The Laos government introduced more pragmatic development policies in 1980 and has been implementing them. By 1986 it introduced market-oriented reforms. This opened the channels for private and state enterprises and they operated side by side. The government also encouraged foreign investment. Besides energy production and mining, Lao is mainly into food processing (rice milling and beverage production—mostly beer and soft drinks), sawmilling, the production of building materials (e.g., nails and brick). It also manufactures a variety of light consumer goods (primarily plastic products, tobacco and cigarettes, and detergents). Garment production is majorly for export, has been expanding rapidly. Laos manufacturing sector also includes handicrafts.
Foreigners can invest in a number of businesses. They can do business by being a sole proprietor, having limited liability company (including foreign-owned company and joint-venture company), partnerships, branch of a foreign corporation, a representative office, or a business cooperation by contract.