The rapid adoption of digital technologies has significantly transformed the Micro, Small, and Medium-sized Enterprises (MSMEs) sector. Digital tools, such as fintech and epayment, have become essential for maintaining relevance, competitiveness, and efficiency, especially in the wake of the COVID-19 pandemic. This shift has underscored the critical role of digital technologies in business resilience. 

MSMEs, which constitute over 90% of all businesses in the Lancang-Mekong (LM) countries, face varied levels of digital adoption. Many small businesses struggle with leveraging and integrating technology, impacting their ability to respond to economic shocks. Despite these challenges, digital connectivity can drive MSMEs to seize new opportunities, shape economies, and achieve the Sustainable Development Goals (SDGs). 

Research supported by the People’s Government of China in 2022 showed that digital technologies positively impact MSME productivity and are vital for economic growth and regional competitiveness. Enhancing digital adoption and innovation in MSMEs is crucial for achieving these benefits. The COVID-19 pandemic has accelerated digitalization, yet gaps remain, requiring more support for MSMEs. 

Prioritizing digital connectivity in the MSME sector is crucial for post-pandemic resilience in the LM countries. Regional cooperation can support MSMEs’ digital transformation, leveraging the Lancang-Mekong Cooperation and the Global Development Initiative’s focus on the digital economy and inclusion. 

The Mekong Institute (MI) addressed these challenges through a one-year project, “Scaling-Up Digital Connectivity for MSMEs in the Lancang-Mekong Countries for Post-Pandemic Resilience.” This project identified scalable digital technologies, promoted supportive policies, and engaged both public and private sectors to foster quicker economic recovery in the LM, aligning with the goals of the Lancang-Mekong Cooperation, the Global Development Initiative, and the SDGs.