Information derived from sanitary andphytosanitary (SPS) surveillance and monitoring activitiesis an increasingly important requirement for market accessand a crucial input for risk management and policymaking.This study report was undertaken with resources provided bythe trade development facility multi donor trust fund toassist the Government of the Lao People's DemocraticRepublic (PDR) in assessing minimum levels of publicoperational funding needed to expand surveillance anddiagnostic activities related to the management of SPS risksin Lao PDR. It provides policy options and recommendationsfor expanding the scope of current SPS activities, andassessments of additional operational costs needed forsustainably performing the recommended expanded activities.This introductory chapter describes SPS activities ingeneral and the growth of SPS capacities in Lao PDR. Chaptertwo describes the scope and methodology of the study.Chapter three presents a basic discussion of issues andbroad estimates of costs of laboratories and testing.Chapters four-six discuss present activities undertaken inthe areas of food safety, plant health, and animal health,respectively, together with recommendations for theirexpansion and corresponding cost estimates. Chapter sevenpresents a summary of recommendations and conclusions.