LAOS THE GREAT LEAP FORWARD

Published in

NOVEMBER - DECEMBER 2016

www.foreignaffairs.com/country-focus/laos LAOS: THE GREAT LEAP FORWARD p.1 The Great Leap Forward p.2 ASEAN – Turning Vision into Reality The U.S. Dimension p.4 Time for Investment p.6 Powering Ahead: Turning Laos into ASEAN’s

‘Battery’ © Laos International Development Co.Ltd World Trade Center p.7 Local Leaders in the Power Industry p.8 Thirst for Fuel Drives Competition p.10 Financing the Country’s Growth p.12 Telecommunications Taking Off p.14 The Reward of Taking the Initiative p.16 Getting a Taste of Laos p.17 Laos’ New Breed of Entrepreneurs p.18 The Intelligent Way to Market p.19 Towards a World-Class Destination SPONSORED SECTION | LAOS - 1 LAOS THE GREAT LEAP FORWARD

www.foreignaffairs.com/country-focus/laos

WITH MUCH PRIDE, THE ’S DEMOCRATIC REPUBLIC (PDR) LAST YEAR CELEBRATED FORTY YEARS OF INDEPENDENCE. Over the course of four decades, Lao PDR (otherwise known as Laos) has remodeled itself. From a country torn by civil war, it has changed into a stable and peaceful nation with big ambitions. Lao PDR today is counted among the world’s fastest growing economies and is set on a course of full regional and international integration.

Over the past two decades, the gross domestic product (GDP) of Laos has grown at an average annual rate of more than seven percent. This has transformed the country from a largely agrarian society into a mobile, upward-oriented economy. The country completed the transition in 2011 from low-income economy to lower-middle income economy, followed by admission to the World Trade Organization (WTO) in 2013. And in 2014, the services sector overtook agriculture as the country’s largest contributor to GDP. Much progress Thongloun Sisoulith, Prime Minister of the Lao PDR has also been made in achieving the country’s upper-middle income country by 2030, with Gross Millennium Development Goals (MDGs), set by the National Income (GNI) per capita projected at five United Nations. Laos has come close to meeting its times the size of what it is today. targets, particularly in terms of poverty reduction and “Our medium-term national development vision, improvement of health and education. or Vision 2030, is to develop a more sustainable “The achievements over the past forty years and equitable modern economy,” explains Khemmani represent a leap in progress for the Lao people,” says Pholsena, Minister of Industry and Commerce. “In Prime Minister Thongloun Sisoulith. The government order to make contributions to achieving both 2020 of Laos is committed to moving the nation higher on the and 2030 development plans, our trade and private scale of developing countries. Prime Minister Sisoulith sector development strategies aim to promote a more explains, “The Lao PDR is focusing all of its efforts on diversified economy.” poverty reduction, infrastructure development, and Although the economy is growing fast, it is building an economic foundation for industrialization however largely based on the exploitation of the and modernization, in order to graduate the country country’s natural resources. Laos trades primarily in from the ‘least developed country’ status.” agricultural and forestry products, minerals (including The government’s 8th National Socio-Economic gold, copper, zinc and lead), and electricity generated Development Plan (NSEDP) sets targets for annual from hydropower. Mining and electric power exports GDP growth of no less than 7.5 percent over the currently account for more than two thirds of total next five years. It also makes a commitment to more exports. Economic diversification is therefore high on sustainable growth and improved access to education, the government’s agenda. which are crucial factors for the country’s future “We adopted a development strategy to promote competitiveness. At the current pace of development, diversification that is built on three pillars: enhancing Laos is likely to outgrow its ‘least developed country’ enterprise competitiveness, creating a business- status by 2020. Moreover, the government’s 15-year friendly environment, and deepening economic development plan foresees Laos developing into an integration,” says Minister Pholsena. Establishment of the AEC is not without challengesEstablishment of the outweighlargely to expected are benefits the Still, “The visit by President Barack Obama Obama Barack President by visit “The chapter new a open will PDR Lao the to two our between relationship the in countries.” Lao PDR Thongloun Sisoulith, Prime Minister of the way for future growth in trade and investment betweenway for future growth in trade and investment the two countries,” says Mai Sayavongs, Ambassador of the Lao PDR to the United States. Laos already works closely with the U.S. in the InitiativeMekong Lower framework of the regional (LMI), which the U.S. has been funding for years. projects“These says, Sisoulith Minister Prime As have contributed significantly to the socio-economic development of the countries including the Lao PDR.” During his visit in , President Obama announced that the U.S. would double funding toyears three next the over annually million $90 to support demining efforts in Laos. Earlier this year, the U.S. also announced it was launching a $6 million nutritional program addressed at school children. Minister’s Office, and ASEAN Senior Officials MeetingsOffice, and ASEAN Senior Minister’s acreate to want “We adds: Laos, for Leader (SOM) whichmarket a base, production and market single only within the Asian world butis fully integrated not also in the global economy.” for Laos. Companies and industries face competitionfor Laos. Companies especially as import tariffsfrom within the community, goods are phased out byon even the most sensitive Nicoll, Country Director of the2018. Also, as Sandra Lao PDR Resident Mission,Asian Development Bank, importantit is a whole the country as explains, “For peopleyoung the that ensure to education on focus to community.” new this in prosper to skills right the have more attractivebecome is likely to costs. The country the more jobs.to investment, which in turn will lead to that “LaosMinister Pholsena furthermore expects its economy.will see lower-cost imports coming into that useThis will help improve the efficiency of firms imported materials and it will benefit consumers.”

