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  1. 1. CONTENTI. Laos Fact SheetII.Logistics infrastructures reviewIII.Economy review
  2. 2. I. Laos Fast Fact1) Full name: Lao Peoples Democratic Republic2) Population: 6.3 million (UN, 2009)3) Capital: Vientiane4) Area: 236,800 sq km (91,400 sq miles)5) Major languages: Lao, French (for diplomatic purposes)6) Major religion: Buddhism7) Life expectancy: 63 years (men), 66 years (women) (UN)8) Monetary unit: 1 new kip = 100 ath9) Main exports: Clothing, timber products, coffee, gold, copper, electricity10) GNI per capita: US $740 (World Bank, 2008)11) Internet domain: .la12) International dialing code: +85613) Administrative Division: Three regions, 18 provinces, 1 capital city, 1 special zone and 142 districts
  3. 3. New Year 1-Jan Lao Public holidaysArmy National Day 20-JanMakhabusa Day 8-FebWomen International Day 8-MarLao Popular Revolutionary Party 22-MarDayLao Buddhist New Year 13-16-AprLabor International Day 1-MayVisakhabusa Day 7-MayChild International Day 1-JunKhao Phansa Day 5-JulConstitution Day 15-AugKhao Padab Din Day 18-AugPower Seizing Day 23-AugKhao Salak Day 2-SepOak Phansa Day 2-OctBoat Racing Festival Day 3-OctTeacher National Day 7-OctThat Luang Festival Day 31-OctNational Day 2-Dec
  4. 4. Lao Provinces 1. Phongsali 10. Vientiane prefecture 2. Luang Namtha 11. Saysomboune(new) 3. Bokeo 12. Borikhamsay 4. Oudomxai 13. Khammouane 5. Luang Prabang 14. Savannakhet 6. Huaphan 15. Saravan 7. Xayabouri 16. Sekong 8. Xieng Khouang 17. Champasak 9. Vientiane province 18. Attapeu
  5. 5. Lao Provinces & Border Check-point
  6. 6. 1. Phongsali (northern-most provincial town)2. Muang Khua in Phongsali province, which can be reached by road or by Saung Ou river3. Botene - border check point to Yunnan province of China4. Muang Sing5. Luang Nam Tha6. Xieng Kok - a small town on the Mekong river across Myanmars Shan state7. Muang Xai (Udomxai province)8. Muang Ngoy in Luang Prabang province, which can be reached by road or by Saung Ou river9. Sam Neua (Hua Phan province)10. Houi Xai - border check point across Mekong river with Thailands Chiang Khong in Chiang Rai province11. Paktha - a village from where ones could go up in a boat on Nam Tha river to Luang Nam Tha12. Pak Beng - a small town on the Mekong, a stop over place for the slow boat to and from Luang Prabang13. Luang Prabang14. Xayabouri15. Phonsavan (provincial town of Xieng Khoung province)
  7. 7. 16. Namkan - border check point with Vietnam17. Vang Vieng18. Phonhong19. Vientiane20. Pakxan in Borikhamsay province - local Lao and Thai people can cross the river21. Lak Sao22. Nam Pao - border check point with Vietnam23. Naphao - border check point with Vietnam24. Tha Khaek (provincial town of Khammouane province) - border check point with Thailands Nakhon Panom across the Mekong25. Dansavanh border check point with Vietnams Lao Bao26. Savannakhet - border check point with Thailands Mukdahan across the Mekong27. Saravan28. Sekong29. Pakse (provincial town of Champasak)30. Vangtao border check point with Thailands Chong Mek in Ubonratchathani province31. Attapeu32. Vernkham - border check point with Cambodia
  8. 8. II. Logistics infrastructures review 1) Seaports Assessment 2) Airports Assessment 3) Roads Assessment 4) Railways Assessment 5) Inland Waterways Assessment 6) Customs formalities 7) Telecommunication Assessment 8) Case Studies
  9. 9. 1-SeaportsAssessment mountainous and landlocked country located in  Laos is a largelyupper Southeast Asia (no port within the country borders and centre ofGMS_Great Mekong Sub-region) The only Asian country with five borders, surrounded as it is byThailand, Myanmar, China, Vietnam and Cambodia with its borders:  Thailand to the west: 1,754km  Cambodia to the south : 541km  Vietnam to the East: 2,130km  China to the north: 423km  Burma to the north-west : 235 km Any international land transportation among other nations has to beconducted through Lao territory, and acknowledging the rapid economicgrowth of these countries, therefore, the future growth of the internationaltransportation industry is assured.
