This study aims to investigate the participation of Lao SMEs in regional economic integration. Supporting SMEs’ participation in regional economic integration is important to increase their productivity and competitiveness. However, there are various barriers that prevent this from occurring. In this study, a Logit model is applied to secondary data to investigate factors affecting exporting behaviour and preferential tariff utilization. This study finds that there are weak linkages between Lao firms and regional economic integration. Very few firms are exporting and the level of preferential tariff utilization is relatively low. Firms have a low level of awareness of economic integration and they appear to be too optimistic about its impact. It is important that policymakers should provide training on FTAs to export-oriented firms and potential exporters, together with a wider promotion of FTA utilization through media channels.