Lao People's Democratic Republic
|Population||7 million (2017)|
|GDP at PPP (current international dollars)||48 billion (2017)|
|GDP per capita at PPP (current international dollars)||7,023 (2017)|
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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.
This publication identifies bottlenecks to regional power trading in the Greater Mekong Subregion (GMS) and proposes solutions to overcome them.
Cambodia, Lao PDR, and Viet Nam (CLV) Leaders expressed their firm commitment to strengthen the CLV Development Triangle Area (DTA) in order to accelerate economic growth, alleviate poverty, and promote socio-cultural progress in the subregion. At the 11th CLV Summit held online on 9 December, they adopted a Joint Declaration that provides a foundation for the subregion’s socio-economic development plan until 2030 and the Tourism Development Plan. They also adopted the Development Plan for Sustainable Rubber Industry.
Lao People's Democratic Republic (PDR) Prime Minister Thongloun Sisoulith and Viet Nam Prime Minister Nguyen Xuan Phuc held a phone conversation to discuss bilateral ties and regional cooperation. Noting that Lao PDR and Viet Nam have managed the COVID-19 pandemic well, they highlighted the need to further facilitate cargo and passenger movement between their countries, and to soon reach consensus on plans to reopen mainland border gates and resume commercial flights.
The Government of Cambodia’s Council of Ministers approved two 500 kilovolt (kV) transmission line investment projects in (i) Phnom Penh to the Cambodia-Lao PDR border, and (ii) Battambang to the Cambodia-Thailand border, to prepare to import electricity from its neighbors. The Government of Cambodia is working on increasing the country’s electricity capacity to improve production and competitiveness.
Thailand’s Ministry of Transport is scheduled to complete the 6th Thai-Lao friendship bridge by 2025, according to Mr. Saksayam Chidchob, Thailand Minister of Transport. This new bridge promises to further enhance border trade and promote tourism between Thailand and the Lao People’s Democratic Republic (PDR).
The Chinnakorn Civil Public Company of Thailand signed a memorandum of understanding with the Ministry of Planning and Investment of the Lao People’s Democratic Republic (PDR) to conduct a feasibility study for a new railway line in southern Lao PDR. Mr. Vanhxay Inthalaseth, President of the Chinnakorn Civil Public Company and Ms. Khamchanh Vongsengboun, Lao PDR Deputy Minister of Planning and Investment, conducted the signing on 16 October 2020. The project is expected to promote socio-economic development along areas on the railway route.
The 10th Cambodia, Lao PDR, Myanmar, Vietnam (CLMV) Summit, held on 9 December, emphasized enhancing effective connectivity for regional integration.
Leaders of Cambodia, Lao PDR, Myanmar, Thailand, and Viet Nam adopted the Phnom Penh declaration at the 9th Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) Summit held on 9 December. The declaration emphasizes post-pandemic socio-economic recovery and preparation for future crises and challenges through public health cooperation and enhanced supply chains. ACMECS leaders stressed the importance of vaccine multilateralism to ensure equitable and safe access to coronavirus disease (COVID-19) vaccines.
Cambodia, Lao People’s Democratic Republic (PDR), Myanmar, and Viet Nam (CLMV) economic ministers endorsed the CLMV Action Plan 2021-2022 focusing on (i) trade and investment cooperation, (ii) implementation of regional commitments, (iii) pandemic recovery plan, (iv) Framework for CLMV Development, and (v) human resource development.
The Mekong River Commission Joint Committee called on Lao PDR to address comments and recommendations from Cambodia, Thailand, and Viet Nam for the 1,460-megawatt Luang Prabang hydropower project.