Investing In Laos? Things you need to know
Laos also officially known as the Lao People’s Democratic Republic (Lao PDR) is a landlocked Southeast Asian country previously a French Colony. The Country is a Unitary Marxist–Leninist one-party socialist republic. The Lao PDR is one of the fastest-growing economies in Asia with 6% growth YOY. Laos is seeing a positive growth trajectory in sustained economic growth, human assets development and protection of its natural resources. A diverse and growing private sector is ready to exploit the opportunity of regional integration and trade openness.
The country follows a liberal economy and it opened to the private sector after its amendment of the Investment Promotion Law (IPL) of 2017.
Economy
The country has a Stable Political environment, rich natural resources, clean energy and young working resources making it an ideal country for investment. The country is famous for manufacturing companies for their Global Value Chains, Renewable Energy, Tourism and Abundant of Natural Resources. The country exports Electronic parts, garments, Hydropower, Tourism, coffee.
Due to its strategic location in South-East Asia, It becomes the right hub for transport and logistics due to its position in the Mekong region. In 2015 when the ASEAN economic community (AEC) was formed, the Lao PDR harnessed the benefits to connect to its neighbouring economies and regional value chains. It is now considered as the Gateway to ASEAN market with 625 million consumers and purchasing power for 2.6 Trillion USD. AEC forms the third-largest economy of Asia and Seventh in the world.
Laos is a paradise for tourists. Investment opportunities in tourism are abundant. Laos is a country full of untapped opportunities, a place to grow businesses. The country has lush landscapes, rich culture, a million elephants and the mighty Mekong River that flows from the north to south of Laos. Tourism has not only led to the introduction of new infrastructure projects, including hotels, transportation services, roads as well as the expansion of the Vientiane International Airport but has also been a catalyst for employment and business opportunities for locals.
Though the country still depends on agriculture is also rich in Mineral resources and Mining. While Metallurgy is an important industry with substantial deposits of coal, gold, bauxite, tin, copper, and other valuable metals, the mining industry also has prominent attention due to deposits of gold, copper, zinc, lead and other minerals.
Futuristic Governance
Laos is one of the most stable countries in the region. It imbibes good governance while making positive decisions in policymaking. The country is focussed on creating a pro-business environment to get out of its underdeveloped status. In this regards, the government has taken multiple initiatives such as better tax administrations, Modernising with Technology, robust monitoring system, and changing the laws. It has also strengthened the legislative and regulatory policies
It has also revamped the Education system with a better and futuristic view. The government believes it is important to invest in the resources and hence created future-oriented education programmes that will ensure the young population are equipped with skill sets that are required for economic growth. The government is mulling on various education programmes to deliver better education outcomes, build skilled talents and increase organizational capacity building measures to build their young population become self-sufficient. Initiatives are taken to ensure the talent meets the industry demands. Technology is being adapted at all levels including education to ensure a better result and outcome of a person.
The government is also strongly committed to Sustainable development of the country. For this, it has localised sustainability development and ensured the necessary usage of natural resources for the same. The government has initiated policies towards protecting forests & ecosystems, manage water resources and preserve biodiversity. The country has put in a strategy for clean and green growth and to ensure a better environment for future generations.
Laos’s government has recognized that the SME’s are the backbone of the country and their role in the economic development, employment and income generation is prominent. Hence it has begun efforts to support the growth of SMEs which includes a better framework and support to improve promotions of SMEs.
Ease of Doing Business in Laos
To facilitate Ease of Doing business, Laos has setup One-Stop-Service (OSS) Centres. It provides investors access to comprehensive support and centralised information on investing in the Lao PDR. The centres are managed by a knowledgeable workforce trained to communicate the country’s investment opportunities, address queries and troubleshoot challenges, and provide seamless end-to-end service delivery to facilitate incoming investment from local and foreign investors alike.
Special Economic Zones (SEZs) are created to drive economic growth. These clusters drive innovation and increase consumption not only in Laos but also across the world. They offer lower production costs and better skill labour. They also offer collaborative development between companies both locally and internationally and raise opportunities. Partnerships, Collaborations, Ideas and Innovations among businesses have increased investments substantially that has spread its wings globally. Special incentives are provided to created robust infrastructure to support export-oriented operations.
Some Investment Portfolios/Opportunities in Laos
- Mineral Processing Plant
- Livestock Farming
- Fisheries farming
- Bamboo Manufacturing
- Ang Nam Hin Special Economic Development Project
- Kat Village Industrial Park
- Private Kindergarten
- Cardamom Cultivation Project
- Water Supply Project in Sop Bao District
- Sam Tai Silk Production Business
- Houaphanh Ethnic Culture Park
- Nam Sui Reservoir Development Project
- Comprehensive Lotus Nut Manufacturing Project
- Ta Oi Market Development Project
- Cassava Dehydration Business
- Eco-Hotel Development Project
- Comprehensive Tire Manufacturing Project
- Toum Lan Municipality Market
- Tire Manufacturing Project in Khongxedon
- Eco-Tourist Development Project on Saravan-Ubolrajathani Border
- Vientiane Province Industrial Park Development
- Sanakham Border Checkpoint Trade Center
- Organic Vegetable Farm
- Nam Lik Dam 1-2 Tourism Development Project
- Industrial Rice Farming in Thoulakhom
- Muang Meun Water Supply Project
