Since 1986, the Lao People’s Democratic Republic (Lao PDR) has been making the transition from a centrally planned economy to a market economy. Under the aegis of ASEAN and WTO, the country is increasingly integrating into regional and global markets. The Lao Government has set ambitious targets for economic growth and is hoping to raise the country above the status of ‘least-developed country’ (LDC) by 2020. For this to happen, it is particularly important that the business and investment climate is improved and business competitiveness increased.

The priority area of sustainable economic development focuses on promoting private sector businesses, on improving the framework for business, and on supporting small and medium-sized businesses. It also supports training for the working population and additional training for managers and experts in both state and private-sector organisations. The priority area promotes the development of the country’s financial system, especially access to microfinance in rural regions.