Laos has experienced strong economic growth in recent years driven by foreign investment in hydropower, mining and construction. The economy relies heavily on agriculture, which accounts for about 30% of GDP and 75% of total employment. Laos is developing its potential as the "battery of Southeast Asia" through investments in hydropower projects, with over 10 dams currently under construction or planning. China has been a major investor in these projects such as the Nam Khan 2 dam being built by Chinese company Sinohydro.

1. Laos

2. Key Facts
 Geography: land-locked country
 Capital: Vientiane
 Climate: tropical monsoon climate
 Religion: Theravada Buddhism
 Language: Lao
 Economy: benefited from high foreign investment in hydropower, mining, and
construction.
 Agriculture: about 30% of GDP, 75% of total employment.

3. Economy
 GDP - real growth rate:
 8.3% (2011) 7.9% (2010) 7.6% (2009)
 GDP - composition by sector:
 agriculture: 27.8%
 industry: 34.8%
 services: 37.4% (2011)
2007 GDP: US$ 4,053 (agricultural 40.3%, industry 34.1%, service 25.6%) -- World
bank, 2008
 Inflation rate (consumer prices):
 7.8% (2011)
 5.7% (2010)
Note: Industries (copper, tin, gold, and gypsum mining; timber, electric power,
agricultural processing, construction, garments, cement, tourism)

4. Exports
 Exports:
 $1.842 billion (2011 est.)
 country comparison to the world: 142
 $1.474 billion (2010 est.)
 Exports - commodities:
 wood products, coffee, electricity, tin, copper, gold
 Exports - partners:
 Thailand 31.1%, China 23%, Vietnam 12.9% (2010)

5. Imports
 Imports:
 $2.37 billion (2011 est.)
 country comparison to the world: 154
 $2.06 billion (2010 est.)
 Imports - commodities:
 machinery and equipment, vehicles, fuel, consumer goods
 Imports - partners:
 Thailand 65.6%, China 14.6%, Vietnam 6.6% (2010)

9. Laos

10. Laos-economy
Key Macro-Economic Indicators

11. Angola, Laos and
Niger will all benefit
from relatively high
commodity prices

12. Laos-economy
Major Trading Partners, 2010

13. Laos-economy
 Requirements for the World Trade Organization (WTO) accession in 2012
 New Seventh National Socioeconomic Development Plan (2011–15) : broaden
tax income, including the full rollout of value-added tax.
 Financial system: shallowed with high levels of non-performing loans.
 Slow bureaucracy is an impediment and demands for kickbacks are frequent.
 Laos’s investment: hydropower and mining sectors.
 Hydropower: Thailand and Vietnam as key markets.
 Mining: 50% of total export value (mineral and mental ), copper(27%).

14. Laos-hydropower

15. Laos-hydropower Ownership
From total of hydropower plants, 304MW (45%) are under EdL’s
responsibility and another 360MW (54%) are owned by Independent
Power Producer-IPP ( 2 projects) and the rest of 7MW (1%) under
provincial authority.

16. Laos-hydropower
 In 2007 the Lao Government said that by 2015 it was committed to supply
7,000MW to Thailand, 5,000MW to Vietnam and 1,500MW to Cambodia.

Laos plans to build 10 hydroelectric dams over the next five years as part of
plans to become the "battery of South-East Asia
 Of the 10, five are currently under construction:
 Nam Ngum 5 in Vientiane province is 60 per cent complete
 Theun Hinboun expansion in Khammouane province is 78 per cent complete
 Nam Xong in Vientiane province is 30 percent finished
 Nam Nhone in Luang Namtha is 91 percent complete
 Xekhaman 3 in Xekong province is 90 percent complete
 By January, 2012

17. Laos-hydropower
 Controversial Xayaburi Hydropower Project Positions Laos Against
Other Mekong Countries
 1,260MW Xayaburi hydropower project, the first hydropower plant to be built in the
Lower Mekong Basin.
 11 other hydropower projects proposed on the main flow of the Mekong River.

18. Xayaburi Hydropower Project
 CH. Karnchang, a Thai company
based in Bangkok, would lead
construction, with financing from
four Thai banks, and 95% of the
electricity will be sold to Thailand.
 What is more, a positive decision
could also have given the go-ahead to
eight other dam projects in Laos, and
two in Cambodia

19. Hydropower – Chinese Company
 Hydropower plant:
 NEWS: On August 11, 2009, Sinohydro Corporation Limited and EDL signed
contracts for Nam Khan 2, Nam Khan 3 , the total value (around USD 559 million)
 Nam Khan 2: on the part of Nam Khan river 30 km southeast of Luangprbang city in
the northern party of the Laos.
 Nam Khan 3: 70 km east of Luangprbang city.
 Xeset 2: completed on September 9th, 2009 Sinohydro, in the Saravan province,
Sinohydro served as EPC contractor
 Completed Xeset 1
 Planned Xeset 3

20. Conclusion-Laos Hydropower
Three under construction:
 Nam Long & Nam Ngiep 2: in Luang Namtha and Xieng Khuang provinces
 Nam Khan 2: in Luang Prabang province.
 Two under planning: Nam Khan 3, Xeset 3

21. Nam Khan 2 hydropower plant
 Expected to commence in 2015.
 136 metres high and 365 metres long.
 “Construction work on the project is now 15 percent complete.” Electricity du
Laos (EDL) Managing Director Mr Sisavath Thiravong said.(by December 28, 2011 )
 Total investment of about 2.4 trillion kip (US$308 million)
 Exim Bank of China (95 %)
 EDL’s coffers(5 % )
 Construction by the Chinese company Sinohydro.

22. Laos-construction
 House Construction before dam construction
 NEWS: About 300 homes and more than 4,000 hectares of rice and other crops in low-
lying areas along Nam Ngum River in Thoulakhom district, Vientiane province, have
been flooded after the Nam Ngum I Hydropower Plant released water from its reservoir
over the weekend.
 August 23, 2011

23. Construction - Tourist attraction and cultural centre
In December 2011, Wan Feng Shanghai will spend 12,000 billion kip
(more than US$1.5 billion) to develop the marsh into a tourist attraction and
cultural centre.
303 hectares and leave 62 hectares undeveloped.
Includes six villages in Xaysettha and Sisattanak districts
Nonvai, Meuang Noi, Nonkhor Neua, Phonthan, Phonpapao & Donekoi.
Contains open spaces, a public park, lagoon, drainage, roads, a sports
centre, and trade, service centers and a residential area that contain five-
star hotels, shopping centers and entertainment venues.
Development period: 15 to 20 years
Lao Embassy, January 3, 2012

25. Laos-mining
 Sepon Project
 ONGOING drilling at and around Minmetals Resources’ Minerals and Metals Group
(MMG) Sepon project in southeast Laos has returned encouraging results in
shallow oxide gold.
 Vientiane Potash Project
 ASIABASEMETALS has agreed to terms for the acquisition of a 90% interest in a
16.5sqkm potash exploration property in the Huaxieng - Xaithany area of Vientiane
Province.
 The Vientiane Potash Project is currently being expanded to 55sqkm. The resource of
potash salt may be as high as 50 billion tonnes.

26. Laos-mining
 SAMPLING at Argonaut Resources’ Xekong concession in southern Laos
has identified five new gold drill targets peripheral to the Ban Khlong gold
discovery. A possible polymetallic skarn has also been identified in the Ban
Bak area also at Xekong.
 Drill testing in the upcoming Laotian dry season.