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Laos Country Overview

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Laos Country Overview LAOS COUNTRY OVERVIEW N CHINA 0 100 VIETNAM Thai Nguyen Kilometres Viet Tri Hanoi Taunggyi Hong Gai Haiphong LAOS Nam Dinh Chiang Mai Route 13 Vinh Nam Theun II Vientiane Route 28A Dong Ha Pa-An Savannakhet SEPON Khon Kaen Hue Route 9 Da Nang THAILAND Nakhon Sawan Ubon Ratchatani Pakse Nakhon Sari Buri Ratchasima Bangkok CAMBODIA LAO PEOPLE’S DEMOCRATIC REPUBLIC (LAO PDR), OR LAOS Key Facts Geography: Laos is a land-locked country in mainland Southeast Asia. Its total land area is approximately 237,000 square kilometres (similar in size to the State of Victoria, the United Kingdom or the State of Utah). Laos is bordered by China, Vietnam, Cambodia, Thailand and Burma. Capital: Vientiane Population: 6.5 million Climate: Laos has a tropical monsoon climate, with a wet season from June to September/October. Temperatures are coolest during December and January and highest in April and May. Religion: Theravada Buddhism is the state religion of Laos and is followed by approximately 65 percent of Lao people. Language: Lao, a tonal language similar to Thai. English is the most widely spoken second language. Economy: GDP (real growth rate) 7% (2007 est) GDP by sector (2006) • agriculture: 42.7% • industry: 31% • services: 26.2% Industries: Agriculture, manufacturing, mining, hydro-electric power, agricultural processing. HiSTORY The recorded history of Laos dates back to the 14th Century when the independent Kingdom of Lane Xang (one million elephants) first emerged. It was during the Lane Xang period that Theravada Buddhism was introduced to Laos. Conflicts with Siam and other neighboring countries occurred over later centuries. In the early 18th Century the Kingdom split into three parts which were ruled independently and named the Luang Prabang, Vientiane and Champassak Kingdoms. In 1893 Laos was established as a French Protectorate. It remained so until declaring independence from France in 1949 - following a few years of political instability after Japanese occupation during WWII. Full independence was, however, not achieved until 1953 when a constitutional monarchy was re-established. Subsequent resistance to the monarchy was led by a group known as the Pathet Lao, who established close ties with China and Vietnam. Some degree of political instability continued until 1975, when the Pathet Lao took control of Vientiane, the monarchy was abolished and the Pathet Lao formed the Lao Peoples Democratic Republic (“Lao PDR”). Laos has enjoyed political stability since then. POPULATION The population of Laos is approximately 6.5 million. Population density is 24 per square kilometre; one of the lowest in Asia. Laos’ population is ethnically diverse. The major ethnic groups are the Lao Loum (lowland) 68%, Lao Theung (upland) 22%, Lao Soung (highland) including the Hmong (“Meo”) and the Yao (Mien) 9%. Ethnic Vietnamese and Chinese represent 1% of the population. The language spoken is Lao, a tonal language similar to Thai. Before 1975, French was the predominant foreign language spoken. Between 1975 and 1989, many Lao studied Russian or other Soviet Bloc languages. Among young Lao, English is now the most widely spoken second language. Theravada Buddhism is the state religion of Laos and is followed by approximately 60 percent of Lao people. GEOgrAPHY Laos is a land-locked country in mainland Southeast Asia. Its total land area is approximately 237,000 square kilometres (similar in size to the State of Victoria, the United Kingdom or the State of Utah). Laos is bordered by China, Vietnam, Cambodia, Thailand and Burma. The Mekong River forms a large part of Laos’ border with Thailand, and 1,800 of the river’s 4,000 kilometres pass through Laos. Main towns (including Vientiane, Luang Prabang, Pakse and Savannakhet) are located adjacent to the river. CliMATE Laos has a tropical monsoon climate, with a wet season from June to September/October. Temperatures are coolest during December and January and highest in April and May. www.oxiana.com.au ECONOMY Laos has promoted economic liberalisation since 1986 under the New Economic Mechanism (“NEM”). Under this process, the Government shifted from its traditional, planned economy towards a free market system. The result has been a market-based economy, which guarantees amongst other things, the right for each Lao citizen to own private property and provides protection for both domestic and foreign investment. While still a developing country, Laos has made strong gains particularly with respect to macroeconomic stabilisation in recent years. The economy has grown strongly and reduced poverty significantly for more than a decade. In the 1990s, real GDP grew by an annual average rate of 6.3 percent – despite the sharp fall-off in growth during the regional crisis of 1997- 1999 – and exports grew at around 15 percent a year. Lao PDR has significant natural resource endowments including minerals, forestry and hydro-electric potential. Urbanisation is low at about 20% and agriculture is still the major sector, contributing 42.7 percent of GDP and employing about 80 percent of the labour force. Agriculture is dominated by subsistence farming. Tourist numbers continue to increase and tourism is one of Laos ‘s highest sources of foreign currency. Ongoing reforms to foreign investment framework, including streamlined approval procedures and simplified import controls, have attracted large investments - not only in the Sepon project - but also in hydropower, telecommunications, manufacturing and aviation. Foreign investment is actively encouraged and supported by the Government and is increasing annually. In 1997, Laos was admitted to the Association of Southeast Asian Nations (ASEAN), an important step in consolidating economic reform and the participating in the political integration of Southeast Asia and in November 2004, Laos hosted the 10th ASEAN Summit in Vientiane. Laos is also in the process of joining the World Trade Organisation and was granted normal trade relations with the USA in early 2005. Also significant to Lao economic development was the recent confirmation from the World Bank that it would back the US$1.5 billion Nam Theun II hydro-power project. The approval was a very strong vote of confidence for Laos’ ability to successfully develop a project of this scale, and its capability of doing so in a socially and environmentally appropriate manner. Laos is in a unique position as an energy rich nation in an energy hungry region and this project will provide a very significant boost to the Lao economy. 2002 was the 50th anniversary of the establishment of diplomatic relations between Australia and Laos. According to the Department of Foreign Affairs and Trade (DEFAT) Australia enjoys a positive reputation in Laos both as a result of this long unbroken relationship and a high profile development Cooperation program..
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