  10. 10. 2-AirportsAssessment than 8 airports including: Laos has more  Four international airports :  Luang Prabang International Airport  Wattay International Airport (Vientiane)  Pakse International Airport  Savannakhet International Airport  The others domestic airports in: Xiengkhuang, Savannakhet, Champasack, Bokeo, Oudomxay and Huaphanh. Airlines: Lao Airlines, Bangkok Airways,Thai Airways International,China Southern Airlines and Vietnam Airlines Vientiane is in practice the air travel centre of this country, serving tosupport most of the nation’s commercial air traffic and the developmentof the tourist industry.
  11. 11. 3-Road transportationAssessment Total road networks:32,624 Km  National roads: 7,160km  Provincial roads: 8,952 Km  Local roads: 16,512 Km Road No. 13 is backbone (1,230 Km) 8 routes has been designated as ASEAN Highway routes namely AH3 (NR3),AH13 (NR2), AH15 (NR8), AH120 (NR9), AH131(NR12),AH11&12 (NR13S&13N), AH132 (NR18A) and AH132 (NR18B) Laos is traversed by 5 Asian Highway routes namely AH11, AH12, AH13, AH15 and AH16. The five major roads in Laos are:
  12. 12. 1. Route 1, which starts from the China-Lao border and passes Luangnamtha, Oudomxay and Luangprabang before connecting with Route 6 in Huaphanh2. Route 7 starts from Route 13, linking Luangprabang and Xiengkhuang to the Lao-Vietnam border before terminating at the seaport of Vinh.3. Route 8 begins at Route 13 at Borikhamxay before passing through Khamkeut and entering Vietnam. The route also connects to roads within Vietnam between Vinh and Ha Tinh, both of which are important ports.4. Route 9 starts at the Khaengkabao fluvial port in Savannakhet before joining Route 13 to Vietnam at the Danang seaport. This route is regarded as the major highway linking Laos to the sea.5. Route 13 connects the south with the north of the country. It begins at the Cambodian border and passes through Champasack, Saravane, Savannakhet, khammuane, Borikhamxay, Vientiane and Luangprabang before crossing through the middle of the country into Oudomxay. Route 13 is regarded as the "trans-Asia highway" passing through Cambodia to the south of Vietnam as well as the starting point of several routes, for instance routes 7,8 and 9
  13. 13.  Road Transport is a dominant mode of Transport in Laos covering more than 90% of total freights. Total Transport Companies are 146 co. of which :  67 Passenger transport Companies  62 Freight transport Companies.  17 shipping companies.  UNESCAP, Bangkok, Thailand Oct 10, 2005 In Laos, containers are typically unloaded in neighboring country ports and moved by road or air to Vientiane. The main transportation routes to and from Vientiane are:  Vinh port of Vietnam (580 km)  Danang port of Vietnam (1,060 km)  Cambodia border (900 km)  Chinese Border (700 km)  Bangkok port of Thailand (650 km)
  14. 14. Laos transportation distance NORTHERN LAOSDestination City Province Distance (kms) Route No. Transit Time_day Houa Xay Bokeo 892 13-1-138-3 3 Xam Nua Houa Phan 611 13-7-6 3 Luang Namtha Luang Namtha 698 13-1-138 2 Luang Prabang Luang Praban 383 13 1 Oudomxay Oudomxay 579 13-1 2 Phonsali Phonsali 812 13-1-4 3 Xayaboury Xayaboury 444 13-1A 2 Phonsavan Xieng Khouang 374 13-7 1
  15. 15. Laos transportation distance CENTRAL LAOSDestination City Province Distance (kms) Route No. Transit Time KM52 Vientiane Province 52 13 Half Day Vang Vieng Vientiane Province 156 13 1 Xaysomboune Xaysomboun 212 13 1
  16. 16. Laos transportation distance SOUTHERN LAOSDestination City Province Distance (kms) Route No. Transit Time Paksane Bolikhamxay 143 13 Half Day Thakhek Khammouane 335 13 1 Savannakhet Savannakhet 455 13 1 Xeno Savannakhet 425 13 1 Pakse Champassak 649 13 2 Saravan Saravane 664 13-15 2 Attapeu Attapeu 854 13-23-16 2 Xekong Xekong 781 13-23-16 2
