In Lao People's Democratic Republic(PDR), the value of trade has risen rapidly over the lastdecade with both imports and exports increasing by averageannual rate of 24 percent. This report examines the tradelogistics of Lao PDR. A trade and transport facilitationassessment was performed using a standardized toolkit andmethodology developed by the World Bank to evaluate thequality of the logistics services. The assessment focused onthe services used by these trades and the corridors used bythese services. The assessment gave specific attention totwo constraints on trade, the location of the country andthe size of the trade. The study is organized in threeinterrelated parts: assessing the performance of thelogistics sector; the international trade corridors linkingLao PDR to trade gateways in Thailand; and the supply chainsused for distribution of exports. This report is presentedin four sections. The first part examines the foreign tradeof Lao PDR, the opportunities for growth and the logisticsservices in the movement of imports and exports between thecountry and its major gateways. The second section evaluatesthe performance of the corridors connecting the majororigins and destinations in the country and the principalseaport used for international trade. The third sectionanalyses the structure and performance characteristics ofthe supply chains used for selected trades and theimplications for restructuring to support growth in theexport trade. The final section presents a series ofrecommendations for improving the competitiveness of theexports through improvements in the structure of the supplychains, the logistics services used by these supply chains,and the corridors used by these supply chains.
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