INTERNATIONAL DEVELOPMENT GROUP

Laos Country Report – Focus on Construction Sector

The information contained herewith is for general information only and not to be construed as advice of any kind. Accordingly BCA does

not: Make any warranty, express or implied, regarding the accuracy, correctness, completeness or use of any of the information depicted within this report. BCA will also not assume legal liability for the use of any such information or acts or omissions committed as result of

the use of this information.

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Table of Contents 1. Introduction to Laos................................................................................................... 3

a) Geographical Profile ............................................................................................ 3 b) Demographic Profile ............................................................................................ 3 c) Political Profile ..................................................................................................... 3 d) Economic Profile .................................................................................................. 4

2. Construction Industry ................................................................................................ 6

a) GDP Growth .......................................................................................................... 6 b) Foreign Financing ................................................................................................ 6 c) Construction Share of GDP and Growth ............................................................ 8 d) SWOT .................................................................................................................... 10 e) National or Key Projects in pipeline ................................................................... 10 f) Resource issues in the industry ......................................................................... 10 g) Labour Cost .......................................................................................................... 11 h) FDI in construction ............................................................................................... 11

3. Investment Structure, Scheme and Tax.................................................................... 12

a) Forms of Foreign Investments ............................................................................ 12 b) General Customs and Tax System ...................................................................... 12 c) Fiscal Incentives ................................................................................................... 13

4. Engagement by Singapore Government & Company............................................. 16

a) Bilateral relationship between Singapore and Laos ......................................... 16 b) Singapore construction-related company in Laos …........................................ 17

5. Market Assessment..................................................................................................... 17

a) GDP and Economic Growth ................................................................................. 17 b) Construction Industry .......................................................................................... 18 c) Opportunities ........................................................................................................ 19 d) Conclusion ............................................................................................................ 19

6. References .................................................................................................................. 20

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1. Introduction to Laos 2 , 8

a) Geographical Profile

Location South-east Asia, northeast of Thailand, west of Vietnam

Area 236,800 sq km

b) Demographic Profile

Population

6.29 million (IMF data, 2011) Population growth rate

1.655% (2012 est.) Urbanization

Urban population: 33% of total population (2010)

Rate of urbanization: 4.9% annual rate of change (2010-15 est.)

c) Political Profile

Government type

Single party socialist republic

Head of State (President)

Choummaly Sayasone

Head of Government

Prime Minister Thongsing Thammavong

Administrative Divisions

16 provinces Attapu, Bokeo, Bolikhamxai, Champasak, Houaphan, Khammouan, Louangnamtha, Louangphabang, Oudomxai, Phongsali, Salavan, Savannakhet, Viangchan, Xaignabouli, Xekong, Xiangkhouang 1 capital Vientiane

Independence

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19 July 1949 (from France) Ruling Party

Lao People's Revolutionary Party (LPRP) Refer to Annex 4: List of Key Ministers.

d) Economic Profile 2 Overview

The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in 1986. Laos' economy is largely agriculture, dominated by rice cultivation in lowland area. Agriculture accounts for about 30% of GDP and 75% of total employment. Laos' GDP growth exceeded 7% per year during 2008-12. Laos' economy is heavily dependent on capital-intensive natural resource exports. Laos

remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving road system, and limited external and internal land-line telecommunications. Electricity supply is available in urban areas and in many rural districts. Poverty rate (by World Bank index) has been dropping from high 46% in 1992 to 26% in 2010. The economy has also benefited from foreign direct investment in hydropower, copper and gold mining, and construction though some projects have drawn criticism for their environmental impacts. Laos gained Normal Trade Relations status with the US in 2004. On the fiscal side, Laos initiated a VAT tax system in 2010. Simplified investment procedures and expanded bank credits for small farmers and small entrepreneurs have improved Laos' economic prospects. The government opened the country's first stock exchange in 2011 and participating in regional economic cooperation initiatives. Laos was admitted to the WTO in 2012.

