Lao People's Democratic Republic  

Quick Facts

Population 7 million (2017)
GDP at PPP (current international dollars) 48 billion (2017)
GDP per capita at PPP (current international dollars) 7,023 (2017)

View GMS contacts.

 

Agriculture remains an important part of the Lao PDR economy, and government leaders have recognized the sector as a key driver for reducing poverty. As part of the GMS program, Lao PDR is working to improve food security and cross-border agricultural trade, as well as reduce trans-boundary animal disease and foster climate change resilience. The ultimate goal is to improve the lives of people in rural areas, and foster economic development.

In the area of energy, Lao PDR is a leader in the Greater Mekong Subregion. Today, Lao PDR supplies 100 percent of its domestic power needs through hydropower, and derives substantial economic benefit from selling excess power to its GMS neighbors. The Lao PDR Government has recognized that providing widely available and affordable energy to people in both urban and rural areas is important for economic development and poverty reduction.

Though diversification is underway, Lao PDR’s economy is primarily resource-based, so environmental sustainability is vital. As Lao PDR’s economic activity has increased, protection of the country’s environment has become increasingly important. Lao PDR is working with its GMS partners to establish biodiversity corridors, and protect critical ecosystems.

The Lao PDR Government is working closely with its GMS partners to improve education and health, and better develop human resources in the country. This has included vocational training programs, as well as work to improve the skills of the country’s health care workers. GMS-supported programs to control communicable diseases and to improve government officials’ management abilities are also underway.

Lao PDR is using mobile and fixed telephone communications, as well as the Internet, to promote human resource development, research, business, and infrastructure development, and to enhance the country’s education system. Telecommunications access is being expanded into remote rural locations, including areas where vulnerable minority groups can benefit.

Lao PDR has seen a rapid increase in tourism in recent years. Its rich cultural and natural sites are attracting a growing number of visitors. Top destinations include Luang Prabang, Champasak, Vientiane, Vang Vieng, and Savannakhet. Direct flights between Cambodia’ Angkor Wat and Luang Prabang are an example of the efforts underway to link GMS tourist sites, and package them as a single destination. Lao PDR’s strategy is to develop tourism in order to generate jobs, protect natural cultural heritage, and reduce poverty.

The Government of Lao PDR is actively encouraging trade and investment with its GMS partners. It has worked to enhance cross-border trade, and has been active partner in the development of economic corridors using transport infrastructure to drive trade and investment.

In the area of transport, Lao PDR has developed better highway connections with Cambodia, PRC, Thailand, and Viet Nam. The country is a vital link in several of the subregion’s major economic corridors, including the North-South Economic Corridor, which spans from Kunming to Bangkok via Lao PDR, another North-South Corridor which traverses Kunming, Mohan, Luang Prabang, Vientiane, Thakhek, Phnom Penh and Sihanoukville, and the East-West Corridor, which stretches 1,500 km from Mawlamyine in Myanmar, to Da Nang in Viet Nam, passing through Savannakhet-Dansavanh in Lao PDR. Through these transport corridors, Lao PDR is transforming itself from a landlocked into a land-linked country, using its location at the center of GMS to facilitate trade and investment from other countries in the subregion.

ADB and the Lao People’s Democratic Republic: Fact Sheet

 

 

Viet Nam President Undertakes First Official State Visit to Lao PDR

Viet Nam President Nguyen Xuan Phuc and Lao PDR President Thongloun Sisoulith pledged to continue to give the highest priority to their bilateral cooperation, and noted the need to closely coordinate in Mekong subregional cooperation mechanisms. The Viet Nam President was in Lao PDR on 9-10 August for his first official overseas visit. On 9 August, he held talks with his counterpart.

GMS in the News

14th Mekong-Japan Foreign Ministers’ Meeting Proposes Joint Working Group on Economic Recovery

The 14th Mekong-Japan Foreign Ministers’ Meeting was held on 6 August 2021 chaired by Mr. Motegi Toshimitsu, Minister for Foreign Affairs of Japan, and attended by Foreign Ministers of the Mekong subregion. The meeting underscored that Japan will (i) continuously support mutual development through the Mekong-Japan cooperation framework, and (ii) help Mekong countries overcome the fight against COVID-19.

GMS in the News

Vientiane toll station photo by _khamla_phimmasone_US$. This file comes from Mapillary.com, a service for sharing geotagged photos. All photos are under a CC BY-SA 4.0

Lao PDR-PRC Expressway to Improve Connectivity and Boost Investment

The planned Lao People’s Democratic Republic (PDR)-People’s Republic of China (PRC) expressway aims to improve the transport of goods and people, promote production, and boost commerce, investment, tourism and services, in line with the Government of Lao PDR's objectives. It spans 440 kilometers and comprises four sections in total. Section 1 running between Vientiane and Vangvieng, is already in use. 

GMS in the News

Lao PDR, Thailand Note Growth in Relations

Thailand Prime Minister Gen. Prayut Chan-O-Cha congratulated newly-elected Lao PDR Prime Minister Phankham Viphavanh in a phone conversation on 8 April. The Lao PDR Prime Minister lauded the government of Thailand's efforts in combating the COVID-19 pandemic and thanked them for the support extended to Lao PDR. He also expressed gratitude for Thailand's support in Lao PDR's human resource development.

GMS in the News