laos country overview
CHINA
N
VIETNAM
0100
Thai Nguyen
Hanoi
Kilometres
Viet Tri
Hong Gai
Taunggyi
Haiphong
Nam Dinh
LAOS
Route 13
Chiang Mai
Vinh
Nam Theun II
Vientiane
Route 28A
SEPON
Route 9
Dong Ha
Hue
Pa-An
Savannakhet
Khon Kaen
Da Nang
THAILAND
Nakhon Sawan
Ubon Ratchatani
Pakse
Nakhon
Ratchasima
Sari Buri
CAMBODIA
Bangkok lao PeoPle’s Democratic rePublic (lao PDr), or laos
Kꢀꢁ Fꢂꢃꢄꢅ
Geography:ꢀ Laosꢀisꢀaꢀland-lockedꢀcountryꢀinꢀmainlandꢀSoutheastꢀAsia.ꢀItsꢀtotalꢀlandꢀareaꢀisꢀapproximatelyꢀ237,000ꢀsquareꢀꢀ ꢀ
ꢀkilometresꢀ(similarꢀinꢀsizeꢀtoꢀtheꢀStateꢀofꢀVictoria,ꢀtheꢀUnitedꢀKingdomꢀorꢀtheꢀStateꢀofꢀUtah).ꢀLaosꢀisꢀborderedꢀꢀ ꢀ
ꢀbyꢀChina,ꢀVietnam,ꢀCambodia,ꢀThailandꢀandꢀBurma.ꢀ
Capital:ꢀ Vientiane
Population:ꢀ 6.5ꢀmillion
Climate:ꢀ Laosꢀhasꢀaꢀtropicalꢀmonsoonꢀclimate,ꢀwithꢀaꢀwetꢀseasonꢀfromꢀJuneꢀtoꢀSeptember/October.ꢀTemperaturesꢀareꢀꢀ ꢀ
ꢀcoolestꢀduringꢀDecemberꢀandꢀJanuaryꢀandꢀhighestꢀinꢀAprilꢀandꢀMay.
Religion:ꢀ TheravadaꢀBuddhismꢀisꢀtheꢀstateꢀreligionꢀofꢀLaosꢀandꢀisꢀfollowedꢀbyꢀapproximatelyꢀ65ꢀpercentꢀofꢀLaoꢀpeople.
Language:ꢀ Lao,ꢀaꢀtonalꢀlanguageꢀsimilarꢀtoꢀThai.ꢀEnglishꢀisꢀtheꢀmostꢀwidelyꢀspokenꢀsecondꢀlanguage.
Economy:ꢀ GDPꢀ(realꢀgrowthꢀrate)ꢀ7%ꢀ(2007ꢀest)ꢀ
ꢀGDPꢀbyꢀsectorꢀ(2006)
• agriculture:ꢀ42.7%ꢀ
• industry:ꢀ31%ꢀ
• services:ꢀ26.2%
Industries: ꢀ Agriculture,ꢀmanufacturing,ꢀmining,ꢀhydro-electricꢀpower,ꢀagriculturalꢀprocessing.

ꢂIꢆꢅꢀRꢃ
TheꢀrecordedꢀhistoryꢀofꢀLaosꢀdatesꢀbackꢀtoꢀtheꢀ14thꢀCenturyꢀwhenꢀ theꢀindependentꢀKingdomꢀofꢀLaneꢀXangꢀ(oneꢀmillionꢀelephants)ꢀ
firstꢀemerged.ꢀItꢀwasꢀduringꢀtheꢀLaneꢀXangꢀperiodꢀthatꢀTheravadaꢀ
BuddhismꢀwasꢀintroducedꢀtoꢀLaos.ꢀConflictsꢀwithꢀSiamꢀandꢀotherꢀ neighboringꢀcountriesꢀoccurredꢀoverꢀlaterꢀcenturies.ꢀInꢀtheꢀearlyꢀ
18thꢀCenturyꢀtheꢀKingdomꢀsplitꢀintoꢀthreeꢀpartsꢀwhichꢀwereꢀruledꢀ independentlyꢀandꢀnamedꢀtheꢀLuangꢀPrabang,ꢀVientianeꢀandꢀ
ChampassakꢀKingdoms.
