Austcham Lao opportunities in the Lao PDR

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    09-Aug-2015

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  1. 1. Opportunities in the Lao PDR Richard Taylor President Austcham Lao
  2. 2. 2 Overview Market size and structure Market Sectors Mining & Mining Services Construction & Property Tourism Agri-business Doing business in Laos Austcham Laos
  3. 3. 3 The Lao economy has been the fastest growing economy in Asia over the past decade and is closing the per capita income gap with its neighbours 0 200 400 600 800 1000 1200 Per Capita GDP Lao PDR Vietnam Cambodia 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Laos Growth % GDP Source: Austcham and World Bank
  4. 4. 4 A graphical depiction of the Lao economy shows how heavily dependent the economy is on natural resource industries Source::: Lao PDR Export Treemap from MIT Harvard Economic Complexity Observatory
  5. 5. 5 With 250+ mineral concessions supply opportunities exist for mining services. Mining is the largest export sector by sales constituting 36% of exports 8% 20% 36% 20% 14% 2% Composition Exports 2013 All food Agriculture Minerals Electricity Manufactures Other Source: Austcham and UNCTAD Database Source: Austcham and Dept Geology MoNRE
  6. 6. 6 The property, real estate and construction sectors are booming, largely with Chinese investment in property and Thai investment in hydropower Vientiane New World Development That Luang Marsh Re-Development Don Sahong and Xayaburi dams High Speed Train Project
  7. 7. 7 17% CAGR of tourist arrivals has seen the tourism emerge as a dominant sector of the Lao market. Visits are often connected to trips to Thailand 0 1 2 3 4 5 6 MillionArrivals Growing Interest from International hotel chains Source: Austcham and Lao Tourism Association
  8. 8. 8 Agribusiness is one of the top development sectors for Laos. Thailand is aggressively pursuing expansion into the growing agricultural sector of Laos 0 500 1000 1500 Germany Japan India China Thailand Top Trade Partners Source: Austcham and UNCTAD Database $0 $20 $40 $60 $80 $100 $120 $140 Millions Agricultural Exports by Value Source: Austcham and UNCTAD 2013 data
  9. 9. 9 Laos scores relatively poorly in the World Banks Ease of Doing Business survey at 178 in 2015 (up 7 places) Starting a business Dealing with construction permits Getting electricity Registering property Getting credit Protecting investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency Laos Source: Austcham and World Bank Ease of Doing Business
  10. 10. 10
  11. 11. 11 Austcham Laos and its 80 members can help you stay in touch with what is happening in-country.
  12. 12. 12 Questions? The Austcham Lao Board with the Hon, Julie Bishop MP, Minister for Foreign Affairs

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