A market on the Lao-Thai border. Photo: Wikimedia Commons

The Ministry of Industry and Commerce chairs the Trade & Private Sector Working Group. Germany and the European Union are Co-Chairs.

The private sector, both domestic and foreign, and including small and medium-sized enterprises (SMEs), is playing an increasing role in Lao PDR’s economy, which is one of the fastest growing in South East Asia year on year.

Key outcomes and output indicators show progress, in particular in the trade and investment environment and sector competitiveness.

1. Openness ratio (trade share in GDP percent)
2. Increase in new businesses
3. Reduction in business regulatory compliance
4. Reduction in time and cost to start a business
5. Reduction in time and costs for cross border trade
6. Reduction in average time to import, export, and transit (Time Release Study – TRS)
7. Real annual productivity growth
8. Growth in investment in selected sectors
9. Real annual employment growth
10. Increased survival rates for existing and new product-destination-market-combinations

The National Trade and Industry Development Strategy to 2030 and Plan of Action 2026-2030.

Vision and Priorities

The sector’s strategy by 2030 defined in the 10^the Five-Year Sector Development Plan (2026-2030) is “to create a more diversified economy with creative, productive, and competitive enterprises through creating a conducive environment for enterprises.”

The sector’s goal by 2025 is to develop a      Sustainable trade and business development for poverty reduction and LDC graduation with a modern, diversified economy

The priority areas to achieve the sector’s goal and vision are:

1. Enhance      trade and investment environment through trade policy, trade facilitation, and regulatory impact assessments.
2. Enhance      competitiveness of Lao enterprises, particularly      agribusiness, tourism, and manufacturing

Expected key outcomes of each priority area are:

1. The trade and investment environment strengthened through trade policy, trade facilitation, regulatory impact assessments.
2. Competitiveness improved in agriculture, tourism, and manufacturing.

Lessons and Challenges

Despite significant progress, many regulatory and policy issues identified in the previous plan remain to be addressed     . Principal lessons from the implementation of the previous plan include:

• Numerous priorities listed did not address coordination challenges and sequencing;
• The previous plan prioritized increasing public-private dialogue including engagement with civil society on the importance of mainstreaming trade, reducing trade costs, and increasing regional and global trade;
• Many of the activities listed in the previous plan are complex and require high levels of technical skill and experience to implement successfully;
• Many of the key stakeholders faced technical challenges in implementing the recommendations; and
• Limited inter-agency coordination and absence of monitoring system is considered an important factor limiting achievement towards      the defined outcomes.

Other sectors’ support is necessary to:

1. Achievement of all key development goals and strategic outcomes will require strong support and coordination with concerned line Ministries at both      national and local level.

Support Needed

From the Government:

• Follow up with key concerned agencies in implementing relevant priorities in their sector.
• Maintain commitment to implement necessary legal and regulatory reform agenda.

From Development Partners:

• Technical and financial support for the implementation of defined priorities in the next 5-year plan.

Sub-Sector Working Groups

 There is no Sub-Sector Working Group

SWG Secretariat Contacts

• Mr. Sengphanomchone Inthasane, Director, DPC, Tel: 021 453982 / 020 9725 5780;
• Mr. Christian Olk, First Secretary, Head of Development Cooperation, Tel: 020 7812 2834;
• Ms. Lattanaphone Vongsouthi, Chief of the National Implementation Division, Permanent Secretary Office, Ministry of Industry and Commerce, Tel: 021 413916, Mob. 020 23241569;
• Ms. Thipphaphone Vongsay, Senior Private Sector Development Consultant, NIU-MOIC, Tel: 021 413916, 020 56224916.