GDP (purchasing power parity)

$19.16 billion (2012 est.) GDP (real growth rate)

8.3% (2012 est.) GDP (per capita)

$3,000 (2012 est.)

Income groups (below poverty, LI, MI, and HI)

Population below poverty line: 26% (2010 est.)

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FDI inflow 8

Figure 1 shows the amount of FDI inflow into Laos from various countries. The top 2 investors in Laos were Vietnam and Thailand due to their close proximity to Laos.

Figure 1: Top 10 FDI Countries (1989 – 2012)

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2. Construction Industry

a) GDP growth 3

Economic growth will remain rapid in the forecast period from 2013 – 2014, averaging 8.1% a year. Despite weaknesses in the global economy, GDP growth in Laos will continue to be supported by its main trading partners in the region, most notably China. The development of several power projects will also help to keep economic growth healthy in 2013-14. High global prices for minerals have created strong foreign interest in Lao’s mining sector. Many of largest global mining companies are already operating in the country and looking to expand production there. Such is the level of interest in the mining industry that parliament has put pressure on the government to slow down the rate of approving new concessions; as the legislature lacked the capacity to monitor them properly. The construction of the Laos-China railway should boost economic growth, but the extensive use of Chinese engineers and workers on the project will mean that the main benefit to Laos would only be the time taken to transport goods. This will be reduced in the long term when it is completed. Severe flooding in 2011 hit agricultural output in that year, but improvements in productivity should continue to occur in 2013-14 (weather permitting) as large areas of farmland are leased to foreign investors. The outlook for services is partly dependent on the health of other economies in the region, given that the majority of tourists visiting Laos come from South-east Asia. A decline in the price of copper in 2013 would have an adverse impact on Laos’s rate of export growth, but development of the hydropower sector will increase the diversity of the export base.

b) Foreign Financing 7

The Asian Development Bank (ADB) started supporting the Government of the Lao People’s Democratic Republic (Lao PDR) since it joined ADB as a founding member in 1966. ADB has extended development assistance to the Lao PDR since 1968 and remains one of the largest multilateral financiers of the country. In the 1970s and 1980s, assistance was focused mainly on projects involving infrastructure development in transport and energy, as well as agriculture. Other development partners include the Agence Française de Développement, the Australian Agency for International Development, the German Society for International Cooperation, the International Fund for Agricultural Development, the Japan International Cooperation Agency, the Organization of the Petroleum Exporting Countries Fund for International Development, the Nordic Development Fund, the World Bank, as well as the governments of the People’s Republic of China, the Republic of Korea, Thailand, and Viet Nam.

The Lao PDR has received $1.7 billion for 75 loans as of December 2011. The Figure 2 below shows the amount of loans that ADB had granted for the development of various sectors.

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Figure 2: Cumulative ADB Lending by Sector as of 31 December 2011

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c) Construction Share of GDP and Growth 9

i. Share of GDP The construction share of GDP as of 2011 is 6.1%.

Sector Estimated Revised data

Revised data

Estimated

2008 2009 2010 2011

Agriculture 30.1 30.5 29.6 28.1

Planting and livestock 22.6 23.8 23.4 22.7

Forestry 4.0 3.3 2.9 2.1

Fishing 3.4 3.5 3.4 3.3

Industry 25.9 24.5 25.9 27.5

Mining and quarrying 9.9 6.9 7.2 7.0

Manufacturing 8.7 10.2 9.4 9.6

Electricity and water 2.5 2.7 4.0 4.8

Construction 4.7 4.8 5.3 6.1

Services 37.4 38.7 38.1 38.1

Wholesale and retail trade, repairs 18.9 19.6 19.2 19.3

Hotels and restaurants 0.7 0.7 0.7 0.7

Transport, Storage, post and communication

4.6 4.9 4.8 4.8

Financial intermediation 3.2 3.4 3.4 3.5

Real estate and business services 3.2 3.1 3.0 3.0

Community, social and personal services

1.6 1.7 1.7 1.7

Private households with employed persons

0.6 0.7 0.7 0.7

Producers of government services 6.7 7.3 7.6 7.6

Financial intermediation services (indirectly measured)

