Development Challenge

In Lao PDR, gender gaps in economic participation remain significant, with the Sixth National Human Development Report highlighting persistent income disparities between men and women. These differences are especially visible in business opportunities where women-owned businesses (WOBs) face structural barriers to market and networks. Many operate as informal microenterprises with limited financial literacy and access to finance due to collateral requirements, and little exposure to formal business networks. This contributes to the ‘missing middle’ phenomenon, limiting their growth or ability to compete on equal terms. 

Procurement presents a transformative yet largely untapped opportunity for women’s economic empowerment. Globally, the procurement market is worth more than ten trillion dollars by engaging public and private organizations through the exchange of goods and services. Yet, WOBs and Gender-Responsive Enterprises (GREs) receive only 1 percent of both public and private procurement opportunities. In Lao PDR, the Law on Procurement Under Governmental Budget (No. 30/NA, 2017) establishes rules to promote fair competition but contains no provisions to support supplier diversity or recognize women-owned businesses.   

This exclusion is further reinforced by limited awareness of gender-responsive procurement (GRP) among both public officials and private sector buyers. With no policies promoting supplier diversity, few actors recognize procurement as a tool to advance gender equality. At the same time, persistent barriers for WOBs, including restricted access to technology, finance, networks, continue to hinder their ability to adapt and develop competitive, inclusive business models. 

Project Background

The UN Women We RISE Together 2.0 Programme, funded through the Mekong-Australia Partnership Programme and implemented by UNDP in Lao PDR, is advancing women’s economic empowerment by facilitating equal access, participation, leadership, and benefit from expanded market opportunities in the region. This is accomplished through three interlinked outcomes to 1) create normative ecosystem by increasing awareness and institutional commitment to Gender-Responsive Procurement, 2) Aligning the market on the demand side by ensuring national procurement frameworks are anchored by regional best practices, and 3) strengthening the supply side by capacitating WOBs and GREs and creating market linkages allowing them to access procurement opportunities. These outcomes will generate systemic changes by embedding gender considerations into procurement, incentivizing inclusive sourcing by public and private buyers, and equipping WOBs and GREs to develop resilient, inclusive business models.