English | ລາວ
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Aside from being a member of the World Trade Organisation (WTO) since 2013, it also has:
Lao PDR: Redefining Future Growth
Lao PDR continues to demonstrate resilient, sustainable and inclusive economic growth, bucking the global downturn and is well on its way towards graduating from Least Developed Country status by 2024.
Backed by outstanding progress in the last 20 years, Lao PDR is in prime position to emerge as an economic and strategic investment gateway to the ASEAN market, largely due to the 8th National Socio-Economic Development Plan (NSEDP) 2016-2020 guiding policy priorities across government to achieve the country’s economic and development transformation targets.
Driving a Dynamic and Resilient Economy
With a GDP that has more than doubled since 2010 and projected growth to reach US$27 billion by 2022, Lao PDR is fast cementing its position as one of the fastest growing economies in this part of the world, leveraging on its strategic position as a prime spot for cross-border investments and exports to neighbouring countries.
Source: World Bank National Accounts
The Lao PDR economy continues to be experience dynamic growth and resilience to withstand global pressures, largely due to the following factors:
Shaping a Trade and Investment Destination of Choice
Lao PDR is gearing up to transform into an upper middle-income economy through its Vision 2030.Vision 2020 aims to quadruple per capita GDP and GNI while simultaneously increasing foreign direct investments (FDI) by shifting to new areas of comparative advantage and creating enabling environments for foreign and domestic partnerships.
Source: ASEAN Stats Database
Lao PDR enjoyed an exponential growth in FDI of 6.9% between 2010 and 2015, reaching over US$1.1 billion in 2015. Looking ahead, to attract quality Foreign Direct Investment (FDIs), Lao PDR has also taken progressive steps to diversify its economic base as a means for sustained and robust growth, from electricity generation, agriculture and mining sectors, which took up close to 65% of total FDI in 2015, to more into less-resource intensive sectors and higher value-added industries.
Source: Investment Promotion Department, MPI
Source: Indonesia – Investment Coordinating Board (BKPM) Statistics, Laos- Investment promotion department, Ministry of planning and investment, Myanmar – Directorate of Investment and Company, Thailand – Bank of Thailand, Vietnam – General Statistics Office of Vietnam
Strengthening Reforms in Governance and Transparency
To create a pro-business environment, Lao PDR has taken a whole-of-government, multi-sectoral approach to introduce strong policies with clearly defined provisions and institutionalised mechanisms that are aligned throughout ministries and local governments.
Some of the key efforts carried out to liberalise the economy and open up the private sector include:
Accelerating Growth via Special Economic Zones
Lao PDR has established 12 Special Economic Zones (SEZs) to create new opportunities and drive stronger growth. We aim to have 25 SEZs throughout the country by 2020.
Key roles of the SEZs:
Since the introduction of the first SEZ in 2003, the SEZs have brought in actual investments of up to US$1.83 billion, contributed US$20,327,060 in government revenue and increased the value of exports by US$815,491,201. Accumulated investments in Lao PDR’s SEZs increased by 30% from US$1.2 billion in 2015 to US$1.8 billion in 2017.
As at 31 December 2018, there were almost 400 foreign and domestic companies registered in the service sector, industry and trade. More than half are from China (181 businesses), Thailand (28) and Japan (30), representing companies like Aeroworks, Essilor, Nikon, Toyota, and Mascot among others.
Improving Efficiency via One-Stop-Service (OSS) Centres
The government has set up One-Stop-Service (OSS) centres within SEZs to provide investors access to comprehensive support and centralised information on investing in Lao PDR. For instance, the Savan Seno OSS Centre which benefits from the Prime Minister’s Decree 177 has set the standard in providing on-site approvals for permits, licenses as well as facilitates other investment procedures.
Key service offerings at OSS Centres:
Leveraging on Distinct Advantages
Lao PDR’s engine of growth has been powered by its vast reserve of natural resources, namely agriculture, forestry, minerals (gold, copper, zinc and lead), electricity generated from hydropower and tourism.
Sector |
Details |
Hydropower |
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Agriculture |
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Manufacturing |
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Tourism |
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Shaping inclusive and sustainable growth
Driving Sustainable Practices
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Laos at a Glance
Name |
Lao People's Democratic Republic (Lao PDR) |
GDP |
152,425 billion Kips (2018) |
GDP Growth |
7.9% per annum on average, (2012=7.93% and 2013=7.6%, 2018=6.5% |
GDP per Capita |
US$ 573 in 2005-2006 up to US$ 1,069 in 2009-2010 and 2,599 US$ in 2018 |
Population |
6.6 Million (2008), 6.901 Million (2017) |
Density |
25 people per sq km |
Land Boundaries |
5,083 km |
Borders |
Myanmar 235 km, Cambodia 541 km, China 423km, Thailand 1,754 km, Vietnam 2,130 km |
Languages |
Lao (official), French, English, Various ethnic languages |
Surface Area |
Total: 236,800 sq km, Land: 230,800 sq km, Water: 6,000 sq km |
Climate |
Tropical monsoon, Rainy season (May to October), Dry season (October to April) |
Religion |
Buddhists (65%), Animist (32.9%), Christians (1.3%), Unspecified 0.8% (1995 census) |
Time Zone |
UTC+7 |
Currency |
Kip (LAK) |
Exchange Rates |
Stable exchange rate average 1 Dollar: 8,700 Kips (2019) |
Copyright © 2014 Investment Promotion Department, Vientiane Capital, Laos PDR