2.1 -2.7 -2.9 -3.0

Gross Value Added 93.3 93.8 93.5 93.6

Taxes on products and Import duties, net

6.7 6.2 6.5 6.4

Total share of GDP at market prices 100.0 100.0 100.0 100.0

Table 1: Share of Gross Domestics Products (GDP) by Industry (%)

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ii. Growth

The growth rate of construction sector as of 2011 is 24.8%.

Table 2: Growth rate of Gross Domestic Products (GDP) by Industry (%)

Sector Estimated Revised data

Revised data

Estimated

2008 2009 2010 2011

Agriculture 3.7 2.8 3.2 2.7

Planting and livestock 3.7 7.5 3.4 4.9

Forestry 4.5 (23.5) -3.5 -18.8

Fishing 2.6 4.0 8.0 5.1

Industry 10.4 18.5 17.5 14.6

Mining and quarrying 20.6 49.3 12.6 5.2

Manufacturing 9.4 6.8 7.0 9.7

Electricity and water 6.2 (7.4) 63.1 29.5

Construction 5.1 28.5 20.0 24.8

Services 9.7 6.0 7.0 8.1

Wholesale and retail trade, repairs 7.3 6.8 6.5 8.7

Hotels and restaurants 6.3 7.1 6.1 13.8

Transport, storage, post and communication

8.1 5.5 6.7 8.5

Financial intermediation 22.7 8.6 9.0 12.3

Real estate and business services 2.6 2.5 3.5 8.0

Community, social and personal services 6.2 6.2 6.2 7.5

Private households with employed persons

10.5 7.5 5.0 5.3

Producers of government services 25.8 13.4 12.9 5.9

Financial intermediation services (indirectly measured)

36.5 35.2 16.6 12.4

Gross Value Added 7.7 7.8 8.4 8.2

Taxes on products and Import duties, net 9.0 3.5 4.5 6.2

Growth rate of Gross Domestic Products at Constant Price 2002

7.8 7.5 8.1 8.0

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d) SWOT i. Strengths

Laos have one of the lowest construction cost by virtue of construction

methods etc in the region Increasing international investment interest from Japan, China and

Asian Development Bank (lending) etc.

ii. Weaknesses Widespread corruption Large unskilled working population Migration of unskilled workers to neighbouring countries due to better

prospects in neighbouring countries like Vietnam Poor infrastructure (water and sewerage systems) One of the poorest countries in South East Asia.

iii. Opportunities

Poor infrastructure provides opportunities for growth in the

construction and infrastructure sectors Geographical location provides excellent opportunities in transport and

rail projects Tourism-related projects

iv. Threats

Weak political influence Tensions over hydropower projects with Cambodia and Vietnam Risk of ethnic unrest due to ethnic diversity

e) National or Key Projects in pipeline

Refer to Annex 1: List of Projects in Laos SEZs.

f) Resource issues in the industry 6

The scarcity of qualified personnel with the competition for both skilled and unskilled labour is set to continue to increase. The Labour employment and engagement situation in Laos is made worst as there may be as many as 100,000 foreign workers from China, Thailand and Vietnam currently employed (officially and unofficially) in Lao PDR. (According to the Ministry of Labour and Social Welfare (MoLSW)) Lao PDR primarily exports unskilled labourers while the imports are commonly semi-skilled and skilled. MoLSW also estimates that the labour force is growing at a rate of 2.5 percent per annum with 55,000 new workers entering the job market every year. However, most of the population in Lao PDR are employed in agriculture sector. The construction sector has expanded dramatically in the last few years since 2009. Key construction labor employment is in Vientiane, but there are also significant take up rates in Pakse, Savannakhet, Luang Prabang and Khamouane

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provinces. The upper skill levels, or approximately 30 percent, consist of imported labor from Vietnam, Thailand and China.

g) Labour cost 6

The labour cost per worker is about US$400 - 500 per month.

