Doing Business in Laos

The objectives of the subject “International Trade and Business in the Lao People's Democratic Republic” are the following:

1. To analyze the Laotian Economy and Global Trade;
2. To know the business opportunities in the Lao People's Democratic Republic;
3. To explore the Laotian trade relations with the country of the student;
4. To know the Laotian Trade Agreements;
5. To examine the profile of Laotian Companies;
6. To develop a business plan for the Laotian Market.

The Subject “Foreign Trade and Business in Laos” belongs to the following Online Higher Educational Programs taught by EENI Global Business School:

Doctorate (DIB): Asian Business, World Trade.

Masters (MIB): International Business, Foreign Trade.

Learning materials in or Laos Laos.

1. Credits of the subject “Foreign Trade and Business in Laos”: 1 ;
2. Duration: one week.

1. East-West Economic Corridor (Myanmar-Thailand-Laos-Vietnam);
2. Nanning-Singapore Economic Corridor
   1. Pan-Beibu Gulf Economic Zone.

Laotian Market access and Free Trade Agreements:

1. Laos and the Buddhist Economic Area;
2. Association of Southeast Asian Nations (ASEAN)
   1. ASEAN Free-Trade Area (AFTA);
   2. ASEAN Economic Community;
   3. Laos has Free Trade Agreements (as a member of the ASEAN) with China, India, European Union, Japan, Korea, Russia, and the United States;
   4. ASEAN (Cambodia)-Australia-New Zealand (Free-Trade Area);
   5. Mekong Economic Cooperation Strategy (ACMECS);
   6. Mekong River Commission (MRC).
3. Asia-Pacific Trade Agreement (APTA);
4. Regional Comprehensive Economic Association (RCEP);
5. Greater Mekong Subregion (GMS);
6. Laos-Vietnam Trade Agreement;
7. Laos-Thailand Preferential Trading Arrangement;
8. Generalized System of Preferences (GSP).

1. World Trade Organization (WTO)
   1. WTO General Agreement on Trade in Services (GATS);
   2. WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS);
   3. WTO Agreement on Technical Barriers to Trade (TBT);
   4. WTO Agreement on Preshipment Inspection (PSI);
   5. WTO Agreement on Safeguards (SG);
   6. WTO Trade Facilitation Agreement (TFA).
2. International Convention on the Harmonization of Frontier Controls of Goods (UNECE);
3. Is not a member of the
   1. International Bureau of Containers and Intermodal Transport (BIC);
   2. International Civil Aviation Organization (ICAO, Chicago Convention);
   3. International Maritime Organization (IMO);
   4. World Customs Organization (WCO)
      1. Revised Kyoto Convention (RKC).

Asian Trade and Economic Organizations:

1. Economic and Social Commission for Asia and the Pacific (ESCAP);
2. Asian Development Bank (ADB);
3. Boao Forum for Asia;
4. Asia-Middle East Dialogue (AMED);
5. Africa-Asia (Laos) Strategic Partnership;
6. Asia Cooperation Dialogue (ACD);
7. Laos-Europe Economic Meeting;
8. Forum Laos-Latin America;
9. Colombo Plan.

Global Organizations:

1. United Nations (UN)
   1. Conference on Trade and Development (UNCTAD);
   2. International Trade Centre (INTRACEN);
   3. World Intellectual Property Organization (WIPO).
2. World Bank (WB);
3. World Trade Organization (WTO);
4. International Monetary Fund (IMF).

Lao People's Democratic Republic

1. The only legal political party is the Lao People's Revolutionary Party (LPRP);
2. The Lao People's Democratic Republic has a population of 6.8 million;
3. 50% of the people of Laos are ethnic Lao;
4. Laotian languages: Lao (official), English, French, and various ethnic languages;
5. The Laotian Government introduced English at the primary school level in 2010;
6. Borders of Laos: Vietnam, Thailand, Cambodia, China, and Myanmar;
7. Capital of Laos: Vientiane;
8. Type of Government: Marxist-Leninist one-party state;
9. Independence of Laos: 1949 (France);
10. Laotian Area: 236,800 square kilometers.

Main religion of Laos: 67% of Laotians are Theravada Buddhist (4 million).

Laos belongs to the Buddhist Civilization.

Economy of Laos.

1. Economy of the Lao People's Democratic Republic (Asia) is fundamentally a free market system with active central planning by the Government (similar to the Chinese and Vietnamese models);
2. Laotian agriculture, mainly rice farming, dominates the economy of Laos, employing 75% of the population and producing 29% of the gross domestic product;
3. Donor-funded programs accounted for 8.5% of the Laotian gross domestic product;
4. China is becoming a major player in Laos;
5. The Chinese foreign direct investment (FDI) in the Lao People's Democratic Republic is increasing at a fast rate;
6. Despite the global financial crisis, the economy of the Lao People's Democratic Republic has performed moderately well;
7. The Laotian gross domestic product has reported steady growth at above 7%, and it is projected to continue growing continuously in the coming years;
8. The Investment promotion Department, operating under the Ministry of Planning and Investment, formerly known as the Department for Promotion and Management of local and foreign investment, manages foreign direct investment system and reviews investment applications in Agreement to the Investment Promotion Law;
9. The Laotian National Chamber of Commerce and Industry established in 1989 is an independent body that represents the business community in Laos;
10. Currency of Laos: Kip (LAK).

Lao Brewery Co., Ltd. was created in 1973 as a joint-venture between foreign investors and Laotian Businessman initially under the registered name of Lao Beer and Ice Factory. At that time, the company had an annual production capacity of 3 million liters of beer, 1.5 million liters of carbonated drinks and a daily production capacity of 120 tones of ice.

The Xaoban Group produces and supplies home-made yogurt, fruit juice, honey, fruit jam, tomato sauce, pre-packed salad, and salad dressing and other natural seasonal products to customers in Vientiane and other urban areas in Laos.

International Trade  of the Lao People's Democratic Republic:

1. Laotian Exports: 1.950 billion dollars;
2. Top Laotian exports products: gold and copper, electricity, wood and wood products, garments, coffee, other agricultural export products, rattan, and tin;
3. Top Laotian export markets: Thailand, Vietnam, the People's Republic of China, Switzerland, the United Kingdom, and Germany;
4. Laotian Imports: 2.258 billion dollars;
5. The largest Laotian imports are fuel, food, consumer products, machinery and equipment, vehicles, and spare parts;
6. Top Laotian import partners: Thailand, Vietnam, China, South Korea, and Belgium;
7. China is now the largest source of Foreign direct investment (FDI) in Laos.

Savan-Seno Special Economic Zone.

1. The Savannakhe Province in Laos is a thriving hub of international trade and services in the Greater Mekong Sub-region;
2. Total exports in Savannakhet was USD 238 million, of which 92% (USD 218 million) was transit products.

Laos was admitted into the Association of Southeast Asian Nations ASEAN on July 1997 and applied to join the World Trade Organization in 1998. Laos keeps a “special relationship” with Vietnam and formalized a 1977 treaty of friendship and cooperation that created tensions with China.

Lao is a member of Food and Agriculture Organization, G-77, International Bank for Reconstruction and Development (World Bank), International Development Association, International Finance Corporation, International Monetary Fund (IMF), United Nations (UN), United Nations Convention on Trade and Development, United Nations Educational, Social and Cultural Organization, United Nations Industrial Development Organization, World Customs Organization (WCO), World Intellectual Property Organization (WIPO) and the World Trade Organization (observer).

(c) EENI Global Business School (1995-2023)
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