4. CONCLUSIONANDPOLICYRECOMMENDATIO

4. CONCLUSIONANDPOLICYRECOMMENDATIONS
Integration and participation in the regional production network is significant for the Lao PDR’s industrialization. FDI remains the main driver of the industrialization and technology development of the country. Even so, countries in the Mekong River basin and the ASEAN region are the main connecting chain of the Lao PDR to the global production network. This is because the main sources of the intermediate goods used as raw materials for industrial production in the Lao PDR are countries such as Thailand, Malaysia, Vietnam, and China. Therefore, in respect to the results of the study above, in order to promote industrialization in the Lao PDR, the following recommendations are provided for consideration: