The Lao People's Democratic Republic

Laos is a mountainous, landlocked country in Southeast Asia. It shares borders with China and Myanmar to the north, Cambodia to the south, Vietnam to the east, and Thailand to the west. The country is largely mountainous and densely forested, with the Mekong River forming a significant portion of its western boundary with Thailand.

Income group

Lower middle income

Region

Southeast Asia

Capital

Vientiane

Currency

Laotian Kips (LAK)

Administrative divisions

17 provinces and one prefecture (the capital city Vientiane)

Mainland area

236,800 km²

Internet penetration

66.2% (2024)

Mobile phone penetration

88.5% (2024)

Demographic profile

Population hit

0 M

38.6%

Urban population (2023)

61.4%

Rural population​ (2023)

50.4%

Male (2023)

49.6%

Female (2023)

8%

Baby boomer (2022)

15%

Gen X (2022)

25%

Gen Y (2023)

31%

Gen Z (2023)

Employment profile

The labor force reached

0 M

59.6%

Participation rate (2023)

97.6%

Employment rate (2022)

82.4%

Labour force at SMEs (2018)

5.1%

High-skilled labour ratio (2017)

US$ 177

Monthly average household income (2023)

3.5% - 6%

Turnover rate/month (2022)

69.6%%

Employment in Agriculture (2022)

7.2%

Employment in Industry (2022)

23.3%

Employment in Services (2022)

Economic profile​

Laos ranks as the

0 th

-largest economy in the world

US$ 15.2B

GDP (2023)

US$ 2000

GDP per capita (2023)

US$ 1B

Digital economy revenue (2023)

US$ 142.1M

IT services market revenue (2024P)

99.8%

Percentage of SMEs (2020)

US$ 53.9M

Total capital raised in the VC market (2024P)

A growing economy in Southeast Asia

Export turnovers

Laos's export turnovers reached US$ 8.37 billion by 2023

Enterprise registration

In 2022, there were 18,076 enterprise registration in Laos

GDP, by industry

Agricultural cropping contributed the most to Laos's GDP in 2022

US$ 8.37B

Export turnovers (2023)

Top exports

Electrical energy

28.6%

Gold

8.4%

Paper and articles thereof

5.6%

Copper ores

5.1%

Potassium chloride

4.8%

Iron ores

4.9%

Top countries

Thailand

34.5%

China

29.9%

Vietnam

16.6%

Australia

4.6%

Cambodia

2.4%

United States of America

1.4%

18,076

Enterprise registration (2022)

Top industries

Wholesale and retail trade; repair of motor vehicles and motorcycles

51.8%

Transportation and storage

9.17%

Accommodation and food service activities

8.2%

Manufacturing

7.1%

Agriculture, forestry and fishing

4.2%

US$ 15.1B

GDP, by industry​ (2022)

Top industries

Agricultural cropping

11.8%

Wholesale and retail trade; repair of motor vehicles and motorcycles

11.5%

Electricity

11.4%

Taxes on products and import duties, net

11.1%

Construction

9.4%

Doing business in Laos

Opportunities & challenges

Opportunities

• Diversification of the economy

• Foreign investment in the commodities and energy sectors

• Abundant natural resources, agricultural commodities, & forestry

• Expansion of the hydroelectric sector

Challenges

• Persistent and increasing current account deficit

• Very low foreign exchange reserves

• Governance shortcomings, high levels of corruption and major inequalities

• Significant sovereign risk, fragile banking sector

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