Navigating Forex Challenges In Laos’ Garment Sector; Leveraging Receivables Finance for Enhanced USD Liquidity
Convergence Capital Group, in collaboration with the Association of the Lao Garment Industry (ALGI), successfully hosted a webinar today focused on alternative financing options for Laos’s apparel, garment, and textile companies. We appreciate the insights from ALGI President Mr. Xaybandith Rasphone, whose support and vision were instrumental in organizing this event. Convergence CEO, Cliff Entrekin, led the discussion on supply chain finance products, aimed at equipping businesses with the knowledge to ensure stability amid market disruptions and sustain growth in a competitive landscape.
Inflation in Laos, which surged to 31.2% in 2023 due to high living costs, labor shortages, and currency depreciation, presents significant challenges for manufacturers. Receivables financing offers a solution by enabling immediate USD payments for export invoices, enhancing working capital and reducing dependence on traditional local banking options. This approach not only mitigates forex risks but also strengthens supplier relationships, ensuring competitive stability in a volatile market.
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