Developing the service sector in the Lao PDR under the conditions of the Fourth Industrial Revolution (Industry 4.0)

This scientific research aims to analyze and evaluate the development of the service sector in the Lao PDR under the trends and influence of the Fourth Industrial Revolution (Industry 4.0). The study is divided into three main parts: The first part summarizes the evolution and international lessons by studying the history of Industry 4.0, which gained prominence in 2011. It also draws lessons from the success of countries such as Russia, Malaysia, and Vietnam, which have implemented digital transformation strategies and created a "smart society" to support the new economy. The second part analyzes the growth situation in the Lao PDR from 2011 to 2024, examining empirical data of the service sector, which is a high-potential sector and most rapidly affected by 4.0 technology. The results show that the service sector plays a crucial role in the national economic structure, with a GDP share higher than the agricultural and industrial sectors. In 2024, this sector grew by 5.10%, with notable achievements in modern finance and banking, wholesale-retail trade, and information services. The third part presents perspectives and future development directions by proposing adaptation strategies to utilize opportunities from digital technology, logistics system development, and integrated tourism. However, the study also identifies significant challenges, including an incomplete legal framework to support Industry 4.0, limited capacity and awareness among personnel regarding new technologies, and obstacles in accessing capital for entrepreneurs. Therefore, the research recommends that the government and relevant stakeholders accelerate human resource development to align with the demands of the 4.0 labor market and improve public administration mechanisms to be modern and transparent. This is to encourage the Lao PDR’s service economy to be competitive at both regional and international levels. © 2025 Center for Scientific Journal Promotion.