After years of preparation, Laos is on the verge of joining the World Trade Organisation (WTO), a milestone that it owes to a slew of reforms it must now enforce.
Fifteen years since it first applied to join the global trading body, membership negotiations with Vientiane finally concluded last week.
The deal is now all but done: the accession is set to be confirmed by the 157-member WTO at a meeting on October 26, before being ratified by the Laotian parliament by the end of the year.
The accession process "has been long and tedious", said industry and commerce minister Nam Viyaketh.
But it has also "provided us the necessary basis to achieve our goal" of graduating from least developed country status by 2020, the official said.
Laos - one of the region's poorest nations, and the only one in Southeast Asia yet to join the WTO - has enjoyed robust economic growth of more than 7 per cent a year over the past decade.
But about 28 per cent of the population still lives in poverty, according to a 2008 estimate from the World Bank. The bank believes the country is "on track" to achieve its 2020 goal.
Entry into the WTO club would bring with it the promise of increased trade volume and new trade partners, as well as the prospect of fresh investment into the country, analysts said.
"The WTO has forced the country's leaders to remove an outdated and incomprehensible legislative framework" and offer more "guarantees" to investors, said one foreign expert.
Since negotiations got under way properly in 2004, Laos has adopted dozens of laws to bring it in line with WTO requirements in areas such as investment, food safety, animal health, import and export procedures and intellectual property rights - a flurry of activity rarely seen in the communist state.
Yet it remains to be seen how well these new regulations will be implemented.
The impact of the WTO entry talks on the economy "has been limited, mainly as the government is reluctant to trim the cumbersome and extensive bureaucracy," argued Arvind Ramakrishnan, principal Asia analyst at risk analysis firm Maplecroft.
It is a view not shared by Nicolas Imboden, executive director at Ideas Centre, a Swiss non-profit group that has been advising the Laos government during its accession talks.
"If they apply and implement seriously the new policies and laws - and I don't doubt one minute that they will - it is a market economy," Imboden said.
Laos suffers from a lack of infrastructure and diversified industry. Just two companies are listed on its fledgling stock market, which opened last year.Topics: World Trade Organization Laos International Trade