Agreement on Management of Small Family-Scale Factories
关于小型家庭式工厂管理的协议
ຂໍ້ຕົກລົງ ວ່າດ້ວຍການຄຸ້ມຄອງໂຮງງານຂະໜາດນ້ອຍແບບຄອບຄົວ
Summary
This Agreement, issued by the Ministry of Industry and Commerce of Laos on May 11, 2011 (No. 0878/MOIC), aims to regulate and manage small household factories not covered by the Law on Processing Industry, defining their classification, operating permits, standards, changes, rewards, penalties, and legal responsibilities.
Articles
Article 1
Purpose. This Agreement aims to stipulate the principles for managing and regulating small factories that are not provided for in the Processing Industry Law; its purpose is to enable them to operate legally in accordance with production standards, without causing environmental impact, ensuring lawful and compliant factory operations, while facilitating commodity production and business activities, promoting the expansion and development of products in quantity and quality, with a view to meeting social needs and conforming to government policy.
Article 2
Definition of a small family-type factory. A small family-type factory refers to a factory whose premises, workshops, and machinery, tools, and equipment used are less than 5 horsepower, or which employs fewer than 10 workers, engaged in the production, repair, or transformation of raw materials or semi-finished products, by adding value to the products, processing them from their original state into finished goods, thereby becoming ordinary commodities. In cases where the products possess artistic characteristics, embody the features of handicraft skills, or have a nature reflecting unique culture and ethnic identity, such products are called handicrafts.
Article 3
Scope of Application. This Agreement applies to the management and promotion of business operations of small household-type factories nationwide that use machinery of less than 5 horsepower or employ fewer than 10 workers. However, small wood processing factories are excluded and shall comply with Agreement No. 0719/Industry and Trade dated April 3, 2009, on Standards for Wood Processing Industrial Factories.
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