Foreign Minister Julie Bishop is likely to discuss the change in Australia's foreign aid policy during her first official visit to Laos.
Australia is one of the largest donors to the Southeast Asian country, sending more than $56.4 million in 2013/14 and $55.6 million in 2014/15.
Ms Bishop is also due to meet senior female Laos officials on Friday to discuss promoting women's economic empowerment.
Officials told AAP that Ms Bishop would discuss the aid policy announced in Canberra in June, which calls for a larger role for the private sector and more emphasis on "aid for trade".
It marks a shift in Australia's aid program, emphasising economic diplomacy, growth as a way to eradicate poverty, and promoting economic development and empowerment.
The federal government has said the policy aims at innovative ways to engage the private sector, with a goal of increasing the budget devoted to "aid for trade" from 12.5 per cent in 2014 to 20 per cent by 2020.
The new policy has been welcomed by Australian business in Laos. Australia New Zealand Business Association president Richard Taylor said a number of organisations that provided assistance to Laos would also wish to channel their skills into the private sector.
Ms Bishop, in Laos after visiting Myanmar (Burma), is also looking to promote women's economic empowerment through education, trade facilitation and rural development programs.
Australia's investment in education in Laos has focused on ensuring girls remain in school, sports to recruit and train female teachers, and other areas of educational development.
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