Opportunities in Lao PDR – APPLY NOW!

Lao PDR is positioning itself as the region’s energy hub with large-scale infrastructure projects helping drive economic growth which is estimated at 7% p.a. The country’s GDP per capita is USD 1,760 and its annual inflation rate is estimated at 1.5%.

Lao PDR has a population of 6.9 million and its currency is the Kip.

Bangkok Bank

We entered Lao PDR in 1993 and today have branches in Vientiane and Pakse. Our Pakse branch’s strategic location allows it to connect businesses from southern Lao PDR to Cambodia and Thailand’s northeast.

Opportunities

Lao PDR’s determination to build new transport infrastructure, allied to its limited productive capacity, means it needs to import most of its building materials. One of the biggest projects over the next few years will be the construction of the joint Laos-China railway which will connect China, Lao PDR and Thailand at a cost of over 200 billion baht. Although the railway is being built by Chinese companies, there are still abundant opportunities for Thai companies both in terms of supplying materials and as subcontractors.

Lao PDR has a growing market for consumer goods, but aside from basic foodstuffs most products are imported, especially from Thailand. The local garment industry has excellent potential with relatively low wages, a young population, new infrastructure and favorable trade agreements. Agriculture is another sector rich with potential, particularly for suppliers of agricultural equipment.

Challenges

The market is small with only 800,000 of the total population of approximately 7 million living in cities, while Laotians with money travel frequently to Thailand to do their shopping. There are many restrictive laws and regulations – e.g. trading has to be done through local intermediaries rather than directly with the consumer as foreigners are only allowed to operate in the wholesale sector, not retail. There are also restrictions on doing business in currencies other than the local Kip.

Tips for investing and doing business

It’s crucial to know exactly what you can and can’t do in Lao PDR – this means being very familiar with local laws and regulations, and ideally working with an experienced, local partner.

To find out more about these exciting opportunities, please contact:

Ms. Chadaphorn Uratchat, Branch Manager, Vientiane Branch

Tel: (856) 21 213 560, (856) 21 213 562, (856) 21 250 473

Email: bblvtb@bangkokbank.com

Note: Information up-to-date as of October 2017