Inꢀ1893ꢀLaosꢀwasꢀestablishedꢀasꢀaꢀFrenchꢀProtectorate.ꢀItꢀremainedꢀ soꢀuntilꢀdeclaringꢀindependenceꢀfromꢀFranceꢀinꢀ1949ꢀ-ꢀfollowingꢀaꢀ fewꢀyearsꢀofꢀpoliticalꢀinstabilityꢀafterꢀJapaneseꢀoccupationꢀduringꢀ
WWII.ꢀFullꢀindependenceꢀwas,ꢀhowever,ꢀnotꢀachievedꢀuntilꢀ1953ꢀ whenꢀaꢀconstitutionalꢀmonarchyꢀwasꢀre-established.ꢀSubsequentꢀ resistanceꢀtoꢀtheꢀmonarchyꢀwasꢀledꢀbyꢀaꢀgroupꢀknownꢀasꢀtheꢀPathetꢀ
Lao,ꢀwhoꢀestablishedꢀcloseꢀtiesꢀwithꢀChinaꢀandꢀVietnam.ꢀSomeꢀ degreeꢀofꢀpoliticalꢀinstabilityꢀcontinuedꢀuntilꢀ1975,ꢀwhenꢀtheꢀPathetꢀ
LaoꢀtookꢀcontrolꢀofꢀVientiane,ꢀtheꢀmonarchyꢀwasꢀabolishedꢀandꢀtheꢀ
PathetꢀLaoꢀformedꢀtheꢀLaoꢀPeoplesꢀDemocraticꢀRepublicꢀ(“Laoꢀ
PDR”).ꢀLaosꢀhasꢀenjoyedꢀpoliticalꢀstabilityꢀsinceꢀthen.ꢀꢀ
PꢀPꢇLꢁꢅIꢀꢈ
TheꢀpopulationꢀofꢀLaosꢀisꢀapproximatelyꢀ6.5ꢀmillion.ꢀPopulationꢀ densityꢀisꢀ24ꢀperꢀsquareꢀkilometre;ꢀoneꢀofꢀtheꢀlowestꢀinꢀAsia.ꢀLaos’ꢀ populationꢀisꢀethnicallyꢀdiverse.ꢀ
TheꢀmajorꢀethnicꢀgroupsꢀareꢀtheꢀLaoꢀLoumꢀ(lowland)ꢀ68%,ꢀLaoꢀ
Theungꢀ(upland)ꢀ22%,ꢀLaoꢀSoungꢀ(highland)ꢀincludingꢀtheꢀHmongꢀ
(“Meo”)ꢀandꢀtheꢀYaoꢀ(Mien)ꢀ9%.ꢀEthnicꢀVietnameseꢀandꢀChineseꢀ representꢀ1%ꢀofꢀtheꢀpopulation.ꢀ
TheꢀlanguageꢀspokenꢀisꢀLao,ꢀaꢀtonalꢀlanguageꢀsimilarꢀtoꢀThai.ꢀ
Beforeꢀ1975,ꢀFrenchꢀwasꢀtheꢀpredominantꢀforeignꢀlanguageꢀspoken.ꢀ
Betweenꢀ1975ꢀandꢀ1989,ꢀmanyꢀLaoꢀstudiedꢀRussianꢀorꢀotherꢀSovietꢀ
Blocꢀlanguages.ꢀAmongꢀyoungꢀLao,ꢀEnglishꢀisꢀnowꢀtheꢀmostꢀwidelyꢀ spokenꢀsecondꢀlanguage.