Alounkeo Kittikhoun, Minister to the Prime the to Minister Kittikhoun, Alounkeo The country’s dedication is reflected in Laos’The country’s dedication

The United States is seeking greater engagement withengagement greater seeking is States United The Summit heldthe region. A special U.S.-ASEAN Leaders very first ofin the United States earlier this year - the betweenits kind - confirmed a strategic partnership attendedthe U.S. and ASEAN. President Obama also this year.the ASEAN Summit in Vientiane in September to LaosThe first ever visit of a sitting U.S. President was a historic event for Lao-U.S. relations. have the “The leaders of our two countries will opportunity to exchange views, covering a number of areas such as trade, investment and bilateral exchanges at all levels,” said Prime Minister Sisoulith prior to the meeting. “The visit by President Barack Obama to the Lao PDR will open a new chapter in the relationship between our two countries.” Trade between the U.S. and Laos is still limited, but TradeU.S. the of Office The growth. experiencing is it Representative reports that trade in goods grew five-fold in the past ten years to $70 million, while agricultural trade grew eight-fold to $8 million. The two countries FrameworkInvestment and Trade signed a historic todoor the opening year, this February in Agreement thepaves agreement “The investment. and trade more current chairmanship of the Association of Southeastcurrent chairmanship The association has entered aAsian Nations (ASEAN). when the ASEAN Economichistoric moment in time starting to become a reality. TheCommunity (AEC) is betweenAEC will gradually abolish all trade barriers free marketASEAN’s ten member states to create a PDR willfor more than 600 million people. “The Lao the ASEANbe the first country, in cooperation with Visionmember states, to turn the ASEAN Community Sisoulith.2025 into reality,” says Prime Minister enhance”We will continue the integration process, narrow theconnectivity, and redouble efforts to development gap among member states.” The country’s location in the very heart of Southeast location in the very The country’s region presents a clear Asia’s high-growth Sisouvong, Ambassador toopportunity as Sayakane Iceland, describes, “We have athe UK, and becoming [the] Switzerlandlong-term vision of Laos in this part of the world.” Regional integration is a principal element of Laos’ development strategy. “The Lao PDR has built strategy. “The Lao Laos’ development element of integration is a principal Regional environment of ensure a regional countries to with all neighboring beneficial relations mutually “This is Thongsing Thammavong. Prime Minister trust,” says former equality, and peace, stability, development.” for socio-economic the foundation

ASEAN – Turning Vision into Reality into Vision – Turning ASEAN The U.S. Dimension

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SPONSORED SECTION | LAOS - 4 Time for Investment The government of Laos is counting on growth Laos’ Special Economic Zones across sectors to achieve the ambitious targets The establishment of Special and Specific Economic of the 8th National Socio-Economic Development Zones (SEZs) in Laos has boosted the country’s Plan. This depends on growth in the agricultural growth and development. and forestry sectors, in industry, and in services. “The objective of SEZs is to attract domestic and An estimated $27 billion, which is equivalent foreign investments; create a strong foundation for to 30 percent of national GDP, is required to industrialization; contribute to GDP growth, technology implement the plan. A mix of state investments, transfer, and job creation; and increase government loans, and private investments is expected to revenue,” explains Bouatha Khattiya, Standing Vice provide the necessary funding. The biggest Chair of the Lao National Committee for Special contribution - about 55 percent - is to come from Economic Zones (NCSEZ). “Ultimately this is to attain domestic and foreign investors in the private our goal of graduating from LDC status by 2020.” sector. Laos currently operates a total of twelve SEZs, Most foreign investments currently originate covering a total area of about 19,000 hectares. More from , although and also than 290 foreign and domestic firms have invested remain to be important investment partners. in the SEZs with activities divided between the “Since 2009 the relationship between the Lao service sector, industry, and trade. Invested capital PDR and People’s Republic of China has grown already exceeds more than $1.6 billion. This has led into a strategic partnership,” says Prime Minister to significant improvements in infrastructure, both Sisoulith. “Our cooperation has increased inside the zones and in surrounding areas, and has significantly in the areas of people-to-people created about 15,600 jobs. exchange, trade, development assistance, and The government is hoping to spread this investment. success across the country, with more SEZs to China financed the construction and launch be constructed over the next ten years, many of Laos’ first communications satellite last year in remote and rural areas. “The SEZ strategy and it currently cooperates with Laos on a $6 envisions the establishment of 25 SEZs throughout billion railroad project linking southern China to the country by 2020,” says Khattiya and further Bangkok through Laos. explains, “In addition to industry and manufacturing, “Lao PDR’s ability to attract inward investment the strategic plan focuses on tourism, trade, and compares favorably with regional competitors and services, and on logistics for SEZs that are located the LDC (least-developed countries) average,” in border areas.” says Minister Pholsena; however, she also points Laos has introduced a number of measures in to the fact that “investment is almost entirely order to drive foreign and domestic investment in the resource-seeking rather than efficiency-seeking SEZs. It offers attractive incentive packages, including and an estimated 80 percent of foreign direct tax exemption for equipment and raw materials for investment (FDI) goes to the energy and mining infrastructural construction, as well as lower income sector.” tax and lower value added tax compared to investments Accordingly, the government is pushing for outside the zones. In addition, the administrative more diversity and for investments to strengthen process for investors has been greatly simplified. Laos’ role in the region. Minister Pholsena Khattiya explains, “In each and every zone there is explains, “We will make extra efforts to promote a One-Stop Service office (OSS) with the authority to manufacturing industries, especially agro- make decisions regarding investments in the zone. processing industries, tourism, and other service Investors can get their business license directly from sectors where Laos has a comparative advantage. the OSS without having to go to several offices.” Since most key export markets are opened for For Standing Vice Chair Khattiya, the economic Lao products, our focus will be on developing zones have contributed to raising Laos’ profile as an supply capacity and improving the environment investment destination: “SEZs in Laos have attracted for doing business.” many world-class companies such as Aeroworks, Sally Burningham, Country Manager Lao PDR, Essilor, Nikon, Toyota, Mascot and others, which World Bank, comments that “the country is at a have been exporting their products ‘Made in Laos’ stage where every sector means something and globally. Those products are well received by the World Bank hopes to bring expertise and add the global markets and have thus contributed to value to all of these sectors.” increased confidence of investors.”

