H.E. Malaythong Kommasith, Minister of Industry and Commerce; senior officials; APO Secretariat staff; and other participants attend the kick-off meeting in Vientiane, Lao PDR, 12 May 2025.

On 12 May 2025, the Asian Productivity Organization (APO) Secretariat and the Lao National Productivity Organization (LNPO) jointly launched the Development of Demonstration Companies (DMP) project Enhancing Productivity for Halal Certification in Lao PDR at the headquarters of the Ministry of Industry and Commerce in Vientiane.

The event gathered 70 participants, including senior officials H.E. Malaythong Kommasith, Minister of Industry and Commerce; H.E. Bountheung Douangsavanh, Deputy Minister of Industry and Commerce; H.E. Edi Irwan Mahmud, Ambassador of Malaysia to Lao PDR; and Dr. Bounpheng Sibounheung, APO Director for Lao PDR and Director General of the Micro, Small and Medium Enterprise Promotion Agency, LNPO. Also in attendance were representatives from a halal association, small and medium-sized enterprises in Lao PDR, and the three demonstration companies: Dao-Heuang Group, Somxay Chalern Songserm Karnkased Sole Co., Ltd., and Veunkham Salt Company.

Highlights included a keynote speech by Minister Kommasith emphasizing the project’s importance, presentations from the APO Secretariat on the APO DMP program and Lao PDR’s participation, and insights from APO resource persons from Vietnam and Malaysia on halal and productivity. The event also featured an exhibition of products by the demonstration companies. Following the launch, on-site assessments were conducted at the three companies to evaluate the current situation, identify deficiencies, and develop improvement plans.

Product exhibition by demonstration companies during the kick-off meeting.

The global halal market is projected to exceed USD3 trillion by 2026, fueled by rising demand for halal-certified products across food, cosmetics, pharmaceuticals, and other sectors. In Lao PDR, the growing tourism sector and the government’s push to diversify exports have highlighted the urgent need for halal certification, especially in key export commodities like salt and coffee. However, many local businesses struggle to meet the stringent regulatory requirements and bear the high costs associated with halal certification. These barriers reduce their competitiveness and limit access to international Muslim markets.

This DMP project aims to address these challenges by helping the selected demonstration companies adopt productivity tools and methodologies to streamline their halal certification processes. The initiative will provide hands-on training and expert guidance in applying halal principles and standards while integrating productivity-enhancing techniques such as 5S, time studies, work sampling, Training Within Industry, and material flow cost accounting.

By aligning halal compliance with productivity improvement, the project not only supports companies in achieving certification but also strengthens their operational performance and ensures long-term consistency in halal practices. These demonstration companies will serve as models for other small and medium-sized enterprises, showcasing how productivity can be a catalyst for certification, quality enhancement, and access to new markets.