LAOS

Growth is firm, fundamentals are weak

D4

HIGH RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

The country risk assessments are your North Star metrics to make the right decision for your business and understand the risks in international trade. We have always the best solution for your needs

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GDP USD 18.1bn (World ranking 117, World Bank 2018)
Population 7.06mn (World ranking 103, World Bank 2018)
Form of state Communist state
Head of government BOUNNYANG Vorachit (President)
Next elections 2021, presidential and legislative
  • Strong and stable GDP growth
  • Very rich in natural resources
  • Increased openness to foreign investment in the form of a relatively low tax rate
  • Member of ASEAN
  • High sensitivity to commodity prices (especially in hydropower and mining sectors) makes the economy vulnerable to external shocks
  • Poor infrastructure
  • Unsustainably high, double-digit current account deficits
  • High external debt (around 85% of GDP) mostly owed to China
  • Unprofitable companies are often allowed to continue operating at a loss
  • Very weak business environment, including regulatory quality, perceived corruption and rule of law (in particular contract law is lacking in many key areas relating to trade)

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Thailand 36%
1
63% Thailand
China 32%
2
17% China
Vietnam 14%
3
10% Vietnam
India 3%
4
2% South Korea
Japan 2%
5
2% Japan

Trade structure by product

(% of total)

Exports Rank Imports
Articles of apparel & clothing accessories 30%
1
33% Road vehicles
Gold, non-monetary (excluding gold ores and concentrates) 20%
2
8% Textile yarn and related products
Coffee, tea, cocoa, spices, and manufactures thereof 7%
3
8% Specialised machinery
Cork and wood 5%
4
7% Other industrial machinery and parts
Metalliferous ores and metal scrap 5%
5
5% Power generating machinery and equipment
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