SPONSORED SECTION | LAOS - 6 Powering Ahead: Turning Laos into ASEAN’s ‘Battery’ The power and electricity sector is arguably the The plant has an installed capacity of 1,070 single most important driver for the country’s growth MW, much more than could be absorbed locally. and development. Laos generation and transmission About 95 percent of power generated by NT2 is capacities have increased substantially in recent instead exported to Thailand. Managed under a years, supporting both domestic and foreign demand. 25-year concession agreement, the installation Blessed with abundant water resources, Laos is a cornerstone of the government’s long-term generates most of its electricity from hydropower development plans. installations. The country is estimated to have a total “The plant is expected to generate $2 billion in hydropower capacity of 26,000 megawatt (MW) along government revenue over 25 years of the concession the Mekong River and its tributaries. period. At the end of this period, in 2035, NT2 will be “We want to develop the hydropower potential as transferred to the government,” explains Hofmann. rapidly and responsibly as we can,” explains Viraphonh “This is the big story. Our mission is not just to Viravong, Vice Minister of Energy and Mines. “Today, produce electricity but also to develop the country.” we have an installed capacity of 6,000 MW. By 2020, we expect to reach an installed capacity of 10,000 MW. The Future of Power Generation And between 2020 and 2030, we want to add another The state-owned utility Electricité du Laos (EDL) is the 10,000 MW, the equivalent of 1,000 MW per year.” dominant force in Laos’ power industry. It owns and Total installed capacity has increased ten-fold over operates the country’s main generation, transmission the past decade, with more than forty hydropower and distribution assets and supplies electricity for stations currently in operation and more under way. domestic consumption. Since 2010, EDL Generation, a Viravong adds, “There are at least 20 to 25 hydropower publicly listed company, has been in charge of EDL’s sites currently under construction. This corresponds power plants and the growth of generation capacity. “We to an additional capacity of 4,000 to 5,000 MW.” started with a generation capacity of 300 MW. Our goal is Domestic demand for electricity is rising quickly, to reach 2,000 MW by 2020,” says Bounoum Syvanpheng, at a rate of 18 percent annually, and is expected former CEO of EDL Generation. “To do that we have to exceed 2,600 MW by 2020. This reflects the mobilized investments to buy other hydropower projects, current pace of industrial development in Laos to buy shares in projects implemented by independent as well as the success of a rural electrification power providers, and to build more hydropower stations program. An estimated 89 percent of households across the country.” have access to electricity today, compared to 50 EDL Generation has already managed to build percent of households twenty years ago. By 2020, the a portfolio that approaches its 2020 target. “We government expects to reach its target of providing now have twenty-six projects, producing a total of 95 percent of all households with electricity. about 1,400 MW. Provided that we can mobilize the Crucially, Laos has also become a major exporter necessary investment for these projects, we will be of electricity. About two thirds of electricity generated able to produce about 1,800 MW by 2018 or 2019,” in Laos is routinely exported to Thailand, Vietnam, says Syvanpheng. and , where demand is also on the rise. Moving forward, EDL Generation will not limit Foreign and private investors acting on these itself to hydropower. Syvanpheng further explains, opportunities have played a principal role in driving “For 2025, our goal is the diversification of our energy the expansion of Laos’ power sector. The country’s sources. We do not want to rely on water alone and landmark project, the $1.2 billion Nam Theun 2 are looking into sources such as wind, coal and solar. Hydroelectric Project (or NT2), has the backing of We have already received the concession from the 27 development partners and financial institutions, government for a 100 MW solar energy project and we including the World Bank Group and the Asian are in a study phase for a coal energy project.” Development Bank. Inaugurated in 2010, NT2 is the According to Syvanpheng, Laos is well prepared largest hydropower project in Laos to date. to take on a bigger role in the region. “We have “This project has been a real case study for the been working very hard to ensure that we can government of Laos,” says Frédéric Hofmann, CEO distribute electricity to neighboring countries, setting of the Nam Theun Power Company (NTPC). “NT2 is up stations, distribution lines, control centers, and an example for other such projects in Laos and in training our staff. I believe that by 2020, we will be able the region.” to truly become the ‘battery’ of ASEAN.” Local Leaders in the Power Industry The Vientiane-based Phonesack Group Co., Ltd. is a local industry leader in the power and electricity sector. The group was recently assigned the development of two projects with a combined capacity of 1,550 MW: the Nam Theun 1 hydroelectric power project with a generating capacity of 650 MW and a coal-fired power project with a generating capacity of 3 x 300 MW. “Phonesack Group was appointed as the sole owner of these projects. This differs from past projects that required foreign investment or multilateral collaboration between the state, private entities, and foreign institutions to fund the development,” explains Phonesack Vilaysack, Chairman of the Phonesack Group. “We have invested millions of dollars in engaging experts to carry out technical surveys and globally recognized consultants to perform a thorough study of these projects.” Vilaysack understands these projects as an important contribution to national development. “These two projects will be a source of stable revenues for the nation, and they will create job opportunities for technical staff, local experts and the Lao labor force, thereby enhancing the nation’s skills and employment in the hydroelectric and mining sectors,” he says. Thermal power plants, such as the one built by Phonesack Group, are still a relative novelty for Laos. But this is changing, given the country’s large reserves of anthracite and its desire to make power generation more stable, regardless of any fluctuations in water levels. The coal-fired Hongsa Power Plant, developed by an independent power producer and completed in 2016, is set to become Laos’s highest-capacity power plant, with a generation capacity of nearly 1,900 MW. Vilaysack sees potential for growth and investment in both the coal-fired power production and hydroelectric power production sectors as a means of providing stable power supply. Accordingly, he expects the company to engage in other similar projects following the immediate assignment. “After completion of the 3 x 300 MW coal- fired power plant in the next five years, we expect to expand by another 600 MW thereafter,” says Vilaysack. Phonesack Group is also mindful of the impact of these projects on surrounding areas and local communities. The coal-fired power project that is being developed by Phonesack Group will use state- of-the-art, environmentally-friendly technology. As Vilaysack explains, “We have invested in making the social and environmental impact assessment of these projects our first priority. It is a privilege that the government has recognized our project work as a model in terms of socio-economic development and sustainable environmental protection.” Still one of the biggest challenges for PTT Lao Still one of the biggest challenges for marketThe company has firm plans of growing its going toCompetition in the Lao fuel sector is not and a construction company. These are all advantages company. These and a construction describesour competitors,” have over that we a working with “We have also started Rattanavong. a refinery in Vientiane on building Chinese company our service stations planning to modernize and we are company.” and our transport Thai Ambitions PTTThailand’s owned subsidiary of a wholly Lao, PTT in Laos since 1993 servicingGroup, has been present As part of PTT Group, thethe retail fuel business. company in Thailand, PTT Laolargest oil and gas at the top of the market. “Wehas established itself yearLast stations. have twenty-seven gas currently 170 million liters, which iswe had sales of about for this year is about 220considerable. Our target ManagingPhongvutiprapant, Nisit says liters,” million we areDirector of PTT Lao. “In terms of market share, number three according to 2015 data.” into local is finding the right staff. “We invest a lot training and staff. We send them to Thailand for to provide from Thailand trainers here we bring on-the-job training.” plan andshare, also beyond its fuel business. “We Laos,” sayswe wish to become number two in ninetyhave planning to are Phongvutiprapant. “We will alsogas stations by 2020. In addition, PTT Lao non- its of and Lubricants PTT of presence the grow convenienceoil retail business. This includes our Jiffy that we planstores and Café Amazon coffee shops branchesto expand from currently thirty to seventy within the next five years.” let up any time soon.

