Overview of Services sector
Services sector plays an important role to the National Socio-Economic Development of the Lao PDR. Services sector contributes 37% of the national Gross Domestic Product in 2011. Comparing to 28% by agricultural sector and 35 % 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.
According to the General Agreement on Trade in Services (GATS) trade in services are divided in to 12 main sectors as following:
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.