Lao PDR’s Perspective on ITA 
Accession
ITA Symposium: 25thAnniversary of the Information Technology Agreement
By: Santisouk PHOUNESAVATH
Deputy Director General
Department of Foreign Trade Policy
Ministry of Industry and Commerce
17 September 2021
RD/IT/46Outline Presentation
1.The Importance of ITA Accession for Lao PDR
2.Benefits and Challenges
3.Lao PDR’s Way Forward
1. The Importance of ITA Accession for Lao PDR
➢Lao PDR, as LDC -believes that the development of IT capacities is becoming one of the key motors 
driving its economy toward to digitalization of economy; 
➢In addition to our Digital Economy Strategy, we have promulgated: 1) Law on Telecommunications; 2) 
Law on Information and Communication Technology; and 3) Decree on E -Commerce to increase access 
to information technology -to ensure that Lao PDR will be included in global value chains in this sector. 
➢Participation in both ITA agreements -logical extension of our efforts to develop our digital economy 
and to provide the private sector with legal security for potential investments.
➢Sees that investment and technological assistance are highly important.
➢Ensuring a favourable policy environment is the best approach to attract 
foreign investment, especially, during and post -Covid 19 pandemic. 
➢Not because we see other countries in the region (ASEAN) or other WTO join, nor 
we want to be the first LDC to join this ITA.
➢Bring development potentials in terms of attracting investment, possibilities of 
integrating into global value chains and spurring economic efficiency and 
productivity .
➢Lao PDR is expected to graduate from its LDC status in the coming years: 
-New challenges and uncertainties will require continued transformation of our economic fabric and 
the necessary adaption of it to evolution of technology and the market environment1. The Importance of ITA Accession for Lao PDR (Cont.)1. The Importance of ITA Accession for Lao PDR 
(Cont.)
•Currently there are 11 SEZs in Lao PDR
-They can be industrial zones, export processing zones, or zones for industries 
specializing in technology and information development; services, trade or tourism
-Nikon Corporation (2013) and HOYA Laos Co.,Ltd . (2019) opened new factory.   
•Electrical machinery and equipment exports have grown rapidly, becoming the 
leading manufactured export in 2016.
•Much of this expansion has been due to the opening of SEZs.
•In electronics -related industries, export growth has continued to increase 
dramatically since 2014. e.g. HOYA 
1. The Importance of ITA Accession for Lao PDR 
(Cont.)
-Japanese companies are particularly visible
-producing a wide range of products from wire harnesses to temperature 
sensors, charging resistors and coils
2. BenefitsA. Economic 
•Joining ITA agreements are not access to markets -but efficiency of a local economy + participation in value 
chains.
•Participation in both ITAs will ensure no -discriminatory access to the Lao market and ensure coherence, 
simplicity and implementations of our regional and global commitments. 
•Enhancing productivity, innovation and competitiveness in the ICT sector, services and other related 
manufacturing sectors using ICT as inputs. Increase of exports -both goods and services. 
•Benefits for consumers, producers / SMES better access to and use of ICT. 
•Advancing participation in global ICT chains. 
•Guarantee of predictable conditions for investors in ICT sectors. 
•More affordable ICT (especially for SMEs) -improve access to the information and customers world -wide, 
reduction of operating costs.
•Enhance ICT trade in goods and related services, e.g. E -commerce, ICT related services. B. Social
•Improved quality of life, increased and improved level of information, connectivity, IT skills 
and inventive thinking. 
•Enhanced education.  
C. Political 
•Lao PDR had concluded the RCEP Agreement in 2020, there is a need to adjust the foreign 
trade policy associated with the IT products/sector to enhance the RCEP regional value 
supply chain. 
•Coherent with AEC 2025 Blueprint spire to boost ASEAN towards a digitally -enabled 
economy that is secure, sustainable and transformative and to further leverage ICT for an 
innovative, inclusive and integrated ASEAN.  2. Challenges
➢Although the National Assembly Committee of Lao PDR has agreed in 
principle on Lao PDR's participation in both ITA Agreements and our 
proposed offer .
➢Main concerns remain regarding the loss of tariff revenues
➢The backloading of implementation of tariff reductions on some tariff lines 
takes into account the COVID -19 crisis and future uncertainties. 
➢Therefore, carefully identified those tariff lines and requested a phase out 
period .
2. Challenges (cont.)
➢The specific request aims to avoid any unexpected outcomes if its 
recovery fails to materialize as planned. Therefore, cannot commit 
itself at this time of uncertainty, to a faster implementation of the 
commitments. 
➢Lao PDR, like most LDCs, is facing major social and economic 
challenges caused by the COVID -19 pandemic . 
➢The recovery from the pandemic must be underpinned by renewed 
efforts to move towards the sustainable and inclusive transformation 
of LDC economies .3. Lao PDR’s Way Forward
➢We have answered questions from members (EU, US, Japan and China)
➢Specific request: transition period for 41 ITA and 48 ITA Expansion tariff lines
-corresponds to only 10.28% of the total of 399 ITA tariff lines 
-8.45% of the total of 568 ITA Expansion tariff lines 
➢From 2017 to 2019: 
-the 41 tariff lines of ITA cover 0 .34%or 18,628,000 USD of Lao PDR ’s total 
imports
-while the 48 tariff lines of ITA Expansion cover 0 .45%or 25,252,000 USD of 
Lao PDR’s total imports .
-We hope and confident that members will apppreciate the sincere effort 
made by Lao PDR’s offer and understand the need for the flexibilities 
requested due to its development stage and present uncertainties.➢Hope to join the agreements and be announced at the  MC 12.
➢Lao PDR counts on all Participants' support for a smooth conclusion of its participation 
process.
➢Good momentum for the members as well as the organization to show the world that we 
still believe in the multilateral trading system . 
➢Raising an awareness for the public and private sector on Lao PDR’s accession to the 
agreements.
➢Organize an internal symposium of Lao PDR’s accession to the agreements -inviting the 
local, regional, private sector to ensure that the measures we are taking will promote ICT 
sector and yield the expected benefits3. Lao PDR’s Way Forward (cont.)THANK YOU
For your kind attentionMultilateral Trade Division
Department of Foreign Trade Policy
Ministry of Industry and Commerce
www.laoftpd.comFurther information please contact:
http://investlaos.gov.la/lo/where -to-invest/special -economic -zone -sez/
http://www.laos -vita.com/index.html