Lao PDR has a lot of natural resource. Agriculture and hydropower production are the main sources of income. The government is focused on structural reforms, with dual strategies of liberalizing the business environment and improving the skills of young workers.
Lao- China railway is an opportunity for more sustainable transport in ASEAN. The railway line would link ASEAN’s railway network with the wider railway corridors along the Trans-Asian Railway Network, opening new prospects for international railway transport for these countries.
The minerals and mining sector has been a major driver of growth in Laos, particularly copper and gold.
Key FDI’s Sectors in 2022
- Mining
- Agriculture
Laos is a member of the Asia-Pacific Trade Agreement, the ASEAN, East Asia Summit, and La Francophonie. Laos applied for membership of the World Trade Organization in 1997 it was granted full membership. It is a one-party socialist republic, espousing Marxism–Leninism and governed by the Lao People’s Revolutionary Party.
The Lao power sector is open to foreign investment, with representation from international firms. Hydropower and transmission and distribution infrastructure will be the focus of increasing investment by the Lao government as it develops its power industry, with opportunities present for developing solar power.
2022 LAO PDR IN BRIEF
Total population = 7.5 million
GDP = USD 15.7 billion
GDP per Capita = USD 2,599
GDP Growth = 2.7%
Trade Balance = USD -0.1 billion
Minimum Wage = 40,000 LAK/day
Top 10 Export
Total Value = USD 7.16 billion
COUNTRY/REGION
1. Thailand (32.0%)
2. China (31.0%)
3. Vietnam (17.4%)
4. Australia ( 4.9%)
5. Cambodia (1.8%)
6. Switzerland ( 1.6% )
7. Singapore ( 1.3%)
8. Hong Kong (1.2%)
9. Japan (1.2%)
10. Germany (1.1%)
PRODUCT
1. Electrical energy (22.0%)
2. Gold (13.4%)
3. Uncoated paper and paperboard (7.3%)
4. Copper ores and concentrates (4.6%)
5. Artichokes, sweet potatoes (4.0%)
6. Natural rubber (3.9%)
7. Chemical wood pulp (3.8%)
8. Iron ores (3.4%)
9. Bananas, fresh or dried (3.3%)
10. Live bovine animals (3.1%)
Top 10 Import
Total Value = USD 5.87 billion
COUNTRY/REGION
1. Thailand (46.0%)
2. China (22.0%)
3. Vietnam (7.9%)
4. USA (4.5%)
5. Switzerland (4.5% )
6. Japan (3.0%)
7. Australia (1.7%)
8. Singapore (1.1%)
9. Korea (1.1%)
10. India (0.7%)
PRODUCT
1. Petroleum oils and oils from bituminous minerals (11.1%)
2. Gold (4.6%)
3. Waters, including mineral waters and aerated waters (3.9%)
4. Recovered (waste and scrap) paper or paperboard (3.7%)
5. Live bovine animals (3.6%)
6. Motor vehicles for the transport of goods (3.3%)
7. Motor cars and other motor vehicles for the transport of persons (3.0%)
8. Insulated electric conductors (2.5%)
9. Transmission apparatus (1.8%)
10. Tractors (1.4%)