2. OUTLINE TO INVEST OR NOT TO? OVERVIEW OF LAOS MARKET
OVERVIEW POLITICAL OVERVIEW BUSINESS ENVIRONMENT BUSINESS
OBSTACLES
3. SHOULD WE INVEST IN LAOS?
4. OVERVIEW CAPITAL : VIENTIANE POPULATION : 6.8 MILLION
OFFICIAL LANGUAGE : LAO RELIGION : BUDDHISM IMPORTS : $27,863 M
EXPORTS : $36,560 M CURRENCY : LAO KIP (1$= 100 N) GDP (2014) :
$11.1 BILLION GDP GROWTH : 8.1 %
5. MARKET OVERVIEW COMMUNIST COUNTRY - Market based economic
principles - High degree of governmental control - Politically
stable FISCAL & MONETARY CRISIS IN 2013 (-$2.9 BIL) 10-YEAR
AVERAGE GDP GROWTH RATE (8.1%) WORLD TRADE ORGANIZATION MEMBER
(2013) ASEAN ECONOMIC COMMUNITY PARTICIPANT
6. POLITICS LAO PEOPLES DEMOCRATIC REPUBLIC 1975 LAOS
REVOLUTIONARY PEOPLES PARTY CENTRALLY PLANNED ECONOMY -> MARKET
ORIENTED SYSTEM ASEAN (CHAIR IN 2016) STRONG TIES WITH CHINA,
VIETNAM & THAILAND 63 YEARS OF DIPLOMATIC RELATIONS WITH
AUSTRALIA (2015)
7. THE BUSINESS ENVIRONMENT Source: European Chamber of
Commerce and Industry in Lao PDR
8. OBSTACLES FOR THE BUSINESS Source: World Bank 2013
9. SWOT ANALYSIS STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
POLITICAL STABILITY HIGH ECONOMIC GROWTH RELIABLE ENERGY SUPPLY LOW
WAGES BUSINESS FRIENDLY LAWS DECENT LIVING CONDITIONS FOR EXPATS
SMALL DOMESTIC MARKET MODERATE LEVEL OF VOCATIONAL & TECHNICAL
SKILLS POOR INFRASTRUCTURE (HIGH TRANSPORTATION COSTS) WEAK BANKING
& FINANCIAL SYSTEM RICH IN NATURAL RESOURCES GROWING TOURISM
LITTLE COMPETITION HIGH LEVEL BUREAUCRACY AND CLOUDY ADMINISTRATION
CORRUPTION RISING COST OF RAW MATERIALS RISE IN TAXATION
10. INDUSTRIES TO INVEST IN TOURISM INFRASTRUCTURE AGRICULTURE
MINING
11. CULTURE DRESSING AND APPEARANCES GREETINGS SOCIAL OUTINGS
PUNCTUALITY OVERSEAS EDUCATION FOR MANAGERIAL POSITIONS
12. TABOOS DREADLOCKS, TATTOOS & PIERCINGS DISPLAY OF
AFFECTION PHYSICAL CONTACT (HEAD & FEET) MONKS BARE SHOULDERS
& THIGHS
13. COMMUNICATION STYLES Non-confrontational and indirect.
Offer you the response they assume you want to hear. Conflict is
often resolved through an intermediary. Focus on non-verbal cues
such as facial expressions and body language. Often says yes to a
direct question, but meaning that they hear & understand
you.
14. BUSINESS TIPS! Never place your feet on a desk Business
cards in English & Lao Addressed by first name, followed by
Mr/Madame (Than) Social engagements to build trusts Face-to-face
contact
15. CONCLUSION GOOD TO INVEST IN AGRICULTURE, MINING &
TOURISM 6/10 POLITICALLY STABLE GROWING ECONOMY EASY GOING
COMMUNITY BUSINESS FRIENDLY LAWS LOW LABOR COSTS