TheravadaꢀBuddhismꢀisꢀtheꢀstateꢀreligionꢀofꢀLaosꢀandꢀisꢀfollowedꢀbyꢀ approximatelyꢀ60ꢀpercentꢀofꢀLaoꢀpeople.ꢀ
GEꢀGRꢁPꢂꢃ
Laosꢀisꢀaꢀland-lockedꢀcountryꢀinꢀmainlandꢀSoutheastꢀAsia.ꢀItsꢀtotalꢀ landꢀareaꢀisꢀapproximatelyꢀ237,000ꢀsquareꢀkilometresꢀ(similarꢀinꢀ sizeꢀtoꢀtheꢀStateꢀofꢀVictoria,ꢀtheꢀUnitedꢀKingdomꢀorꢀtheꢀStateꢀofꢀ
Utah).ꢀLaosꢀisꢀborderedꢀbyꢀChina,ꢀVietnam,ꢀCambodia,ꢀThailandꢀandꢀ
Burma.ꢀTheꢀMekongꢀRiverꢀformsꢀaꢀlargeꢀpartꢀofꢀLaos’ꢀborderꢀwithꢀ
Thailand,ꢀandꢀ1,800ꢀofꢀtheꢀriver’sꢀ4,000ꢀkilometresꢀpassꢀthroughꢀ
Laos.ꢀMainꢀtownsꢀ(includingꢀVientiane,ꢀLuangꢀPrabang,ꢀPakseꢀandꢀ
Savannakhet)ꢀareꢀlocatedꢀadjacentꢀtoꢀtheꢀriver.
CLIꢄꢁꢅE
Laosꢀhasꢀaꢀtropicalꢀmonsoonꢀclimate,ꢀwithꢀaꢀwetꢀseasonꢀfromꢀJuneꢀ toꢀSeptember/October.ꢀꢀTemperaturesꢀareꢀcoolestꢀduringꢀDecemberꢀ andꢀJanuaryꢀandꢀhighestꢀinꢀAprilꢀandꢀMay.ꢀ

ECꢀꢈꢀꢄꢃ
Laosꢀhasꢀpromotedꢀeconomicꢀliberalisationꢀsinceꢀ1986ꢀunderꢀ theꢀNewꢀEconomicꢀMechanismꢀ(“NEM”).ꢀUnderꢀthisꢀprocess,ꢀtheꢀ
Governmentꢀshiftedꢀfromꢀitsꢀtraditional,ꢀplannedꢀeconomyꢀtowardsꢀaꢀ freeꢀmarketꢀsystem.ꢀTheꢀresultꢀhasꢀbeenꢀaꢀmarket-basedꢀeconomy,ꢀ whichꢀguaranteesꢀamongstꢀotherꢀthings,ꢀtheꢀrightꢀforꢀeachꢀLaoꢀ citizenꢀtoꢀownꢀprivateꢀpropertyꢀandꢀprovidesꢀprotectionꢀforꢀbothꢀ domesticꢀandꢀforeignꢀinvestment.ꢀ
Whileꢀstillꢀaꢀdevelopingꢀcountry,ꢀLaosꢀhasꢀmadeꢀstrongꢀgainsꢀparticularlyꢀwithꢀrespectꢀtoꢀmacroeconomicꢀstabilisationꢀinꢀ recentꢀyears.ꢀTheꢀeconomyꢀhasꢀgrownꢀstronglyꢀandꢀreducedꢀpovertyꢀsignificantlyꢀforꢀmoreꢀthanꢀaꢀdecade.ꢀInꢀtheꢀ1990s,ꢀrealꢀ
GDPꢀgrewꢀbyꢀanꢀannualꢀaverageꢀrateꢀofꢀ6.3ꢀpercentꢀ–ꢀdespiteꢀtheꢀsharpꢀfall-offꢀinꢀgrowthꢀduringꢀtheꢀregionalꢀcrisisꢀofꢀ1997-
1999ꢀ–ꢀandꢀexportsꢀgrewꢀatꢀaroundꢀ15ꢀpercentꢀaꢀyear.ꢀ
LaoꢀPDRꢀhasꢀsignificantꢀnaturalꢀresourceꢀendowmentsꢀincludingꢀminerals,ꢀforestryꢀandꢀhydro-electricꢀpotential.ꢀ
Urbanisationꢀisꢀlowꢀatꢀaboutꢀ20%ꢀandꢀagricultureꢀisꢀstillꢀtheꢀmajorꢀsector,ꢀcontributingꢀ42.7ꢀpercentꢀofꢀGDPꢀandꢀemployingꢀ aboutꢀ80ꢀpercentꢀofꢀtheꢀlabourꢀforce.ꢀAgricultureꢀisꢀdominatedꢀbyꢀsubsistenceꢀfarming.