LSFC is the leading fuel company in Laos inLSFC is the leading leadingits defend to on existing assets relies LSFC The Lao State Fuel Company (LSFC), a state-ownedThe Lao State Fuel Company

enterprise, works to guarantee that demand is metis demand that guarantee to works enterprise, with national development.and energy supply rises Senior Deputy ManagingKhamchanh Rattanavong, State Fuel Company says, “WeDirector of the Lao needs of the society and of theprovide fuel for the fuel to remote areassupply government. We also we make a profit or not.” regardless of whether 2015,“In environment. competitive increasingly an a profitwe had a turnover of $175 million and litersof $4.25 million. We sold about 260 million of about 23of fuel, representing a market share with hardpercent,” Rattanavong says. “We are faced there werecompetition in a small country. Before, companies.” only a few companies – now there are 25 “Wemodernization. more for plans also but position, laboratories,have facilities in every province, modern thethree hundred service stations throughout company,country, a modern truck fleet, a transport Laos’ booming economy is driving a growth in fuel economy is driving Laos’ booming per year. In 2015, at a rate of 10 percent consumption billion liters, following reached 1.4 fuel consumption construction the country’s numerous demand from ownership. In 2015, a steady rise in vehicle projects and were recorded in Laos, 1.7 million vehicles more than than in the previous year.which is 8.2 percent more Thirst for Fuel Drives Competition Drives for Fuel Thirst

