The introduction of NEMs and the membership of ASEAN encouraged the economic
activities and economic growth in Laos since the late 1990. However, to maintain a high rate
of economic growth, a high level of investment and natural resource allocation is required.
These activities lead to an increase in the level of environmental pressure, including
deforestation and increasing the level of carbon dioxide emissions. These are also become the
key challenges for current and future development of Laos.