Our belief is that if businesses in Lao PDR are to grow in a sustainable way, they need to become more competitive. BAF II aims to support eligible Lao companies, including SMEs, to increase their competitive advantage, and thereby grow into larger and more sustainable businesses.


The objective of BAF II is to support private sector companies and SMEs to build their skills and expertise so that they can become locally, regionally and internationally competitive. We do this by providing matching grants that reduce the cost of hiring technical advisory services aimed at improving competitiveness.

To help businesses identify what kinds of technical advisory assistance would be most effective, we also provide, free of charge, some basic mentoring support on your company’s growth plan.


BAF II provides matching grants to cover 50% of the cost of specific and tailored technical assistance – or ‘business development services’ – that a company needs to become more competitive and grow.

Examples of the kinds of technical assistance BAF II is willing to co-fund include:

• Attaining quality standards needed to enter new markets or attract new customers
• Strategic or technical management guidance relating to the business field(s) in which you operate
• Up-grading ICT and internal work processes
• Improvements in production efficiency and competitiveness
• Improvements in branding and marketing
• Creating better market linkages and export promotion
• Developing products or services that reduce the need for imports
• Pursuing new innovations in business practices, products or services

BAF II introduction Video

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Please note: The business advisory services of BAF II are always provided free of charge. There are also no application or processing fees to be incurred when applying for a matching grant. If any firm or individual claiming to represent BAF II, or offering to facilitate a connection with BAF II, requests a service fee or charge of any kind, please contact us immediately. Our contact details are provided on the contact us page of this website.

BAF II operates a grievance redress mechanism' (or GRM) for anyone who wishes to submit a complaint or concern about BAF II, which will then be investigated. If you wish to submit a complaint or concern, please complete the boxes below and press send. Submission of your name and email is optional, should you wish to remain anonymous. But if you wish to receive a reply, please provide some means by which we can contact you. Please note that for BAF II grantees dissatisfied with the grant service, they should refer to the bottom of the 'Services' page where we explain how we work, and the process for companies wishing to submit a complaint about BAF II's service provision.