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BCEL has won multiple awards, including the 2011has won multiple awards, BCEL In drivenlandscape financial the country’s evolving “The financial sector is a key engine for for engine key a is sector financial “The progress, social and growth economic the of achievement the fulfill helps it and policies.” development government’s Vathana Dalaloy, Bank of the Lao PDR Deputy Governor of the in educating the market and continues adapting itscontinues adapting the market and in educating smaller companies. more suitable for rules to be in Laos areexplains, “Many businesses Voravong securities exchange Joining the family businesses. But in our expansion big decision for them. market is a 35 at least 25 to the goal of registering plan, we have by 2020.” companies in the LSX Innovation in Banking on theOne of the first companies to be listed lepour Banque the was Exchange Securities Lao EstablishedCommerce Exterieur Lao Public (BCEL). 1989, BCELas a state-owned commercial bank in tocontributes “BCEL bank. leading country’s the is country,”the socio-economic development of the Managingsays Phoukhong Chanthachack, General toDirector of BCEL. “And we will continue contributing necessarygovernment goals by mobilizing the funds accessibilityto offer credits to society and by providing a strongto our customers.” The bank maintains branches andhundred network of more than one in ruralservice units across the country, especially tellerareas, and is a leader in the use of automatic andand mobile machines, deposit (ATMs), machines internet banking services. Bank of the Year award from Bankers Magazine, theBank of the Year award from Bankers Magazine, Banking2012 Wholesale Banking Award from Asian Innovativeand Finance Magazine and the 2013 Most Laos award from Global Banking andRetail Bank innovations bank’s the of Some Review. Finance allows that application an One, BCEL include automateto phones smart their use to customers bills, and the BCEL smart cardtransactions and to pay “Thetransportation. public for payment of solutions awards that we have received give recognition to the bank’s continuous development,” says Chanthachack. “This does not mean that the bank will now remain static; we will continue developing our technology and our human resources.” by regional financial integration and especially the ASEAN Banking Integration Framework (ABIF), BCEL will be exposed to more competition. But regional

The Lao Securities Exchange (LSX), a joint venture “This is what we are here for,” confirms Vanhkham Five companies are currently registered on the “Public confidence in the financial sector is high,is sector financial the in confidence “Public Lao PDRFor the near future, the Bank of the The financial sector is bank-based, with banks’The financial sector

“To further support financial sector development, Lao“To further support financial sector development, in 2010 withPDR established its first stock exchange to financethe purpose of raising long-term capital socio-economic development,” says Dalaloy. between BOL and the Korea Exchange, was established in 2010. The power and electricity company, EDL Generation, and the state-owned bank BCEL were the first companies to be listed on the exchange. Between 2010 and 2015, the LSX mobilized total funds of more than $700 million. Voravong, CEO of the Lao Securities Exchange. “The securities exchange market has contributed significantly to raising capital and funding to move the economy forward.” LSX, representing some of the largest companies in Laos. This number is expected to grow, as LSX invests Going Public assets accounting for more than 90 percent of theassets accounting for total assets of the to financial industry. According a these assets amounted to $12World Bank report, are now 42 commercial banksbillion in 2015. There commercialstate-owned of four consisting Laos, in banks, seven private banksbanks, three joint-venture banks.foreign of branches and subsidiaries 28 and means years recent in banks of foreign influx The branches in total assets hasthat the share of foreign held 26grown significantly. In 2015, foreign branches in 2013. percent of all assets, compared to 18 percent the endby which deposits, of level the by indicated as GDP,” saysof 2015 were equivalent to 53.34 percent of Bank of theVathana Dalaloy, Deputy Governor of the the bankingLao PDR (BOL). “Besides the expansion of non- sector, the Bank of the Lao PDR also promotes to increasebank financial institutions (NBFIs) in order ofAs areas. rural households in to access financial BOL.” 2015, there were 147 NBFIs supervised by focuses on the development of financial infrastructure, accountingincluding the modernization of payment and markets thatsystems, financial inclusion, and capital are supporting regional financial integration. Laos’ financial sector has been instrumental in instrumental sector has been Laos’ financial development. the country’s economic bankrolling financial sector has lending by the Significant thereby contributing activities, boosted economic previous national of the country’s to the success plan. development socio-economic Financing the Country’s Growth Country’s the Financing

SPONSORED SECTION | LAOS - 10 SPONSORED SECTION | LAOS - 11 integration will also bring potential benefits through economy,” he continues. “ICBC Vientiane Branch market expansion and a growing volume of cross- grows along with the economy and has developed very border financial and trading activities. fast. Since the start of the bank’s operations, its profit Chanthachack is confident about BCEL’s position. has increased by an average of 40 percent annually, in “We will cooperate and coordinate with other ASEAN some years reaching 100 percent.” banks to offer even better banking services for our In 2012 the Bank of the Lao PDR appointed ICBC customers. And we will also develop as a bank Vientiane Branch the sole renminbi (RMB)-clearing towards achieving international banking standards, bank in Laos, giving it the right to open RMB accounts moving towards Basel principles and a corporate for banks, enterprises and individuals in Laos and governance policy.” clear RMB transactions between Laos and China. The move replaced the need for cash settlements and Ever Stronger China-Laos Trade created the basis for a growth in RMB settlements The Industrial and Commercial Bank of China (ICBC), between the two countries. Vientiane Branch, is another increasingly active player ICBC is deeply involved in financing Laos’ long- in Laos’ banking sector. As China’s largest lender term development projects. Lu explains, “So far the – and the world’s largest bank by market value – it bank has focused on the construction sector. We opened its Lao branch in 2011 to service corporate think that infrastructure development will lead to and individual clients and to facilitate cooperation social development and empower the local economy. between the two countries. China is Laos’ second We have been working with the Ministry of Finance largest trading partner and its largest foreign on large projects related to modern agriculture, investor. Bilateral trade amounted to an impressive hydropower constructions, and other infrastructure $2.78 billion in 2015, while Chinese investments in projects.” Laos extend to currently 760 projects with a value of These are stepping stones in consolidating the about $6.7 billion. bank’s market position. “In accordance with the “We believe that the economic and political Lao regulatory system, we are permitted to have relations between Laos and China will be much closer only one physical location to provide services to our in the future. This will provide more opportunities for customers. With possible changes in legislation, we ICBC and other companies,” says Lu Jian, General have plans of expanding our business to the north Manager of ICBC Vientiane Branch. and to the south of the country. Our goal for the next “For the past five years we have tried our best five years is to fortify our current position in Laos and to be a part of the growth of this country and its become a leading bank in Laos with high profitability, SPONSORED SECTION | LAOS - 12

