Trade
During the past 30 years the global trading system has altered dramatically and this meant changes in Laos too. Business units have shifted and restructured to better work under the guidelines of the Government and to operate in compliance with the rules on goods production. Thanks to this, import-export management measures were enforced better, the foreign trade deficit rate has been reduced and exports have been promoted and have increased each year. In 1990-191 the value of imports reached USD 249.18 million and the exports were worth USD 137 million. In 2000-2001 the import value reached USD 528.27 million and the exports were worth USD 324.88 million. In 2004-2005 the import value is projected to reach USD 596 million, while exports are expected to be worth USD 420 million.
Steps and obstacles in business operations have gradually been removed and companies that run import-export businesses are encouraged to produce goods. Strategic and daily life goods are being monitored, controlled and managed better than previously and sectoral management has been improved. The Government has worked in cooperation with sectors and localities in setting up goods production projects, the production of some types of goods have been protected and measures for countering and preventing out-system trading set up. Duty free shops have been controlled and import rules are under consideration.
Many means for searching for foreign markets for Lao goods have been used, including negotiation and singing contracts with many countries; organising meetings of high-ranking officials at the macro level; creating opportunities for Lao and foreign business people and investors in order to find ways to trade and cooperate in production; negotiation for getting “Everything but Arms” from the European Union (EU); establishing Normal Trade Relations (NTR) with the United States of America; negotiation with neighbouring countries in order to accept Lao products in international trade fairs at many levels; aiming to introduce Lao goods to the world community; establishment of trade promotion centres through using the Internet to collect data and disseminate information on trade with foreign countries; and the implementation of the cooperation agreement on ASEAN Free Trade Area (AFTA).
In the future the main trade target is the promotion of exports. In the 2006-2010 period the average export growth rate is projected to reach 15.8 percent a year, while the import growth rate is expected to cover 8 percent a year, aiming to balance the values of exports and imports by 2010.

top of page