Figure 3: Labour costs per worker (US$)

h) FDI in Construction Sector 9

Table 3 shows the amount of FDI in construction sector between 2005 to 2011.

Table 3: FDI in Construction Sector (Unit: US$1,000)

Construction

Year

2005 2006 2007 2008 2009 2010 2011

Number of projects

3 3 - 10 9 6 19

Foreign investment

1,550 - - 56,452 24,677 - 152 136.00

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3. Investment Structure, Scheme and Tax 5

Lao PDR’s investment policies had been formulated with a view to attract domestic and foreign investment in Lao PDR. In 2009, the law on investment promotes the investment in all sectors and areas throughout the country except in areas and business operations which are detrimental to national security, the natural environment, public health and the national culture. a) Forms of Foreign Investments 11

i. Joint venture between foreign and domestic investors A joint venture is an enterprise established and registered under the laws of the Lao People’s Democratic Republic, operated and jointly owned by foreign and domestic investors. The organisation, management, operation and the relationship between the shareholders of the joint venture are set out in an agreement made by both parties and in the articles of such joint venture. Foreign investors investing in a joint venture must contribute at least thirty percent (30%) of the joint venture’s registered capital. Capital contributed in foreign currency must be converted into Kip based on the exchange rate of the Bank of the Lao People’s Democratic Republic on the day of the capital contribution.

ii. Businesses investment by contract

A business investment by contract is a business arrangement between domestic and foreign legal entities defined in the agreement without establishing a new legal entity or branch office in the Lao PDR. The objectives, forms of cooperation, business term, rights and obligations, responsibilities and benefits of each party must be determined in a contract. (This is similar to securing a contract for providing construction services with the local company and the investment depends on the contract negotiated)

iii. One Hundred Percent (100%) Foreign Owned Enterprise

A one hundred percent (100%) foreign owned enterprise is an enterprise established in the Lao People’s Democratic Republic in which the investment is made by a foreign investor only. Such enterprise may be incorporated as a new legal entity or as a branch of a foreign investment enterprise.

b) General Customs and Tax System 10

i. Regular Customs

Regular Import duty rates are between 3% - 40% Indirect taxes include

Business turnover tax between 5% - 10%

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Excise tax between 5% - 90%

Direct taxes include

Corporate Profit Tax Existing law on tax: Foreign (20%) and Domestic (35%)

Minimum tax at the rate of 0.1% of total revenue

Personal income tax between 0% - 25% (progressive rate) after revising the law on tax

Fees and service charge

c) Fiscal Incentives 10

i. Investment Promotion Incentives

According to Article 49 of the Investment Promotion Law (IP Law), the promoted sectors are agriculture, industry, handicraft and services. Details of promoted activities under the sectors are determined by the Government and classified into three different levels based on prioritized activities of the Government, the activities related to the poverty reduction, the improvement of living conditions of people, construction of infrastructure, human resource development, jobs creation, etc. The Government has established the following fiscal incentive systems.

ii. Incentive on Corporate Profit Tax

Figure 4: Zones of Lao PDR (refer to Figure 5 for Zoning Map)

Zone 1: Mountainous, plateau zones with no economic infrastructure to facilitate investments;

Zone 2: Mountainous, plateau zones with a moderate level of economic infrastructure to accommodate investments;

Zone 3: Plateau zones with good economic infrastructure available for investments.

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Figure 5: Zoning Map

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iii. Specific Promotion Incentives

Investment in the construction of hospitals, kindergartens, academic schools, vocational schools, colleges, universities, research centers and public utilities shall obtain the exemption of rental or land concession as follows:

Figure 6: Incentives

iv. Other Promotion Incentives In addition to the corporate tax incentives, investors shall be also entitled to customs duty and tax incentives, as follows:

Exemption from profit tax in the next accounting year, if the net profit derived from business activities is used for business expansion.

