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Get to Know About Laos
Laos is a landlocked state in Southeast Asia situated at the soul of the Indochinese peninsula. Myanmar (Burma) and China border it to the northwest, Vietnam to the east, Cambodia to the southwest, and Thailand to the west and southwest. Its capital is Vientiane situated on the Mekong River.
The Laotians as they are known are from a Thai ethnic group native to Southeast Asia. They constitute the majority of the ethnic group (53 percent) and are adherent to Theravada Buddhism. The population is estimated to be 3.6 million. Laos’s economy has been growing on the fast lane in Southeast Asia. The key driver of the economy is trading activities, which grow by 7.5 percent per year. However, the country’s continuing macroeconomic and structural challenges together with reinforcement of its foreign investment policies are commendable.
Doing business in Laos can only get better by stabilizing the growing public debt by strengthening public revenue administration effectiveness through the introduction of electronic tax payments. On the other hand, the nation should shift from the over-reliance of production and export of natural resources, which account for 30 percent of the GDP, to non-resource activities.
Moving forward, diversification of export will help cushion the nation from possible negative shocks affiliated with dependency and lessening economic vulnerability. However, the pointers of doing business in Laos can only be encouraging by investing in human capital and improving transport infrastructure through the private-public partnership.