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 provides an analysis of key challenges and opportunities for the Greater Mekong Subregion (GMS) to realize its development goals by 2030 and beyond.
The Governments of Lao PDR and Viet Nam will upgrade the Dakta-ok-Nam Giang border crossing between Sekong (Lao PDR) and Quang Nam (Viet Nam) provinces to international status, with the Sekong province opening its first international border crossing on 24 March. This upgrade will further ease the movement of goods and people between the two countries, and shorten the distance between Thailand and Viet Nam via the southern Lao PDR route by more than 100 kilometres.
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.
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 Government of Myanmar released a Strategic Roadmap for Tourism Recovery that aims to establish ‘new normal’ conditions to help tourism make a comeback.
Mr. Ohn Maung, Union Minister of Ministry of Hotels and Tourism, provided guidelines for implementation of the plan. It includes three phases:
The Lao People’s Democratic Republic (PDR) and Myanmar will explore opportunities to enhance tourism cooperation through bilateral and multilateral frameworks. This was agreed by the two countries at the 12th Meeting of Myanmar-Laos Joint Commission for Bilateral Cooperation held in Vientiane, Lao PDR on 6 March 2020.
Lao PDR and Myanmar aim to create a new cooperation master plan. Tourism could help promote each other’s rich culture and heritage and bring their people together.
Lao People’s Democratic Republic (PDR) and Viet Nam plan to upgrade two local border crossing points to international border crossings this year. The plan was announced during the 29th annual border meeting of the two neighboring countries on 26 December 2019 in Ha Noi, Viet Nam.
The Dak Ta-Ok (Lao PDR)–Nam Giang (Viet Nam) between Xekong (Lao PDR) and Quang Nam (Viet Nam) provinces will be the first international crossing point in Xekong. The neighboring countries plan to open this upgraded international border crossing in the first quarter of 2020.
Viet Nam’s Lao Cai province has become a ‘promising destination for foreign investments,’ according to a feature on the Viet Nam Briefing, with its strategic location on the Greater Mekong Subregion (GMS) Northern Economic Corridor and its connectivity to the southwestern region of the People’s Republic of China (PRC). Key sectors of investment in Lao Cai include construction, tourism, and a
Together We Deliver: Grants for a Brighter Future is a special edition of the Asian Development Bank’s (ADB) annual publication featuring stories of lives uplifted across Asia and the Pacific through grant financing by the Asian Development Fund (ADF). The ADF provides grants to support activities that reduce poverty and improve the quality of life in “ADF countries”—the poorest and most vulnerable countries in the region.