Laos Foreign Trade Strategy Research

Laos is a landlocked country in the less developed the socialist system. The main development of Laos social economy is agriculture. The development of industrial foundation is relatively weak. Laos has begun to implement the reform and opened since 1986 and built up the system of market economy, the economy has been rapidly growing and the foreign trade is continuously expanding. To promote the Laos economic development is significant. Especially, after Laos has joined the association of south-east Asian nations.The development of foreign trade has been a steady rise which is gradually becoming one of the main powers to promote the development of the economy. Therefore, in-depth study, Laos foreign trade strategy has become the significant interest. This article through the bas is of deep understanding the development of Laos foreign trade, the first, in-depth analysis and the summary of foreign trade strategy related theory, deepens the understanding of different economic development stages theoretically choose different foreign trade strategies. Moreover, analyzing international trade development strategies, implementation experience, observing poverty in Africa, abundant oil resources in the Middle East, the rapid development of China, Japan and South Korea as reference object gave insight into nature of trade and economic development around the globe. Laos will not be drawn from the rich natural resources endowment as foreign trade. It can avoid falling into the trap of comparative advantage, but should focus on the development of labor-intensive industries and the importance of the development of new industries for realizing a reversal of the endowment to prepare. Secondly, though the foreign trade development and the current situation of Laos, the analysis of the structure of foreign trade in Laos has been made with deep exploration of the advantages and problems of aos in the economic development. Finally combining theoretical part and the international experience for reference, Laos current foreign trade development of comprehensive advantage strategy has been chosen and suggestions are proposed for Laos to implement comprehensive advantage strategy. Specific choice of individual priority and new technology industry as the leading industry, but not derive from reality, ignoring the factor that endowment should adopt diversified regional development, pool resources to develop individual industries at the same time, to implement local development have been proposed. In addition, in the process of development, the importance of trading efficiency must come together to reduce transaction costs.