Exemptions from import duties for the importation of raw material, equipment, spare parts and vehicles which are directly used for production. However, exemption of import tax shall comply with specific regulations.

Exemption from export duties for exportation of general goods and products. The exportation of natural resources and natural resources-made products shall comply with concerned regulations and laws. The importation of all types of fuel is not exempted from duties and taxes.

If an investor suffers losses after completion of tax finalization with the tax office, the investor shall be permitted to carry the losses forward to three consecutive accounting years. After ending of the period, any remaining losses shall not be allowed to be deducted from profit. For special economic zones and specific economic zones, the provision of incentive treatment shall be in compliance with the Decree on the Establishment and Activities of respective zone.

For details, refer to Annex 2: Guide to Investing in Laos (2011)

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4. Engagement by Singapore Government & Company

a) Bilateral relationship between Singapore and Laos 1

i. The President of the Government Inspection Authority and Head of the Anti-Corruption Authority of Lao PDR Dr Bounthong Chitmany visited Singapore from 15-18 October 2012. He called on Deputy Prime Minister, Coordinating Minister for National Security and Minister for Home Affairs Teo Chee Hean, and was hosted to dinner by Second Minister for Foreign Affairs Grace Fu.

ii. Senior Parliamentary Secretary for National Development and Defence Dr

Mohamad Maliki Osman visited Laos from 26-28 September to attend the 34th Meeting of the ASEAN Ministers on Agriculture and Forestry (AMAF), and the 12th AMAF plus three. Dr Maliki also visited the Napho Singapore-Laos Tilapia Hatchery in Vientiane to launch a training course for Lao officials on modern tilapia culture and post-harvest technology.

iii. Minister for Foreign Affairs and Minister for Law K Shanmugam made his

introductory visit to the Lao PDR from 27-28 March 2012 where he met with Prime Minister Thongsing Thammavong and Lao Deputy Prime Minister and Minister of Foreign Affairs Dr. Thongloun Sisoulith. Minister Shanmugam and DPM Thongloun also witnessed a MOU signing between Singapore-based charity Animal Concerns Research and Education Society (ACRES) and the Lao Zoo to establish a Bear and Wildlife Protection Programme in Laos.

iv. Then-Mayor of South East District Matthias Yao attended the celebrations of the 450th anniversary of Vientiane as the Lao Capital in Vientiane from 18-20 November 2010 at the invitation of the Lao government. Together with other Heads of Delegations, Then-Mayor Yao called on HE Somsavat Lengsavad, Standing Deputy Prime Minister of Lao PDR. Then-Mayor Yao also participated in the official 450th anniversary celebrations at the Lao National Sports Complex.

v. Standing Deputy Prime Minister (SDPM) Somsavat Lengsavad visited Singapore from 24-28 June 2010. During his visit, SDPM Somsavat met with Prime Minister Lee Hsien Loong, then-Senior Minister Goh Chok Tong and then-Senior Minister and Coordinating Minister for National Security Professor S Jayakumar. SDPM Somsavat was Guest of Honour at the Laos Investment Seminar 2010 jointly organised by International Enterprise Singapore and the Singapore Business Federation, and attended a business luncheon hosted by Minister of State for Trade and Industry Mr Lee Yi Shyan.

vi. Lao Deputy Prime Minister and Minister of National Defence, Lieutenant-

General (LG) Douangchay Phichit visited Singapore from 6-8 June 2010 in conjunction with his attendance at the 9th Shangri-La Dialogue. During the visit, LG Douangchay met with Deputy Prime Minister and Minister for Defence Teo Chee Hean.

