2. 2
Overview
• Market size and structure
• Market Sectors
▫ Mining & Mining Services
▫ Construction & Property
▫ Tourism
▫ Agri-business
• Doing business in Laos
• Austcham Laos
3. 3
The Lao economy has been the fastest growing economy in Asia over the past
decade and is closing the per capita income gap with its neighbours
0
200
400
600
800
1000
1200
Per Capita GDP
Lao PDR Vietnam Cambodia
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Laos Growth % GDP
Source: Austcham and World Bank
4. 4
A graphical depiction of the Lao economy shows how heavily dependent the
economy is on natural resource industries
Source::: Lao PDR Export Treemap from MIT Harvard Economic Complexity Observatory
5. 5
With 250+ mineral concessions supply opportunities exist for mining services.
Mining is the largest export sector by sales constituting 36% of exports
8%
20%
36%
20%
14%
2%
Composition Exports 2013
All food
Agriculture
Minerals
Electricity
Manufactures
Other
Source: Austcham and UNCTAD Database
Source: Austcham and Dept Geology MoNRE
6. 6
The property, real estate and construction sectors are booming, largely with
Chinese investment in property and Thai investment in hydropower
Vientiane New World Development That Luang Marsh Re-Development
Don Sahong and Xayaburi dams High Speed Train Project
7. 7
17% CAGR of tourist arrivals has seen the tourism emerge as a dominant
sector of the Lao market. Visits are often connected to trips to Thailand
0
1
2
3
4
5
6
MillionArrivals
Growing Interest from
International hotel chains
Source: Austcham and Lao Tourism Association
8. 8
Agribusiness is one of the top development sectors for Laos. Thailand is
aggressively pursuing expansion into the growing agricultural sector of Laos
0 500 1000 1500
Germany
Japan
India
China
Thailand
Top Trade Partners
Source: Austcham and UNCTAD Database
$0
$20
$40
$60
$80
$100
$120
$140
Millions
Agricultural Exports
by Value
Source: Austcham and UNCTAD 2013 data
9. 9
Laos scores relatively poorly in the World Bank’s Ease of Doing
Business survey at 178 in 2015 (up 7 places)
Starting a business
Dealing with
construction permits
Getting electricity
Registering property
Getting credit
Protecting investors
Paying taxes
Trading across borders
Enforcing contracts
Resolving insolvency
Laos
Source: Austcham and World Bank Ease of Doing Business
