The Lao government will bolster a promotion fund designed to support small and medium enterprises ( SMEs) ahead of ASEAN Economic Community (AEC) integration in 2015, according to state-run daily Vientiane Times on Tuesday.

SMEs Promotion Department Deputy Director General Keomolakod Sitlakone said that the government had set up the promotion fund to make it easier for SMEs to access finance. The comments came during a meeting to review Laos' ASEAN activities in the lead up to AEC integration.

SMEs are integral to the country's development since they represent approximately 90 percent of business in Laos, Keomolakod said.

According to local media, it is expected more than 240 billion kip (30 million US dollars) will be allocated to the fund.

"We have initiated discussions with the World Bank and the bank was pleased to offer support," Keomolakod said.

The 30 million US dollar contribution will come from a variety of sources including the World Bank, SMEs and other financial sources, he said.

The Lao Finance Ministry has provided 16 billion kip to the Lao Development Bank since the fund was established in 2010. In November 2013, the Asian Development Bank (ADB) provided 120 billion Lao kip (15 million US dollars) worth of low interest loans for the fund.

Targeted SMEs will receive subsidized consultancy services thanks to the government's Business Assistance Facility Fund supported by the World Bank.

The Lao government has also begun the establishment of a credit fund that will guarantee loans for businesses with good profit forecasts but insufficient assets to use as a guarantee.

Seven SMEs centers run by both state bodies and business sectors have been established to provide consultation and training to business owners.

Deputy Minister of Foreign Affairs and Head of ASEAN Senior Officials for Laos Alounkeo Kittikhoun presided over the meeting and asked participants to identify necessary actions in preparation for regional integration.

Alounkeo stressed the need to identify regulations that needed improvement and to find solutions while supporting business sectors.