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Land of Ample Opportunities and Successes

LAO PDR :  a Strategic Location

Laos is at the center of the GMS, consisting of Cambodia, Myanmar, Thailand, Vietnam and Yunnan province of China.

It is the only county bordering all the other countries in the sub-region.

More than 70% of international trade in Laos (except air freight) is cross border trade

Good Policy Framework

A fast growing economy with sustained annual GPD growth over 6% in the past two decades

National policy identifies quality investments to drive sustainable development and a diversified economy :

The National socio-Economic Development plan (NSEDP) 2011-2015 targets at least 8% annual GPD Growth, 60% of which will be from private investments

The NSEDP also focuses on the quality of growth, particularly on sustainable land and resource use, environmental management and increasing resource use efficiency

Manufacturing, Services, Tourism and Construction sectors are expanding fast

Strong policy framework creates an enabling environment for private investments : recently revised decree on investment promotion 2011

One Stop Service Unit

To fasten and facilitate investments procedures

The government is creating a favorable business environment that is responsive to private sectors needs

One Stop Service brings together representatives from all key ministries to facilitate investments applications and business start-ups


Comparative and competitive Advantages

Political Stability

High Safety

Low risk from natural disasters

Low labor cost

Country of rich natural resources:

Fertile Land, Minerals, Water, and forest giving development potential in Agriculture, mining, and hydropower

Market Access

Access to ASEAN market with more than 500 million inhabitants including southern part of neighboring China

Connects Vietnam and Thailand through the East-West Corridor with special economic zone in Savannakhet acting as a trade and service center

Unilateral Trade agreements with 39 countries including countries in EU, Japan, Australia, India, China and South Korea

Bilateral investment treaties with more than 25 countries from Europe to Asia

Easy regional access with regular direct flights to the major hubs of Bangkok, Hanoi, Kuala Lumpur and Singapore

Special economic Zones

Government strongly encourage investors to develop:

Special economic zone

Export processing zone

Industrial Park


Existing Zones in LAO PDR (9 zones)

Savan-SENO Economic special zone

Boten Dan Kham Economic zone

Dokyil Kham Economic Special zone

Etc .

Other Incentives

Exemption from import duties and taxes on raw materials and capital equipment using for production

Exemption from exports duty on export products

Tax holidays offered up to 10 years

Additional tax holidays, reduced tax rates for large projects with special concession are available upon negotiation

Special treatment for healthcare and education service