Overview Lao Economics

In order to be able to cope with the challenges of globalization and free market-interdependence, The Lao Government is of the view that economic reforms, trade liberalization and integration with the world economy are necessary. We also firmly believe that international trade and foreign investment are essential for faster economic development and poverty reduction. We recognize that private sector has a key role to play in this process, and the role of government is mainly to provide a conducive policy framework for trade and investment to take place efficiently. It is in that context, that the Lao Government, since the mid 1980s has been pursuing an open door policy.
The Real GDP growth in Lao PDR rose to 7 percent in 2005, from 6.4 percent in 2004. All sectors grew rapidly- with industry growing fastest but from a low base. The share of industry in now more than 25 percent of GDP.

The international trade also has grown substantially. In 2005 as compared to 2004 total export earning increased by more than 30 percent: from US$ 500m to about US$660m. at the same time, import went up by 14 percent: from US$977m to US$1,116m. ASEAN is the major trading partners.

The stimulus of large projects in mining and power sector more than off