Lao P.D.R.

Commonly known as Laos, the Lao People’s Democratic Republic is one of the few remaining one-party communist states. Ever since transitioning towards a more market-friendly economy in the mid-80s, the government has been encouraging private enterprise and decentralizing control, driving growth rates consistently among the fastest in Asia and fostering social development. The country’s primary strengths lie in its abundant natural resources, including minerals, agricultural commodities and forestry. Laos has also made strides in regional and international integration through its membership in ASEAN and the World Trade Organization, and the diversification of its economy into areas such as hydroelectricity, agri-food, electronics and clothing has attracted foreign investment.

Yet impediments to business initiatives persist, including a limited labor pool and a small domestic market, a fragile banking sector, high corruption levels and poor infrastructure. Furthermore, the country is sensitive to commodity price fluctuations, and vulnerable to regional economic and geopolitical conditions.