performance, and prestige.” bank and training, they have adapted to the bank’s The bank’s success in Laos is also based on culture at all levels and some have grown to become the quality of its local staff. “Human resources deputy managers in our departments. We have an management is a key factor for our development and excellent team!” we pay much attention to the personal development ICBC sees further regional integration as a of our employees,” says Lu, explaining that “We clear opportunity. “The role of Laos in the AEC will have a total of eighty-three employees, 80 percent become more important by the day. There are a lot of which are from Laos. Just four years ago, about of opportunities for investors in various sectors and 80 percent of the Lao employees knew little about we hope that we will promote all these sectors in the banking. However, after four years of working in our future,” says Lu. “I am very confident for the future.” Telecommunications Taking Off Laos successfully launched its first communications one of five telecommunications operators currently satellite last year in cooperation with China. The $258 active in Laos alongside Lao Telecom, ETL, Unitel, and million satellite project is expected to strengthen a Beeline. Sky Telecom, a former government service, telecommunications sector that is already booming is the youngest entry in the market. “Our company is and extend services to Laos’ rural areas. Hiem a special company. Unlike other telecommunications Phommachanh, the former Minister of Post and companies we are not only focused on profit, but also Telecommunications, explains, “Our communication focus on helping the people.” satellite will be in service in 2016, and we expect that Sky Telecom holds a unique position because it it will lead to an increase in telephone and internet owns and manages the country’s network of penetration, especially in remote areas.” underground fiber-optic cables. Dark fiber is Currently, 87 percent of the population has fixed the principal source of income for the company. and mobile telephone access. Internet usage is Saysongkham explains, “If someone wanted to lease estimated at about 21 percent but is likely to be higher optical fiber lines, they would have to come to us. considering access provided by 3G and 4G mobile For example, the satellite company comes to us to telecommunications technologies. “Our main focus is rent lines to merge their satellite with our fiber optic to turn Laos from a landlocked to a land-linked country network.” But Sky Telecom is also pushing for additional in the ICT sector,” says Phommachanh. “Foreign services. “We have been preparing many products, investors are welcome to help us in this process.” including an internet upgrade from traditional systems “Many people in Laos are poor and in order to to broadband, IMS (Internet Protocol Multimedia improve their situation they need to have access to Subsystem), IPTV (Internet Protocol Television), and information. This is where we come and help,” says 4G mobile,” says Saysongkham, concluding that the Khamkhith Saysongkham, General Director of the state- company is “open to everything.” Telecommunications owned operator, Sky Telecom State Company, which is in Laos is truly taking off.

SPONSORED SECTION | LAOS - 14 The Reward of Taking the Initiative When the Phongsavanh Group celebrated its 35th The group’s Phongsavanh Bank has proven to be anniversary earlier this year, it was presented with a similar game changer. When it was established the Order of National Development, a high-level in 2007, it broke new ground as the first privately- government award. No other private company in owned bank in Laos. “Before we operated in the Laos has quite the same standing and presence in banking sector, a lot of investors were not brave the country’s economy. Phongsavanh Group first enough to come to Laos. After we started operating, started as a company in the timber industry but has more than thirty banks started investing in Laos,” since evolved into a group of companies with a total recalls Phongsavanh. of 2,000 staff and a lead role in multiple sectors. “Right now there are about forty banks in Laos Some of the leading companies in the group include and they are growing fast. The competition has PetroTrade, Phongsavanh Bank, and Phongsavanh become very strong,” says Bounthanh Vongsoury, Telecom. Managing Director of Phongsavanh Bank, further “It is our policy to always try and start something detailing that “there are seven private banks in Laos new, something challenging, something difficult,” right now, of which we are number one, enjoying says Prof. Dr. Od Phongsavanh, Founder and great customer loyalty. Our market share is about President of the Phongsavanh Group, explaining 15-20 percent of the whole commercial banking the company’s strategy and growth. He draws a sector in Laos and we expect to grow our market connection between the group’s activities and vision, share by 3-5 percent every year.” and the country’s socio-economic development. Vongsoury is proud that Phongsavanh Bank has “Our driving force is to reduce poverty among our made itself a pillar for the country’s development. people. We work closely with the government and we “We offer deposit ability and lending to the economic help wherever we can.” sectors but mostly we focus on small and medium sized enterprises (SMEs) because we think that “We always try and start something SMEs are very important for the country and must new, something challenging, be supported. We also implement many projects to something difficult.” help the government reduce poverty in rural areas and we provide loans to low-income families so that they have the opportunity to invest in agricultural Prof. Dr. Od Phongsavanh, production and make a better living.” Founder and President of the Phongsavanh Group True to its policy of always starting something new, the Phongsavanh Group is also currently in PetroTrade, part of the Phongsavanh Group, the process of setting up the first life and non-life started from a similar premise. PetroTrade’s CEO, insurance company in Laos. “Insurance is one of the Chanthone Sitthixay, explains, “Back in 2008 when most important aspects for society. We will cover PetroTrade was formed, farmers in rural areas accidents, life insurance, health insurance as well bought petrol at very expensive prices, about five as big financial projects by the government and times higher than in city areas. We decided to form the private sector. We are also going to set up an this company to provide petrol at a lower cost to all association for insurance companies, as well as a people, especially to farmers. We believe that energy rescue team and ambulances,” says Od Phongsavanh. is the lifeblood of economic development.” Supported by -based advisors Mekong Starting from small-scale petrol stations in Group and Deloitte, the Phongsavanh Insurance rural areas, PetroTrade quickly grew into a nation- Company (APA) will become operational by the wide enterprise and the second largest petroleum beginning of next year. supplier in Laos. “We have about 120 stations Phongsavanh’s concern is to establish a secure across Laos and we are expanding by an additional environment for foreign investors: “We want to 30 stations this year. Our annual sales volume in make sure that investors can come to Laos and Laos is about 190 million liters. This is forecast find a professional and highly-equipped team of to increase by 40 percent this year, because we people to assist them in case of emergency.” And are also going to re-export to the region for the he is convinced that, with all parameters in place, first time,” says Sitthixay. “PetroTrade is the first more investors will want to come to Laos. “Laos company in Laos to bring oil not only from Thailand is an attractive place to invest because we have a and Vietnam but also from the Middle East and very good legislative system, a very stable political other parts of the world.” system, and a very strong financial sector.”

