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Economic
structure
The economic structure of the Lao PDR consists of many
sectors under different forms of ownership and economic
organizational system, but these sectors are equal before
law and operate under the management of the state with
the view to freely cooperate and compete in their business
activities.
Legal
system
As we have seen the Government wish to encourage competitiveness
in the market. This is in line with improving economic
relations with other countries; the National Assembly
has promulgated a number of laws and regulations with
the view of ensuring trade and investment in Laos. At
present we have more than 40 laws including investment
and business law.
Monetary
and banking system
The policy of foreign exchange management is moved to
a floating exchange rate system since 1995. In the field
of broadening the economic relation with foreign countries,
the Government extended business licenses to local and
foreign banks with purely conducted commercial banking
activities. Up to now the banking system in Lao PDR
is comprised of the Central Bank, Lao state owned commercial
banks, seven branches of foreign banks and Lao private
commercial bank.
Customs
regulations
Under the custom law of the Lao PDR the totally of tariff
lines is 3552 with tariff rate ranging from 5%-40%.
More than 50% covered the major part with 5% tariff
rate and others with 10% and 20% tariff rates. The goods
imported to Laos and exported from Laos are required
to obtain the licenses and must be declared at the custom
office. The import duties, which have only a mild protective
component, are collected at regional customs posts,
based on the valuation method of the GATT (General Agreement
on Trade and Tariff).
Trade
expansion policy
Since 1986 Lao PDR has implemented a new economic mechanism.
Thus plans were set in motion to transform the centrally
planned economy to a market economy under the direct
management of the state. All economic development and
to compete and freely cooperate in their business activities.
Therefore since this time Lao PDR has been steadily
progressing towards a market economy.
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