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Laos has abundant mineral wealth, much of which remains unexploited although many foreign firms are active. The power sector, especially hydropower and coal, is open to foreign investment, with many international firms represented. Agribusiness has also attracted foreign investment.
The Lao economy remains dominated by Thailand, Vietnam, and China, with heavy participation in certain sectors by Korea, France, Japan, India, Malaysia, Singapore and Australia. U.S. companies play almost no role in Laos. On the surface, the country is very poor and doing business is difficult. It’s not for the novice exporter, but if you have a taste for adventure it might be the market for you. At the very least, if you are looking at Thailand or Singapore, both markets where U.S. companies do well, you should consider Laos is part of a regional strategy.
The country has a good relationship with the U.S. now, and most of the businesspeople there today have little recollection of the Southeast Asia war during which then President Richard Nixon authorized a secret bombing campaign of the country, then an ally of North Vietnam.
Trade Agreements
Laos became a member of ASEAN in 1997 and has committed to bringing its tariff rates into line with its regional commitments. Laos is currently in negotiations to join the World Trade Organization. The following countries have granted Generalized System of Preference (GSP) status to Laos: Japan (for all products); Australia (no import tax); European Union; South Korea; Norway and Switzerland. Laos has also signed trade agreements with 18 countries, including: Vietnam; China; Cambodia; Burma; Thailand; North Korea; Philippines; Mongolia; Indonesia; Malaysia; Bulgaria; Russia; India; Belarus; Argentina; the United States; Kuwait and Turkey.
The Association of Southeast Asian Nations (ASEAN) was established in 1967 and at present has 10 members (Indonesia, Singapore, Malaysia, Brunei, Philippines, Vietnam, Cambodia, Laos, Thailand, and Burma. It comprises a population of 600m people and has a combined GDP of $2.3 trillion. The ASEAN Secretariat is located in Jakarta, Indonesia.
The purpose of ASEAN is to strengthen cooperation among its member nations on economic, social, cultural, technical, educational, and other fields, and to promote regional peace and stability and respect for the rule of law. In 2003, the decision was made to establish an ASEAN Community by 2020, guided by an ASEAN Charter that provides a legal status and institutional framework for the region. It also codifies norms, rules, and values among member nations, sets targets for regional integration and cooperation, and addresses compliance and accountability towards achieving the goals of the ASEAN Community.
In 2007, the ASEAN Leaders decided to accelerate the implementation of the ASEAN Economic Community (AEC) by 2015. The AEC is the “pillar” under the ASEAN Community most relevant to foreign investors interested in establishing operations or trading in the ASEAN region. The AEC is ultimately designed to create a single market and production base within ASEAN. The AEC will allow for the free movement of goods, services, skilled labor, and investment among the 10 ASEAN member nations and to facilitate the freer flow of capital.
In order to achieve this, ASEAN created the AEC Blueprint. This Blueprint serves as a “master plan” for the implementation of the AEC, outlining targets and timelines for specific reforms. In broad numbers, the AEC, including Laos, constitutes a huge potential marketplace for investors. As a bloc, the 10 ASEAN member nations are a $2.3 trillion market, with average GDP growth of 6 percent per year in the last 15 years. If you manufacture in the AEC region you can ship duty free to Laos.
Market Opportunity
The power sector, especially hydropower and coal, is open to foreign investment, with many international firms represented. Laos has abundant mineral wealth, much of which remains unexploited although many foreign firms are active. Agribusiness, including plantation agriculture (rubber/coffee/timber/corn), has attracted foreign investment.
The Lao government has targeted tourism, especially ecotourism, as a major area of future growth.
Helpfully, Laos was rated the #1 “Place to go” by the New York Times in 2008. And it is a beautiful and fascinating country. Luang Brabang is the former capital of the country before the Communist insurgents toppled and killed the royal family. Their palace still stands by the shores of the majestic Mekong River and receives visitors who marvel at the simple elegance that reflects the lifestyles of the Royals, a teak and bamboo version of Downton Abbey. While in town, and that’s what it feels like, a small village, you can admire the surrounding valley, watch monks parade at dawn, and down an excellent local beer or two as the powerful sun rises above verdant jungle. Distances are short in this part of the world, and you can be soaking in an infinity pool about an hour after departing on your flight from Bangkok, Thailand. http://www.visit-mekong.com/laos/luang-prabang/
Facts
• Location: Southeast Asia
• Land Boundaries: Thailand, Vietnam, Burma, China and Cambodia
• Area Total: 236,800 sq. km. (91,430 sq. mi.); slightly larger than Utah
• Climate: Tropical monsoon; rainy season (May to November); dry season (November to April).
• Population: 6.2 million (2011census)
• GDP Real Growth Rate: 8.0 percent
• GDP value: US$8.298 billion
• GNI – per capita (PPP): US$1,130
• Inflation: 4.3 percent
• GDP by sectors: natural resources 16 percent, services 40 percent, agriculture 30 percent and manufacturing 14 percent.
Important Contacts
Matthew Younger
Economic and Commercial Officer
Unit 8165, BOX V APO AP 96546
Tel: (856-21) 267156
Fax: (856-21) 267120 or 267190
E-mail: youngermb@state.gov
Sivanphone Thoummabout,
Econ/Commercial Assistant
U.S. Embassy, Vientiane.
Unit 8165, BOX V APO AP 96546
Tel: (856-21) 267000 ext 7198;
Fax: (856-21) 267190 OR 267120
Email: sivanphonetx@state.gov
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| PBMF658060M1G1 bearing | 65 | 80 | 60 |
| PBMF658035M1G1 bearing | 65 | 80 | 35 |