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b) Singapore construction-related company in Laos

i. Tham & Wong LLP

Tham & Wong LLP is a firm of civil and structural (C&S) engineers offering consulting services to the construction industry. The firm is registered in Singapore and their services extend to Asia with projects undertaken in China, Indonesia, Vietnam, Thailand, Myanmar and Malaysia. Tham & Wong was established in 1991 to succeed the firm of Tham & Wong Consultants Pte Ltd which was established since 1984. They are also able to offer mechanical and electrical engineering, project and construction management services. Tham & Wong LLP had been venturing overseas since 2005. They are doing a project in Hanoi, Vietnam with CapitaLand and also the Vientiane Nelamit SEZ project in Laos with UPL Lao Company. Tham & Wong LLP is the C&S consultant to UPL.

The Lao government granted UPL Lao Company a permit to establish a special economic zone in Hadxaifong district. The zone will include a hypermarket, shopping mall, hospital, hotels, shop houses, flats and entertainment complexes. The district is near the Lao-Thai Friendship Bridge, used by hundreds of Lao nationals daily to so shopping in Nong Khai, Thailand, across the Mekong River. The land size of this project is about 56 hectares. However, UPL Lao Company is in talks with the government to secure another 100 hectares.

5. Market Assessment

a) GDP and Economic Growth 3

Lao PDR is on an increasingly sustainable development path. Reforms underway have reduced poverty and stimulated growth. The economy has expanded on average by 7.1 percent per year from 2001 to 2010, and is expected to grow by 7.6 percent per year in 2011-2015. In 2011, Lao PDR reached a GNI per capita of US$1,010. As such, it had moved up from its lower economy income status to a lower-middle income economy. At this pace, Lao PDR is on track to achieve its long term vision; to graduate from the Least Developed Country status by 2020.

Natural resources, and in particular mining and hydropower, remain the driving forces of economic growth, despite a policy that had suspended new mining ventures for four years pending the resolution of disputes between villagers and the government over the award of land concessions. The mining sector accounts for around 10% of GDP, and further expansion is set to occur during the forecast period. Around one-fifth of all approved mining projects (which number 290 in total) were operational as of mid-2012, with a further 107 projects in the prospecting stage. In mid-September one of Laos's largest mining companies, Phu Bia, announced new finds of 6m-7m tonnes of copper and gold ore at its project in Phonsavan.

As Laos attracts more foreign investment, the banking sector and real-estate development are also expected to contribute to growth. An industrial base is developing, and the National Economic Research Institute predicts that industry will grow by 15.5% in 2012/13. Laos is attracting manufacturers of computer components and accessories, while its garment industry had compensated for falling European orders by selling more of its output to Asian countries.

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Investment in services is climbing, with several upmarket hotels, shopping centres and golf courses under construction.

b) Construction Industry

i. Overview

Future growth in the Laotian construction sector is likely to be fuelled by high FDI in natural resources, high public investment including Official Development Assistance in infrastructure, and a current real estate boom in major urban centres in the country.

The trend is expected to continue at least in the medium term due to uncertainty in the long term. It is estimated that there are currently about 300 registered construction companies in the country and about 1,000 small contractors involved in construction works. They collectively employed more than 120 thousand workers (the largest sector in terms of employment as estimated by the Lao Construction Association).

The Lao PDR construction sector however relies heavily on imported skilled labor from China and Vietnam as well as a large number of skilled Thai workers. According to the Lao Construction Association, the average proportion of foreign workers in the construction sector ranges from 30 percent to 80 percent depending on the size and sophistication of construction projects.

The indigenous contractors are not able to produce good quality construction because most of the labour is unskilled. However, the Lao government has in place, a system of building legislations and codes of practice to govern the industry. This is administered by the Department of Housing and Urban Planning under the Ministry of Public Works and Transport.

ii. Current situation 4

As of February 2013, the government has suspended infrastructure projects that were initially contracted as project financed (mostly BOT or BOOT projects) funded entirely by private contractor.

