Lao PDR is busy positioning itself as a regional hub, building a commercial reality based on what is its natural geographical advantage at the very heart of South East Asia. It became a member of the ASEAN group of countries in 1997 and has also applied to join the World Trade Organisation (WTO). Lao PDR has made a name for itself around the world as both a location as a cost-effective manufacturer of garments and of high-end woven fabrics. Its strategic position in one of the fastest emerging areas in Asia is almost certain to benefit its long term economic development. The potential for growth is particularly strong in certain areas such as power generation and mining.
There are also several significant upcoming commercial projects in the hydroelectricity and mining sectors that offer opportunities to businessmen.The establishment of the Savan-Seno Special Economic Zone in Savannakhet Province along the East-West Corridor promises to become an attraction for investors. Opportunities for businessmen exist in the education, health, energy, agriculture and infrastructure development sectors, ranging from advisory consultancies to tenders for supply of equipment.
Key economic indicators and statistics for 2008:
■ GDP US$5.2 billion
■ GPD per capital US$829
■ Real GDP growth 7.5 percent
■ Inflation 7.3 percent
(Source: Australian Government Department of Foreign Affairs and Trade - Country economic fact sheet)
Area: 236,800 sq. km
Population (2009 est.): 6.8 million.
Natural resources: Hydroelectric power, timber, and minerals.
Agriculture (39.2% of GDP, 2008 est.): Primary products--glutinous rice, coffee, corn, sugarcane, vegetables, tobacco, ginger, water buffalo, pigs, cattle, poultry, sweet potatoes, cotton, tea, and peanuts.
Industry (34.3% of GDP, 2008 est.): Primary types--copper, tin, gold, and gypsum mining; timber, electric power, agricultural processing, construction, garments, cement, tourism. Industrial growth rate (2008 est.): 11%.
Services (2008 est.): 26.6% of GDP.