Doing Business in Laos

EENI - Business School.

Subject (Course): International Trade and Business in Laos - Vientiane. Syllabus:

  1. Introduction to the Lao People's Democratic Republic (South-east Asia ASEAN).
  2. Laotian Economy
  3. Doing Business in Vientiane
  4. International Trade of Laos.
  5. Business Opportunities in Lao PDR:
    - Manufacturing
    - Textiles
    - Tourism
    - Agribusiness
    - Services.
  6. Foreign Direct Investment (FDI) in Laos.
  7. Savan-Seno Special Economic Zone.
  8. Case Study:
    - Lao Brewery Company.
    - Xaoban Group.
  9. Access to the Laotian Market
  10. Business Plan for Laos

Objectives of the subject “Doing Business in the Lao People's Democratic Republic”:

  1. To analyse the Laotian economy and foreign trade
  2. To evaluate business opportunities in the Lao People's Democratic Republic
  3. To explore Laos' trade relations with the student's country
  4. To know Laos' Free Trade Agreements (FTAs)
  5. To examine the profile of Laotian Companies
  6. To develop a business plan for the Laotian Market
Subject “Doing Business in Laos” is studied…
  1. Doctorate DIB Asia
  2. Diploma Business in the ASEAN countries
  3. Masters: International Business (MIB), Asia

Master in International Business Laotian students

Course learning materials in En or Es Laos Fr Laos

  1. Credits of the subject “Doing Business in Laos”: 1 ECTS/0.5 AC Credits
  2. Duration: one week

Sample of the subject - Doing Business in Laos:
Laos companies


Subject Description (Doing Business in Laos).

The Lao People's Democratic Republic: a free market system with active central planning by the Government

  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 people of Laos are ethnic Lao.
  4. Laotian languages: Lao (official), English, French, and various ethnic languages.
  5. The Government introduced English at the primary school level in 2010.
  6. Borders of Laos (the Lao People's Democratic Republic): Vietnam, Thailand, Cambodia, the People's Republic of China, and Myanmar
  7. The capital of Laos: Vientiane
  8. The main religion of Laos: 67% of Laotians are Theravada Buddhist (4 million)
  9. Type of Government: Marxist-Leninist one-party state
  10. Independence of Laos: 1949 (France)
  11. Area: 236,800 square kilometres

Laos belongs to the Buddhist Civilisation.

The economy of Laos.

  1. The 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. Agriculture, mainly subsistence 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 gross domestic product.
  4. The People's Republic of China is becoming a major player in Laos.
  5. 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. Gross domestic product has reported steady growth at above 7%, and it is projected to continue growing continuously in the coming years.
  8. 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 the foreign direct investment system and reviews investment applications in Agreement to the Investment Promotion Law.
  9. Lao National Chamber of Commerce and Industry established in 1989 is an independent body that represents the business community in Laos.
  10. The currency of Laos: Kip (LAK)

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

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.

Foreign trade of the Lao People's Democratic Republic:

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

Savan-Seno Special Economic Zone.

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

Laos' Market access and Free Trade Agreements:

  1. Association of South-East Asian Nations (ASEAN)
  2. ASEAN Free Trade Area (AFTA)
  3. Mekong Economic Cooperation Strategy (ACMECS)
  4. Laos-Thailand Free Trade Agreement
  5. Laos-Vietnam Trade Agreement
  6. Generalised System of Preferences (GSP)
  7. ASEAN-Australia-New Zealand (Free Trade Area)
  8. Asia-Pacific Trade Agreement (APTA)

Laos is a member of:

  1. Greater Mekong Subregion (GMS)
  2. Mekong River Commission
  3. Economic Social Commission Asia-Pacific (ESCAP)
  4. Asian Development Bank
  5. Boao Forum for Asia

Laos Importing

Asia-Pacific Trade Agreement

Greater Mekong Subregion

ASEAN-Canada Agreement

ASEAN Free Trade

Mekong Economic Cooperation

Mekong River Commission

EENI Business School