Trade & Private Sector

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

• Openness ratio (trade share in GDP percent)
• Increase in new businesses
• Reduction in business regulatory compliance
• Reduction in time and cost to start a business
• Reduction in time and costs for cross border trade
• Reduction in average time to import, export, and transit (Time Release Study – TRS)
• Real annual productivity growth
• Growth in investment in selected sectors
• Real annual employment growth
• 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.

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:

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

Expected key outcomes of each priority area are:

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

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:

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.