The success of Beerlao is no longer limited of Beerlao is The success role in society, LBC takes a Aware of its wider to the “Since the company owes its growth of different types of beverages and packaging and packaging types of beverages of different our Tigerhead Water recently refreshed styles. We of international number a introduced and packaging and Kronenbourg as Somersby Cider imports, such offer.” our market 1664, to improve to Laos. The has won several international to Laos. The beer globally. “Export appreciated awards and is now our business areas of of the fastest growing is one professional highly with working are we and markets where we are jointly partners in many beer,” imported premium a as Beerlao developing “We now export to over twenty says Phommachack. markets worldwide.” to social It contributes course of action. responsible in Laos to activities, and it was the first company system install a Carbon Monoxide Detector (CMD) dioxide to conserve energy and reduce its carbon emissions by as much as 40 percent. social support from Laos’ society, LBC considers in the responsibility both an obligation and a priority way it conducts its business,” says Phommachack. Lao culture, “We partner for the preservation of the the of preservation and protection the support balanced and a healthy and promote environment, lifestyle.”

Boasting two production facilities and modern Boasting two production facilities and “LBC focuses heavily on innovation in terms The success of LBC has made it become anbecome it made has LBC of success The

important part of the Lao economy. The Presidentimportant part of the Sounthone Company, Brewery Lao the of “LBC is the single largestPhommachack, says, government in terms of taxes,contributor to the Lao government to further drive thethereby enabling the development. We also estimatecountry’s economic in Laos are indirectly that over 35,000 people associatedemployed, as a result of LBC, in closely industries such as farming and distribution.” production machinery, LBC currently has an annual Beer is capacity of 210 million liters of beer. LBC also markets the company produces. not all under the Laos’ leading brand of drinking water drinks for Tigerhead brand, and it produces soft in PepsiCo. “From relatively humble beginnings drinks one number the today is LBC 1970s, the company in Laos,” says Phommachack. Anyone ordering a beer in Laos is likely to be served to likely is Laos in beer ordering a Anyone Brewery Company by the Lao a beer produced years of brewing more than forty (LBC). After 98 percent of the beer, LBC controls and selling includes three market. Its portfolio national beer brand, as well under the Beerlao types of beer and LaneXang brand the as another beer under locally-brewed Carlsberg. Getting a Taste of Laos of Taste a Getting

SPONSORED SECTION | LAOS - 16 SPONSORED SECTION | LAOS - 17 TK Group is always looking for new opportunities looking for new Group is always TK to investors. This is an open invitation expertise and highly skilled labour, but we don’t have highly skilled labour, expertise and in Laos.” enough yet market. “Our activities new entries into the and invites accommodate every and we try to are diversified describing Thammavong, says Laos,” in investor recent initiatives. “Last year wesome of the group’s to come and invest in Laos.approached U.S. investors the in companies with options franchise discussed We and we visited Microsoft tofood and beverage sector of establishing a data center inexplore the possibility real estate for the constructionLaos. We can also offer and shopping malls.” of apartments, hotels,

TK Support has since developed from a since developed from a TK Support has Today, the diversified Thatnakhone Thammavong, President and CEO ofThatnakhone Thammavong, the TK Group, was inspired by his experience abroadthe TK Group, was inspired TK Support. “I studiedto start his first company, for a few years and I saw theand lived in Singapore available. By establishing TKhigh level of technology andI had seen Laos what apply in Support, I wanted to in technology.” help the country advance offering small enterprise information technology hardware and software services into Laos’ leading IT solutions and service provider. The various companies TK Group developed of the in parallel to the original business, gradually adding to the group’s presence and role the “With economy. Lao the in help of the companies that we have created over the years, create to able been have we opportunities. job many We started with only a few employees in 2005, but today TK Group has more than 200 staff.” group includes a total of eight companies with activities in information technology and new media, mining, construction, trade, and electrical and mechanical challenge,The engineering. incompanies many by faced a developing economy, is not in finding the right opportunity but the right people. “Human resources are a big challenge as there is a shortagein Laos staff,”management skilled of says Thammavong. “To projects, large implement such as hydropower and other construction projects, we need The TK Group represents a new generation of generation new a represents Group TK The to the development that are contributing companies the opportunities as they are seizing of new industries in 2005, the Lao economy. Established of the growing enterprise to a majorgrew from a single TK Group in just 10 years. group of companies Laos’ New Breed of Entrepreneurs Breed New Laos’

