The institutional infrastructure in place affects the way policy-makers promote the use of certain modes of transport and therefore organizations such a trucking associations and freight forwarders’ association make up a crucial component not only serving as a coordinator between the different organizational levels the country’s transport sector is divided in but also to promote the transport service industry within the overall development policy formulated by the government which is to transform Laos from a landlocked to land-linked. Institutional infra- structure also encompasses the availability of credit, and provision of efficient markets.
Two major strategic economic groupings provide the framework for improved regional transport integration in the region: the Association of South East Asian Nations (ASEAN) framework agreements and the ADB led Greater Mekong Subregion initiatives. Acceding to United Nations agreements on international trade and transport would also be of benefit the Lao capability to reach global markets.