Business & Trade
Market Overview
- Population: 6.0 million
- GDP: $4.5 billion
- GDP per capita: $874
- Total Imports (fob): $1.4 billion
- Total imports from U.S.: $18.3 million
- Total Exports to U.S.: $42.4 million
Thailand, Vietnam, and China dominate the Lao economy, with heavy participation in certain sectors by Korea, France, Japan, India, Malaysia, Singapore and Australia.
American companies play almost no role in Laos.
Market Challenges
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Customs procedures are often opaque, and duties levied often do not comport with listed tariffs.
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Commercial law and the commercial court system within Laos are developing slowly and are not transparent.
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Business disputes are rarely adjudicated in favor of the foreign investor.
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Human capacity in Laos is low and finding skilled workers a major challenge.
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Procedures for investment are cumbersome and approvals often do not occur within times stated within the rules.
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Laws and procedures are subject to change at short notice and without prior consultation with, or notification of, the private sector. A list of Lao laws translated into English can be found at: http://www.undplao.org/whatwedo/bgresource/gov_laolaws.php
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The World Bank’s “Doing Business” project provides a comparison of Laos with 180 other economies at: http://www.doingbusiness.org/ExploreEconomies/?economyid=107
Market Opportunities
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The power sector, especially hydropower and coal, is open to foreign investment, with many international firms represented.
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Laos has abundant mineral wealth, much of which remains unexploited although many foreign firms are active.
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Agribusiness, including plantation agriculture (rubber/coffee/timber/corn), has attracted foreign investment.
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The Lao government has targeted tourism, especially ecotourism, as a major area of future growth. Laos was rated the #1 “Place to go” by the New York Times in 2008.