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Services by Sector

Overview of Services sector 

Services sector plays an important role to the National Socio-Economic Development of the Lao PDR. Services sector contributes 41.61% of the national Gross Domestic Product in 2018. Comparing to 15.71% by agricultural sector and 31.53 % by industries sector. Services sector (particularly tourism and airspace) growing at 7% rate each year and higher than goods exportation. Distribution services remains the top sector that created most jobs for Lao population and higher rate than any other services sectors. Moreover, there are many more services sector that contributes significantly to Lao economy such as: Telecommunication, accounting and auditing, insurance, banking, constructions and transportation (See the potential in each services sector at: Report on the Assessment of Potential Service Sector in Lao PDR to Generate Incomes or Provide Services abroad )

According to the General Agreement on Trade in Services (GATS) trade in services are divided in to 12 main sectors as following: 

1.Business Services;

2.Communication Services;

3.Construction and Related Engineering Services;

4.Distribution Services;

5.Educational Services;

6.Environmental Services;

7.Financial Services;

8.Health-Related and Social Services;

9.Tourism and Travel-Related Services;

10.Recreational, Cultural and Sporting Services;

11.Transport Services; 

12.Other Services Not Included Elsewhere.

Regarding services agreement negotiations are mainly focus on Mode 3 such as: enterprise establishing (Commercial presence) which open more freely. For Mode 4 for instance: Labor movement (Presence of natural persons) is still having several limitations. For two other Modes are generally open such as: Mode 1: Cross-border supply and Mode 2: Consumption abroad.