  17. 17. 4-Inland Waterway Assessment In the mountainous reaches of Laos, land transportation is almost impossible or uneconomic. In such places resorting to the nation’s waterway system has solved the problem. The total length of the inland waterways of the Laos is 4,600 km. The primary component of this system is the Mekong river, with 1,970 km or 40 per cent of its total length within the territory of the country. The Mekong River is navigable for much of its 1,800 kilometers length through Laos, linking the north and south of the country. The route can be divided into three parts: i. China border-Huoixai-Luangprabang: many small rapids that are a barrier to navigation in the dry season ii. Luangprabang –Vientiane: navigable throughout the year but also has difficult sections, even at high water levels. iii. Vientiane-Thakkek-Savannakhet: the navigation could be improved at a relatively low cost, although again, there are several dangerous areas
  18. 18.  In the Pakse – Don Deth section navigation is easier only as far as the Cambodia border where the Khone Falls are an impassable obstacle. A 5- km rail line used to operate in colonial times on Khong Island to transship goods between the top and bottom of the falls. There are 21 river port facilities on the Laos side of the river. Vessels up to 400 DWT can operate year round on the northern section of the Mekong River, while elsewhere operations are limited to barges of 200 DWT or less. In the dry season, most of the river is navigable only by small, shallow-draft, narrow-beam passenger vessels. Vessels of 300 DWT or greater capacity carry mainly industrial and agricultural products. The main commodities handled are sand, rock, wood products, food grains, steel products, and logs. The majority of the traffic is domestic, but international traffic is important on the upper section among China, Lao, Myanmar and Thailand. Since the national road 13S was improved, river freight traffic between Vientiane and Savannakhet has fallen away, whereas there is still thriving river transport on the section between Vientiane and Luang Prabhang because the more severe terrain reduces road transport on that section.
  19. 19. ASEAN Inland Waterway Profile Country Navigable Number Carrying Freight Passenger Length (km) of Capacity Transport Transport Vessels (DWT) (Million (Million Tons) Pax)Cambodia 1,750 n.a. n.a. 0.10 n.a.Lao PDR 4,600 793 8,500 1.10 0.73Myanmar 6,626 2,400 240,000 4.98 45.83Vietnam 11,400 752 239,502 22.70 145.00Total CLMV 24,376 3,945 488,002 28.88 191.56Share in Total 47.8 % 2.9 % 15.7 % 55.8 % 56.5 %Total ASEAN 50,915 134,759 3,115,296 51.72 339.01 Source: United Nations ESCAP, November 1998
  20. 20. 5-Railway transportAssessment Pending the completion of a feasibility study of the Trans-Asian rail link, no firm conclusions on the viability of the various links can be drawn. From preliminary studies, it is clear that the rail route through the Lao parallel to NR13 is the shortest link and would minimize operational costs for Thailand-China traffic. However, the capital cost would be high, much of which would fall on the Lao government. The development of railways in Lao could be considered as an alternative to the road system, particularly in the north-south corridor, and its area of influence, where most of the limited local rail traffic could be generated. The detailed design of a 3.5km from the Middle of Friendship Bridge to Thanaleng had been completed. The construction of railway line from the middle of friendship bridge to Thanaleng of 4km funded by Thai Government
  21. 21.  Trans-Asian Railway Proposed Route in Laos
  22. 22. 6-Customs FormalitiesAssessment The GMS Cross-Border Transport Agreement (CBTA) is a Laos is under compact and comprehensive multilateral instrument that covers all the relevant aspects of cross-border transport facilitation in one document. These include:  single-stop/single-window customs inspection  cross-border movement of persons (that is, visas for persons engaged in transport operations)  transit traffic regimes, including exemptions from physical customs inspection, bond deposit, escort, and agriculture and veterinary inspection  requirements that road vehicles will have to meet to be eligible for cross-border traffic  exchange of commercial traffic rights and  infrastructure including road and bridge design standards, road signs, and signals. The CBTA applies to selected and mutually agreed upon routes and points of entry and exit in the signatory countries. The CBTA includes a preamble and 10 parts, and has 20 annexes and protocols (