TouristꢀnumbersꢀcontinueꢀtoꢀincreaseꢀandꢀtourismꢀisꢀoneꢀofꢀLaosꢀ‘sꢀhighestꢀsourcesꢀofꢀforeignꢀcurrency.ꢀ
Ongoingꢀreformsꢀtoꢀforeignꢀinvestmentꢀframework,ꢀincludingꢀstreamlinedꢀapprovalꢀproceduresꢀandꢀsimplifiedꢀimportꢀ controls,ꢀhaveꢀattractedꢀlargeꢀinvestmentsꢀ-ꢀnotꢀonlyꢀinꢀtheꢀSeponꢀprojectꢀ-ꢀbutꢀalsoꢀinꢀhydropower,ꢀtelecommunications,ꢀ manufacturingꢀandꢀaviation.ꢀForeignꢀinvestmentꢀisꢀactivelyꢀencouragedꢀandꢀsupportedꢀbyꢀtheꢀGovernmentꢀandꢀisꢀ increasingꢀannually.
Inꢀ1997,ꢀLaosꢀwasꢀadmittedꢀtoꢀtheꢀAssociationꢀofꢀSoutheastꢀAsianꢀNationsꢀ(ASEAN),ꢀanꢀimportantꢀstepꢀinꢀconsolidatingꢀ economicꢀreformꢀandꢀtheꢀparticipatingꢀinꢀtheꢀpoliticalꢀintegrationꢀofꢀSoutheastꢀAsiaꢀandꢀinꢀNovemberꢀ2004,ꢀLaosꢀhostedꢀ theꢀ10thꢀASEANꢀSummitꢀinꢀVientiane.ꢀ
LaosꢀisꢀalsoꢀinꢀtheꢀprocessꢀofꢀjoiningꢀtheꢀWorldꢀTradeꢀOrganisationꢀandꢀwasꢀgrantedꢀnormalꢀtradeꢀrelationsꢀwithꢀtheꢀUSAꢀ inꢀearlyꢀ2005.ꢀAlsoꢀsignificantꢀtoꢀLaoꢀeconomicꢀdevelopmentꢀwasꢀtheꢀrecentꢀconfirmationꢀfromꢀtheꢀWorldꢀBankꢀthatꢀitꢀ wouldꢀbackꢀtheꢀUS$1.5ꢀbillionꢀNamꢀTheunꢀIIꢀhydro-powerꢀproject.ꢀTheꢀapprovalꢀwasꢀaꢀveryꢀstrongꢀvoteꢀofꢀconfidenceꢀforꢀ
Laos’ꢀabilityꢀtoꢀsuccessfullyꢀdevelopꢀaꢀprojectꢀofꢀthisꢀscale,ꢀandꢀitsꢀcapabilityꢀofꢀdoingꢀsoꢀinꢀaꢀsociallyꢀandꢀenvironmentallyꢀ appropriateꢀmanner.ꢀLaosꢀisꢀinꢀaꢀuniqueꢀpositionꢀasꢀanꢀenergyꢀrichꢀnationꢀinꢀanꢀenergyꢀhungryꢀregionꢀandꢀthisꢀprojectꢀwillꢀ provideꢀaꢀveryꢀsignificantꢀboostꢀtoꢀtheꢀLaoꢀeconomy.ꢀ
2002ꢀwasꢀtheꢀ50thꢀanniversaryꢀofꢀtheꢀestablishmentꢀofꢀdiplomaticꢀrelationsꢀbetweenꢀAustraliaꢀandꢀLaos.ꢀAccordingꢀtoꢀtheꢀ
DepartmentꢀofꢀForeignꢀAffairsꢀandꢀTradeꢀ(DEFAT)ꢀAustraliaꢀenjoysꢀaꢀpositiveꢀreputationꢀinꢀLaosꢀbothꢀasꢀaꢀresultꢀofꢀthisꢀlongꢀ unbrokenꢀrelationshipꢀandꢀaꢀhighꢀprofileꢀdevelopmentꢀCooperationꢀprogram.