LAOS

The 6th Lao Five Year Plan spells out the economic and social targets for 2006-2010, including GDP growth of 7.5% to 8%. This is considered to be achieved only by dynamic private sector development and corresponding investment and the development of small and medium-sized enterprises (SMEs) in the country.  Under the national socio-economic development plan and the strategy for social economic growth, the government is targeting to lift the country out of its LDC status by 2020.   Its biggest asset in the process are rich natural resources including iron ore, gold, copper, zinc, forestry and hydropower.

Location

Southeastern Asia, Northeast of Thailand, West of Vietnam.  - Landlocked; most of the country is mountainous and thickly forested; the Mekong River forms a large part of the Western boundary with Thailand

Climate

Tropical monsoon, rainy season (May to November), dry season (December to April)

Natural Resources

Timber, Hydropower, gypsum, tin, gold, gem stones

Population

6,834,942 (July 2009 est.)

Ethnic Groups

Lao 55%, Khmou 11%, Hmong 8%, Others (over 100 minor ethnic groups) 26% (2005 census)

Religions

Buddhist 67%, Christians 1.5%, Others and unspecified 31.5% (2005 census)

Languages

Lao (official), French, English and various ethnic languages

National Holiday

2^nd December

Currency

Kip (LAK)

Fiscal Year

1^st October to 30^th September

Agriculture products: Sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle and poultry.

Industries: Copper, tin, gold, and gypsum mining; timber, electric power, agricultural processing, construction, garments, cement & tourism.

Government figures reflected growth of 7.6 percent in the fiscal year 2008.  The economy has until recently benefited from high foreign investment in hydropower, mining, and construction. The financial crisis of late 2008, and the rapid drop in commodity prices - especially copper - has slowed these investments.   

The economy has until recently benefited from high foreign investment in hydropower, mining, and construction. Several policy changes since 2004 may help spur growth.  Laos, which gained Normal Trade Relations status with the US in 2004, is taking steps to join the World Trade Organization.  Related trade policy reforms will improve the business environment. A value-added tax (VAT) regime, which began with a few large businesses in early 2009, should slowly help streamline the government's inefficient tax system.  Preparations for the construction of the largest 1,800 MW electricity power plant in Laos began in 2007 and the construction will be under way soon.  A project of this scale will yield high revenue while providing Lao people with jobs and income.