  23. 23.  LAOS CUSTOMS CHECK POINT  Lao International Airports  Vientiane International Airport  Luang Prabang International Airport  Pakse International Airport  Savannakhet International Airport  Land border crossing or Checkpoints  I. CAMBODIA – LAOS There are 2 checkpoints between Cambodia - Laos border, one for Land Crossing and the other by River coming from Stung Treng. 1. Stung Treng - Vern Kham: River Crossing (Northern Cambodia - Champasack province, southern Laos) 2. Dong Kralor - Vern Kham - this Land Crossing which is not far from Vern Kham border.
  24. 24.  II.CHINA – LAOS There are 3 check point between China and Laos as following: 1. Mohan - Boten (Yunnan Province - Luang Namtha province) 2. Xiengkok: River Crossing ( Yunnan Province - Luang Namtha province) 3. Sobhun checkpoint (Yunnan province - Phongsaly province) -
  25. 25.  III. THAILAND – LAOS There are 7 border crossings sharing between Laos and Thailand from the north to the south as following detail: 1. Chiang Khong - Houy Xai: (Chiang Rai Province - Bokeo province) 2. Nakaxeng - Kaenthao (Loei province - Sayabouly Province) 3. Nong Khai - Vientiane (Thai-Lao Friendship border 1) 4. Bungkan - Pakxan (Nong Khai province - Bolikhamxai province) 5. Nakorn Phanom - Thakhaek (Nakorn Phanom province - Khammouane province) 6. Mukdaharn - Savannakhet (Mukdaharn province - Savannakhet province via Thai-Lao Friendship border 2) 7. Chong Mek - Vangtao (Ubon Rathchathani Province - Champassak Province)
  26. 26.  However, three main transit transport corridors are used:  Thanaleng transit corridor: from Vientiane to Bankkok: 642km of which 22km are in Laos  Savannakhet Transit Corridor: the distance between Savannakhet and Bangkok is 663km  Pakse Transit Corridor: the distance between Pakse and Bangkok is 747km of which 42km are in Laos. Currently, there are 2 ports for Lao Transit goods in Thailand such as Klong Teui and laem Cha Bang Goods transport operation has been opened free for all transport operators of two sides and has became into effective since firstMarch 2004. Simplify Customs procedures, formalities and documents and eliminate unnecessary inspection have been made Transit Transport Cost has now been significantly reduced by 20- 30%.(If use Lao Trucks will reduce by 40-50%)
  27. 27.  IV. VIETNAM – LAOS There are 7 crossing between Vietnam - Laos as following: 1. Taytrang- Sobhoun (Dien Bien province - Pongsaly Province) 2. Nameo - Banleui (Thanh Hoa province- Huaphanh province) 3. Namkan - NamCan (Nghe An province - Xiengkhuang province) 4. Keonua - Namphao (Ha Tinh province - Bolikhamxai province) 5. Chalo - Napao (Quang Binh province - Khammoun province) 6. Lao Bao - Dansavanh (Quang Tri province - Savannakhet) 7. Bo Y - Phukeua (Kontum province - Attapu province) However, two main transit transport corridors are used:  Road No. 8 from Paksane (Laos) to Cua Lo Port , Vinh (Vietnam) : 257km  Road No. 9 from Savannakhet (Laos) to Danang port (Vietnam): 944km There are two other potential corridors:  R12 from Thakhek to Vung Ang port (Vietnam): 313km  R18 from Pakse to Danang(Vietnam) : 561km Curently, Vietnam has granted Laos to use all existing ports in Vietnam, for Lao Transit Goods, but the most extent are HaiPhong, Kua Lo, Vung Ang, Danang,and Hochiminh city
  28. 28.  IV.MYANMAR – LAOS  Laos has not yet concluded Road Transport Agreement with Myanmar.  The construction of the Friendship bridge across the Mekong River has been projecting  The completion of this bridge, Laos can become land-linked country for Myanmar to Vietnam and Cambodia.  Two border gates have been designated for usage.
