Demonstration companies showcase productivity gains in Lao PDR

Demonstration companies showcase productivity gains in Lao PDR


Lao PDR joined the APO in 2002. Since then, the Lao National Productivity Organization (LNPO), alongside the Department of Small and Medium Enterprise Promotion (DOSMEP) and the Ministry of Industry and Commerce, has contributed greatly to advancing national productivity, quality and technology in the country’s public and private sectors.



Productivity experts from Lao PDR were quick to make use of the APO’s wealth of training and knowledge- sharing resources.


The LNPO concentrated its efforts on testing initiatives through multiple demonstration company projects.


Many of the demonstration companies are now in receipt of internationally recognized quality certifications.


Lao  PDR  attributes impressive productivity gains  to APO



LNPO working group discuss how to promote productivity initiatives

SINCE JOINING THE APO IN 2002 , the LNPO has helped

strengthen productivity, technology, and innovation efforts in Lao PDR, particularly through technical assistance. It has received a lot of support from the APO through seminars, training sessions, study tours, exchange programs for high-level delegates, consulting services and knowledge-sharing activities.

As a result, the LNPO has been in a position to provide staff from multiple organizations the means to develop their own productivity practices and roll them out across the companies they represent. These efforts are especially evident in the achievements of Lao PDR’s demonstration companies.

In one example, significant productivity gains were recorded in five demonstration companies that applied the 5S and Kaizen methods. Out of these five organizations, three have been awarded ISO 9001-2000 certification In 2011, four companies from Lao PDR’s food and beverage sector

completed a demonstration program in 5S and good manufacturing practices (GMP). One of the companies was eventually awarded GMP certification.

Later, in 2014, the LNPO established a model food safety management system using the Hazard Analysis Critical Control Point (HACCP) standard for food processing. The model was successfully trialed by three companies: the Leo Trio Coffee Factory, the Houng Heuang Sin Padek Factory, and the Hong Tae Meatball Factory.

Over the past 10 years in particular, the LNPO has achieved a great deal, but it’s important not to overlook the challenges it’s faced, both internally and externally.

Not without challenges

Over the past 10 years in particular, the LNPO has achieved a great deal, but it’s important not to overlook the challenges it’s faced, both internally and externally.

Internal challenges included an unfavorable environment for the promotion of productivity initiatives due to a shortage of qualified staff, budget constraints, unfocussed promotion efforts and a lack of enthusiasm to champion the efforts.

Externally, the LNPO encountered many obstacles when attempting to raise awareness and develop a wider understanding of productivity issues amongst people in both the public and private sectors. The LNPO struggled to promote productivity initiatives and was forced to navigate numerous coordination hurdles.

In the past, the implementation of productivity work was not carried out according to a specific plan that identified guidelines, methods and sources of funding for promotion. One key issue was a lack of structure, which made it difficult to undertake a full range of activities related to productivity promotion, training, and consulting.

In addition, past activities lacked monitoring and previous projects weren’t evaluated, making it difficult to determine the next phase of promotion or how best to continue with the initiative.

Currently, the LNPO and the APO are working together to develop a National Productivity Master Plan for Lao PDR. This comprehensive plan will help Lao PDR meet the challenges of the past to ensure more efficient and effective implementation of productivity-related work.