The government’s decision to halt these kinds of project financing was because of the ultimate cost of such projects were generally set and found to be too high resulting in increased subsequent public debt and corruption without the benefit being returned to the Government and people in reasonable time. Originally, the government had introduced such a system to stimulate and jump-start economic development, but has since rationalized the value worth of such developments.

iii. Ongoing Projects

(KPL) Vietnam’s Civil Engineering Construction Joint Stock Company No. 525 on March 15 signed a contract to build seven bridges on national highway 6A in the Lao northern province of Houaphan.

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The company, which is an affiliate of the Ministry of Transport Civil Engineering Construction Corporation No. 5, will build the bridges with US$5.3 million from the World Bank.

Chitchareun - a company operated by Overseas Vietnamese in Laos - and Houaphan Transport Department signed a contract to build road No. 3204 in the province with an investment of US$52 million.

Xayaburi Dam project 3

In 2012, Laos had officially begun construction work on a controversial hydropower project, the Xayaburi dam. The US$3.5bn scheme - the first hydropower scheme on the lower Mekong River had been opposed by neighbouring Cambodia and Vietnam on environmental grounds. But political manoeuvring by the Lao government appeared to have enabled it to override these concerns for now. According to environmental groups and scientific bodies, the dam could adversely affect fish populations and farmers downstream. Many Cambodians depend for their livelihoods on fish that breed in the Mekong, and it is feared that the dam may block spawning routes and thereby decimate fish stocks. The Mekong delta, Vietnam's major food producing area, is already threatened by rising salinity levels. Experts claim that the construction of more dams along the Mekong will prevent vital fresh water and sediment from reaching the delta, thus aggravating environmental degradation there. Laos maintains that its process for the dam's development is transparent and that it is working on solutions to the objections from neighbouring countries. The government's determination to go ahead with the project, which is being built by Thai contractors and will supply most of the electricity produced to Thailand, signals its increasing confidence on the regional stage. Since seizing power in 1975, the ruling Lao People's Revolutionary Party (LPRP) usually takes its cue from Vietnam's Communist Party. However, increasing foreign investment and support from new allies, most notably China, appear to have given the LPRP a greater sense of independence.

c) Opportunities 5

Refer to Annex 3: Opportunities in Laos.

d) Conclusion

Every developing country will experience rural to urban migration and will be in a

need for urban development and key infrastructures such as roads, rail, power,

water and sewerage. To supplement the literacy growth of its population, it will

then invest in employment generating sectors such as manufacturing (textiles,

electronics paper, rubber, and powder), industrial and logistics parks. And as the

country moves forward, tourism will bring in the much needed revenues to keep

the economy active. Foreign direct investments from emerging countries will soon

make headway into a FDI-reliant country like Laos. The earlier sections of this

report would have provided a glimpse of the type of opportunities that will be

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available for the construction and infrastructure sectors. Hence, it is envisioned

that Laos will bring about an abundance of opportunities in the near future.

6. References

1. Ministry of Foreign Affairs:

http://www.mfa.gov.sg/content/mfa/countries_and_region/southeast_asia/laos.ht

ml

2. Central Intelligence Agency: https://www.cia.gov/library/publications/the-world-

factbook/geos/la.html

3. Economic Intelligence Unit – Laos Country Report (4th Quarter 2012)

4. Vientiane News:

http://www.bol.gov.la/english/Govt%20to%20clamp%20down%20on%20projects

%20contracted%20out%20to%20private%20sector.jpg

5. Laos National Chamber of Commerce & Industry

http://www.laocci.com/index.php?option=com_content&view=article&id=60&Itemi

d=29&lang=en

6. World Bank report on Laos Investment Climate Assessment (2011)

7. Asian Development Bank: http://www.adb.org/countries/lao-pdr/main

8. Invest Laos: http://www.investlaos.gov.la/show_encontent.php?contID=29

9. Laos Statistics Bureau:

http://www.nsc.gov.la/index.php?option=com_content&view=article&id=31&Itemid

=32&lang=

10. Annex 2: Guide to Investing in Laos

11. Foreign Investment Law:

http://www.investlaos.gov.la/show_encontent.php?contID=18