  29. 29.  CUSTOMS FORMALITY & IMPORT PAPERWORKS REQUIRED Document Required Diplomatic Misssion and International Organisation in the LAO P.D.R. Household Effects or Live AnimalService Description Car(POV) Diplomatic Goods (Cat or Dog) (HHE or HHG)Invoice and Packing List X XInventory Packing List XMotor Vehicle Description Inventory XPet Sheet Form & Photo XTally Sheet XCopy Airway Bill / Bill of Lading X X XCopy of Valid Passeport of the Owners signature, visas entry to Laos and X X Xcompany StampHealth Certificate XVaccination Book XLao Custom Form D-50 Temporary Import (handled by VNS) X XLao Custom Form D-40 Permanent Import (handled by VNS) X XDebit Note to The Protocole Department, Lao Ministry of Foreign Affairs X X X(Handled by VNS)Certificate or Attestation of personal belonging (Handled by VNS) X X
  30. 30. Document required Private-Owned company, State-owned company & State & Private-owned Company Subject to Subject to 1% Exempted ofService Description Tax and Duty Tax Tax and DutyInvoice & Packing List X X XBill of Lading or Air Way Bill X X XCertificate of OriginDangerous Goods DeclarationPhyto Sanitary CertificateLao Custom Form D-13(handled by VNSFIMC Approval (Foreign Investment Management Committee) X X XVientiane Capital Department of Planning and Investment ApprovalLao Custom Form D-13 for Department of Commerce Approval, Vientiane Capital, X X XMinistry of Commerce (handled by VNS)Custom Clearance at bonded warehouse at Laos Side(handled by VNS) at X X XThanaleang Warehouse or Wattay AirportLao Custom Form D-40 or D-50 for Concerned Ministry Approval (handled by VNS)Ministry of Industrie, Transport and TelecommunicationMinistry of Health X X XMinistry of AgricultureMinistry of EducationMinistry of Labour* Lao Custom Form D-40 or D-50 for Custom Department Approval, Ministry of Finance(handled by Geotrans) X X X* D-13 Temporary Import Clearance; D-40 Permanent Imports; D-50 Temporary Imports
  31. 31. 7-TelecommunicationAssessment The telecommunication in Laos has been much improved. International telephone, Telex, Telefax, and Internet services are available into and out of Laos. (there are now 5 telephone providers) The installation of fiber-optic cable, Microwave system and satellite communications are underway. The completion of these systems will provide Laos a good comprehensive of modern system of international standards and practices.
