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Opportunities in the Lao PDR Richard Taylor President Austcham Lao
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Overview
• Market size and structure
• Market Sectors
▫ Mining & Mining Services
▫ Construction & Property
▫ Tourism
▫ Agri-business
• Doing business in Laos
• Austcham Laos
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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
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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
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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
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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
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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
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6M
illi
on
Ar
riv
als
Growing Interest from International hotel chains
Source: Austcham and Lao Tourism Association
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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
Mil
lio
ns
Agricultural Exports by Value
Source: Austcham and UNCTAD 2013 data
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Laos scores relatively poorly in the World Bank’s Ease of Doing Business survey at 178 in 2015 (up 7 places)
Starting a business
Dealing withconstruction 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
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Austcham Laos and its 80 members can help you stay in touch with what is happening in-country….
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Questions?
The Austcham Lao Board with the Hon, Julie Bishop MP, Minister for Foreign Affairs
