EENI-Business School

Doing Business in Laos

Syllabus of the Subject: Doing Business in Laos - Vientiane.

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

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

  1. To analyse the Laotian economy and foreign trade
  2. To evaluate the business opportunities in the Lao People's Democratic Republic
  3. To explore Laos' trade relations with the country of the student
  4. To know Laos' Trade Agreements
  5. To examine the profile of Laotian Companies
  6. To develop a business plan for the Laotian Market
The Subject “Doing Business in Laos” is part of the following programs:
  1. Doctorate in Business in Asia
  2. Diploma: ASEAN Markets
  3. Masters (e-learning): International Business, Asia

Master and Doctorate in International Business for the Laotian Students

Course learning materials in English or Spanish Laos French Laos

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

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

Description of the Subject: 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. Capital of Laos: Vientiane
  8. Type of Government: Marxist-Leninist one-party state
  9. Independence of Laos: 1949 (France)
  10. Area: 236,800 square kilometres

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

Laos belongs to the Buddhist Civilisation.

Association of Southeast Asian Nations (ASEAN)

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. The 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. 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. 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 the foreign direct investment system and reviews the 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 Laotians 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 litres of beer, 1.5 million litres of carbonated drinks and a daily production capacity of 120 tonnes 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.

Foreign 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 export agricultural 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: 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 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:

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

  1. Association of Southeast 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. World Trade Organisation (WTO)
  7. Generalised System of Preferences (GSP)
  8. ASEAN-Australia-New Zealand (Free-Trade Area)
  9. Asia-Pacific Trade Agreement (APTA)

Lao is a member of Food and agriculture Organisation, 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 Organisation, United Nations Industrial Development Organisation, World Customs Organisation (WCO), World Intellectual Property Organisation and World Trade Organisation (observer).

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

Samples - Business in Laos

Laos Importing

Asia-Pacific Trade Agreement APTA

Greater Mekong Subregion

ASEAN-Canada Free Trade Agreement (FTA)

ASEAN Free-Trade Area

Mekong Economic Cooperation Strategy (ACMECS)

Mekong River Commission

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