  32. 32. 8-Case Studiesi. From Mella University Singaporeii. From UNESCAP on Route Vientiane-BKK and Danangiii. From Thammasat University Thailand on trade of Thai_Laos_Vietnamiv. From JESTRO on EWECv. From KIASIA.ORG
  33. 33. Mode of transport of Laos in comparisons with other GMS Road Port IWT Airport Railway Lao PDR Fair/good Poor Fair/poor Poor N/A Myanmar Poor Poor Fair Poor Fair Thailand Good Fair Fair Good/fair Good Vietnam Fair/poor Fair Fair Fair Fair Yunnan Fair/good Fair Fair Good/fair GoodSource: ADB Consultant
  34. 34. i-Case Study 1 MODELLING FREIGHT LOGISTICS: THE VIENTIANE-SINGAPORE CORRIDOR (Nanyang Technological University & Carnegie Mellon University Singapore August 21-24, 2001 ) Channel USD/TEU Duration1 -“Road-Sea” via Danang (Vietnam) 2,150 9/10 days2-“All-Road” via Bangkok (Thailand) 2,139 4/5 days3 – “Road-Sea” via Bangkok Port 1,215 6/7 days4 -“Road-Rail-Road” via Lad Krabang (Thailand) 1,550 7/8 days
  35. 35. ii-Case Study 2
  36. 36. iii-Case Study 3
  37. 37. iv-Case Study 4
  38. 38. iv-Case Study 5Table 1: Costs comparison between using Lamchabang port and Danang port to Yokohama Activities Danang Lamchabang Danang Lam Chabang Cost ($)/TEU Cost ($)/TEU Time/days Time/daysInland trucking cost within Thailand 114 114 1 1Inland trucking cost: Mukdaharn-Danang 1,000 0 2 N/ATransit customs fees: · Thailand (per 1st TEU, next is 50 $) 250 0 · Lao PDR (per 1st TEU, next is 50 $) 350 0 N/A N/A · Vietnam (per 1st TEU, next is 50 $) 150 0Danang Port, Export Customs & Terminal 198 236 1 1Handling Charges (THC) feeFreight charges to Yokohama 580 800 8 10 TOTAL 2,642 1,150 12 12 Source: Compiled from Industry
  39. 39. III. Economics review To be continued in part 2  FDI Overview  GDP Overview  Import Export Overview  Forecast
  40. 40. 1-Summary Laos is a landlocked country. Subsistence rice farming is the mainstay of the economy. It employs approximately 85% of Laos population and generates 51% of GDP. Economic hardship is further exacerbated by low domestic savings Laos experienced startling economic growth from 1988-2007. The Asian country enjoyed excess of 6% growth during this period. Despite this quick growth, Laos remains saddled by a distinct lack of infrastructure and paucity of internal and external telecommunications. Construction is a strong economic driver with a number of road and hydroelectric dam projects going on. The small quantum of domestic savings force Laos to depend on foreign confessional loans and assistance for development of the countrys economy. Laos GDP with respect to purchasing power parity was $12.65 billion in 2007. GDP per capita was $2,000. Agriculture dominates the economy-with 40.9% of GDP. Industry contributes 33.2%. Services contribute 25.9% to the Laos economy. 2.1 million persons make up the labor force. Approximately 30% of Laos population lives below poverty line. Unemployment rate is 2.4% (2005).
  41. 41. 1-Summary The list of agriculture products produced in Laos include corn, sweet potatoes, cotton, peanuts, water buffalo, poultry, and rice. Industries include timber, tin and copper mining, garments, construction, cement, gypsum mining, and tourism. Industrial production growth rate was 12%. Goods worth $970 billion were exported in 2007.  Commodities like coffee, tin, electricity, gold and wood products were exported.  Thailand was the biggest exporting partner with 34.6% of total Laos exports making its way into the country.  Vietnam (10.9%)  China (6.2%) follow behind. Laos imported vehicles, consumer goods, machinery and fuel to the worth of $1.378 billion in 2007. It main trading partners were Thailand (69.4%), China (9.4%) and Vietnam (5.6%).
  42. 42. 2007_Top Three for Laos Import/Export100%90%80%70%60%50%40%30%20%10% 0% Thailand China Vietnam Others Import Export
  43. 43. 1-Summary A Forecast from IMF
  44. 44. Agriculture Products: Sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco,cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry Exports:982.2 million (2006 est.) Exports - commodities:Garments, wood products, coffee, electricity, tin Imports:$1.376 billion f.o.b. (2006 est.) Imports - commodities: machinery and equipment, vehicles, fuel, consumer goods