II)”, funded by the Government of Japan, has delivered wide-ranging outcomes that strengthen institutional capacity, policy coordination, and enterprise-level adoption of ethical business practices.

Building Capacity Across Government, Business and Labour

Over the course of the programme, 771 participants—including 325 women—from government agencies, employers’ and workers’ organisations, and private enterprises enhanced their understanding of responsible business conduct and international labour standards.

The initiative focused on equipping stakeholders with practical tools to:

• Promote labour rights and decent work

• Implement human rights due diligence in business operations

• Align with environmental, social and governance (ESG) principles

This broad-based capacity building marks a significant step toward mainstreaming RBC across Laos’ economic ecosystem.

Creating a Sustainable Training Ecosystem

One of the project’s most notable achievements is the establishment of a national pool of facilitators within the Lao National Chamber of Commerce and Industry (LNCCI).

This network enables:

• Ongoing delivery of RBC and ESG training beyond the project’s lifespan

• Expansion of knowledge-sharing across sectors and regions

• Institutionalisation of responsible business practices within the private sector

By embedding expertise locally, the initiative ensures that progress will continue without reliance on external support.

Strengthening Labour Inspection Nationwide

The project also enhanced the capacity of labour inspectors across all 18 provinces, enabling them to:

• Conduct more effective workplace inspections

• Raise awareness among enterprises about international labour standards

• Support compliance with national and global regulations

This development is critical in bridging the gap between policy commitments and real-world implementation.

Advancing a National Roadmap for Responsible Business

In parallel, the initiative supported policy dialogue and coordination among key stakeholders, contributing to the development of a draft national roadmap for responsible business practices.

The roadmap, guided by the ILO Tripartite Declaration on Multinational Enterprises, aims to:

• Align RBC with Laos’ trade and investment strategy

• Integrate responsible practices into national economic planning

• Support the country’s transition as it prepares for graduation from Least Developed Country (LDC) status in 2026

High-Level Engagement at Closing Ceremony

The project’s achievements were reviewed during the Final Project Advisory Committee (PAC) Meeting and closing ceremony, held on 11 March 2026 in Vientiane. The event brought together representatives from:

• The Ministry of Labour and Social Welfare

• LNCCI

• The Lao Federation of Trade Unions

• The Embassy of Japan

• The ILO

Stakeholders reflected on progress and identified pathways to sustain and scale the initiative’s impact.

RBC as a Strategic Economic Priority

Government officials emphasised that responsible business conduct is becoming central to national labour and economic policy.

“Promoting responsible business conduct and labour human rights due diligence is an important priority,” said Vice Minister Phongsaysack Inthalath. “We must continue translating these lessons into practical action.”

Japan also reaffirmed its support, highlighting the link between RBC and economic competitiveness.

“Demonstrating strong commitment to responsible business conduct will strengthen Laos’ position as an attractive destination for trade and investment,” said Takuro Tasaka of the Japanese Embassy.

A Shift in Mindset: From Compliance to Investment

ILO officials noted a growing shift in perception among stakeholders, with RBC increasingly viewed not as a regulatory burden but as a long-term investment in sustainable growth.

“What gives confidence is the shared understanding that responsible business conduct is an investment for the future,” said Xiaoyan Qian, Director of the ILO Country Office.

Positioning Laos for Sustainable Growth

As Laos approaches a critical economic milestone with its upcoming LDC graduation, the project’s outcomes position the country to:

• Meet rising global expectations on labour and human rights standards

• Strengthen supply chain credibility

• Attract responsible investment

• Enhance long-term economic resilience

The completion of the project marks not an endpoint, but a transition toward locally driven, sustainable implementation of responsible business practices.