This presentation is on Laos and aim is to let you know whether you should or shouldn't invest in Laos. This presentation includes the political, economical and social overview of Laos. A few slides are expressed through images.

1. CHAN XIANGYUAN
DARSHINA DHARMANI

2. OUTLINE
TO INVEST OR NOT TO?
OVERVIEW OF LAOS
MARKET OVERVIEW
POLITICAL OVERVIEW
BUSINESS ENVIRONMENT
BUSINESS OBSTACLES

3. SHOULD WE
INVEST IN
LAOS?

5. OVERVIEW
CAPITAL : VIENTIANE
POPULATION : 6.8 MILLION
OFFICIAL LANGUAGE : LAO
RELIGION : BUDDHISM
IMPORTS : $27,863 M
EXPORTS : $36,560 M
CURRENCY : LAO KIP (1$= 100 ₭N)
GDP (2014) : $11.1 BILLION
GDP GROWTH : 8.1 %

6. MARKET OVERVIEW
• COMMUNIST COUNTRY
- Market based economic principles
- High degree of governmental control
- Politically stable
• FISCAL & MONETARY CRISIS IN 2013 (-$2.9 BIL)
• 10-YEAR AVERAGE GDP GROWTH RATE (8.1%)
• WORLD TRADE ORGANIZATION MEMBER (2013)
• ASEAN ECONOMIC COMMUNITY PARTICIPANT

7. POLITICS
• LAO PEOPLE’S DEMOCRATIC REPUBLIC – 1975
•LAOS REVOLUTIONARY PEOPLE’S PARTY
• CENTRALLY PLANNED ECONOMY -> MARKET ORIENTED SYSTEM
•ASEAN (CHAIR IN 2016)
• STRONG TIES WITH CHINA, VIETNAM & THAILAND
• 63 YEARS OF DIPLOMATIC RELATIONS WITH AUSTRALIA (2015)

8. THE BUSINESS ENVIRONMENT
Source: European Chamber of Commerce and Industry in Lao PDR

9. OBSTACLES FOR THE BUSINESS
Source: World Bank 2013

10. SWOT ANALYSIS
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
 POLITICAL STABILITY
 HIGH ECONOMIC
GROWTH
 RELIABLE ENERGY
SUPPLY
 LOW WAGES
 BUSINESS FRIENDLY
LAWS
 DECENT LIVING
CONDITIONS FOR
EXPATS
 SMALL DOMESTIC
MARKET
 MODERATE LEVEL OF
VOCATIONAL &
TECHNICAL SKILLS
 POOR INFRASTRUCTURE
(HIGH TRANSPORTATION
COSTS)
 WEAK BANKING &
FINANCIAL SYSTEM
 RICH IN NATURAL
RESOURCES
 GROWING TOURISM
 LITTLE COMPETITION
 HIGH LEVEL
BUREAUCRACY AND
CLOUDY
ADMINISTRATION
 CORRUPTION
 RISING COST OF RAW
MATERIALS
 RISE IN TAXATION

11. INDUSTRIES
TO INVEST IN
TOURISM
INFRASTRUCTURE
AGRICULTURE
MINING

12. CULTURE
DRESSING AND APPEARANCES
GREETINGS
SOCIAL OUTINGS
PUNCTUALITY
OVERSEAS EDUCATION FOR MANAGERIAL
POSITIONS

13. TABOOS
DREADLOCKS, TATTOOS & PIERCINGS
DISPLAY OF AFFECTION
PHYSICAL CONTACT (HEAD & FEET)
MONKS
BARE SHOULDERS & THIGHS

14. COMMUNICATION STYLES
•Non-confrontational and indirect.
•Offer you the response they assume you want to hear.
•Conflict is often resolved through an intermediary.
•Focus on non-verbal cues such as facial expressions and body language.
•Often says yes to a direct question, but meaning that they hear & understand
you.

15. BUSINESS TIPS!
•Never place your feet on a desk
•Business cards in English & Lao
•Addressed by first name, followed by Mr/Madame (Than)
•Social engagements to build trusts
•Face-to-face contact

16. CONCLUSION
GOOD TO INVEST IN
AGRICULTURE, MINING &
TOURISM
6/10
 POLITICALLY STABLE
 GROWING ECONOMY
 EASY GOING COMMUNITY
 BUSINESS FRIENDLY LAWS
 LOW LABOR COSTS

17. REFERENCES
• http://factsanddetails.com/southeast-asia/Laos/sub5_3b/entry-2952.html
• http://guide.culturecrossing.net/basics_business_student_details.php?Id=23&CID=113
• http://www.seasite.niu.edu/lao/undp/understandingCulture.htm
• http://www.roughguides.com/destinations/asia/laos/culture-etiquette/
• http://thailand.ahk.de/uploads/media/Presentation_of_ECCIL_about_Laos.pdf
• http://www.laotradeportal.gov.la/kcfinder/upload/files/Guide%20for%20China.pdf
• http://www.doingbusiness.org/data/exploreeconomies/lao-pdr/
• http://www.austrade.gov.au/Export/Export-Markets/Countries/Laos/Market-profile#.VVS-g_mqqkr
• http://www.lxs.com.la/files/Lao%20Investment%20Guide/Lao%20Investment%20Guide%20%5BEnglish
-Version%5D%20-%20October%202013.pdf
• http://dfat.gov.au/geo/laos/Pages/laos-country-brief.aspx