Investing in LAOS

Lao PDR| Key Elements

  • Country profile
    • LDC Country profile
    • Superficy : 236 800 km²
    • Population : 6,5 M habitants (2015)
    • Currency : Kip (1 € = 9 091 LAK et 1 $ = 8 182 LAK)
      exchange rate: 16/07/2016
    • GDP : 12,374 Mds USD
    • Per capita income : 1 730 USD
      (lower middle income country)

  • Gradual opening to the international economy
    • 1975 establishment of a single-party system (PPRL) with Politburo

Lao PDR | Macro-economic situation

  • Lao PDR is rapidly catching up with an average annual growth of 7% of GDP par an

  • Agriculture employs 70% of the population

  • Expansion of the industry, especially hydrolectricity

  • Services are a particularly dynamic sector

Sources: Lao Statistics Bureau; Asian Development Outlook and World Bank databases..

Lao PDR | Government’s budget

  • Lao PDR | Government’s budget

Source: Asian Development Outlook database.

  • Fiscal deficit: 3,7% of GDP

  • Public debt: 65% of GDP

Lao PDR | Exchange rate, Finances & Inflation

  • Stability of the kip/dollar exchange rate

Source: Bank of Laos.

  • Lower Inflation (2012 - 2016)

Source: CEIC Data Company (accessed 16 March 2016).

  • External weaknesses (2,2 months of reserves)

  • Improvement in anti-money laundering policies

Lao PDR | International Trade

  • Trade shares in (2014-2015)

Source : Department of imports/exports, Ministry of Industry and Commerce (MoIC)

Lao PDR | International Trade

Source: Trademap

Lao PDR | Growth Sectors

  • Hydroelectricity

  • Urban Developement

Rapid Urbanisation

Vientiane 750 000 inhabitants on 3920 km²

Luang Prabang

  • Services
    Tourism is rapidly expanding : +13 % in 2015 (6% of PIB)

Lao PDR | Special Economic Zones

  • 3 Special Economic Zones and 8 Specific Economic Zones
    • Fiscal exemptions and incentives
    • Facilitation of exports to neighboring countries
      (Vietnam and Thailand)

  • Caracteristics of firms already present
    • 200 commercial licences
    • 11 000 employees, of which 60% are foreign


Source: The Secretariat office to the National Committee for Special Economic Zones (SNCSEZ))

ASEAN | Key Elements

  • 10 countries
    Brunei, Cambodia, Indonesia, RDP Lao, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam

  • 3rd most populated area
    630 millions (2015 )

  • 7th economy
    2 500 Mds USD (2015 cumulated GDP)

ASEAN | The world’s most dynamic region


Source: Asian Development Bank (online publication)

ASEAN | Economic Community

 

  • Since January 1st 2016

    • Elimination of 99% of intra-ASEAN tariff barriers

    • Open sky

Objective : annual growth of 7 %