“Over the past five years, the soccer-field soccer-field the years, five past the “Over “BRED is a cooperative bank and since its bank and since its “BRED is a cooperative to reach out to its BFL has been quick able to As a result, BFL expects to be “This is not just some kind of marketing Turning Leisure into Business Advertising, and Sign Printing, Theppanya a successful printing company that started its its to service a turned has 2000, in business employees and national passion for soccer into a business. Ever since providing its employees with a soccer field for after work entertainment, Theppanya found there was popular demand. business has been very successful,” says Vannared Panyavichith, Managing Director of Theppanya Premium Football Field. “We now have two soccer fields and in the future we want to open an academy professionally. play to learn can kids young that so The sports business has a big growth potential.” double its current 2.5 percent market share. share. double its current 2.5 percent market It already cooperates with the International facility Finance Corporation (IFC) for a financing to women entrepreneurs. that provides loans for And it joined the Global Banking Alliance Women’s Women, working towards a dedicated Market Program. Focus on Women toFocus on Market Share Double Franco-Lao (BFL) has spirit, the Banque In a similar key part a entrepreneurs for women made services was established bank The strategy. of its growth and BCEL between venture joint a as 2008, in of the French banking COFIBRED, a subsidiary competitive a In Populaire. Banque BRED group on SME development. market, BFL focuses dedicated to financing SMEs,” beginning has been Executive Managing says Guillaume Perdon, this is really what we are here Director of BFL. “So local SMEs.” to do: we want to finance network a country-wide customers by establishing banking in electronic investing and branches of as a services. Increasingly, it focuses on women “One distinct market segment. Perdon explains, a banking of our main projects this year is to build of For us this is a matter solution for women SMEs. group differentiation, the idea of reaching a target that other banks have not tried to approach.” we will activity; these will be real tools that institutions develop in partnership with others SMEs,” and subcontractors to support women planned for says Perdon. “The official launch is this year.”

Coca-Cola is careful to uphold its standards as Coca-Cola is careful to uphold its standards Griffin suggests another global Coca-Cola Coca-Cola – which is no stranger to international stranger to international – which is no Coca-Cola

expansion – has been in the country for less than expansion – has been its first bottling plant in four years and opened left in countries very few “There are 2015. Laos in does not have a local the world where Coca-Cola to a country that is a total operation. To come Coca-Cola is quite unique,” greenfield project for Manager of Lao Coca- says Mark Griffin, General Cola Bottling Company. “Globally, a responsible company. Griffin explains, we have made a commitment to be water-neutral return to by 2020. This means that we will water equal communities and nature an amount of and their to what we use in our finished beverages our in integrated have we example, For production. collection and harvesting water rain a plant bottling almost operate to us allows that system storage seasons.” entirely on rain water during the rainy to apply “We are helping local village communities with village the same principle. We have worked large authorities in five local communities providing homes. We rain water storage jars to over 1,000 couple of will issue another 1,000 jars over the next water.” years to help local communities conserve program. initiative being applied to Laos, the 5by20 aims to empower the company means that “5by20 by 2020. five million women entrepreneurs globally aimed at establishing It is a program specifically 5by20 own our have will We business. in women by entrepreneurs women 5,000 promoting Laos, in 2020. We will partner with local NGOs and banks to provide capital and identify business opportunities and launch this initiative by the end of 2016.” For many investors and businesses, Laos still Laos still investors and businesses, For many Companies willing uncharted territory. represents Laos’ high-growth the opportunities of to seize to enter the market must be prepared economy local needs and movers, navigating as first with local and building connections requirements communities. The Intelligent Way to Market to Way Intelligent The

SPONSORED SECTION | LAOS - 18 SPONSORED SECTION | LAOS - 19 Towards a World-Class Destination Tourism is an important growth sector for Laos. For “The hotel is adding an international convention and the past ten years, the number of tourists visiting the event center that will accommodate eighteen meeting country has increased at an impressive average annual rooms of variable size plus a grand ballroom that is rate of 18 percent. In 2015, Laos recorded 4.3 million able to receive up to 2,300 guests. This development arrivals and revenue from tourism of $670 million. facilitates increasing demand for meeting rooms Most visitors travel to Laos from neighboring countries; from industry and commerce and the ASEAN Summit however their stay in the country is still quite short, meetings held this year. With this extension, the hotel compared to other countries in the region. will be the place to go.” Seeing tourism’s potential, the government is The Krittaphong Group, which built and focused on developing its many tourism sites, improving currently owns the Landmark Hotel, has bigger infrastructure and transportation, and encouraging plans. As Boulapha Santikhongkha, Chairman of private investment in the sector. Popular destinations the Krittaphong Group, says, “We will create the in Laos include the ancient town of Luang Prabang, a Landmark Group. We have several other hotels UNESCO World Heritage site; the sacred That Luang that will be added to the group, with the Landmark monument; and the in Vientiane. Mekong Riverside Hotel being its flagship property. The Landmark Mekong Riverside Hotel has opened Our goal is to become the leading group of hotels the door to a new kind of tourism, bridging business and in Laos within the next five years and possibly also leisure. Located along the Mekong River promenade in start expanding to neighboring countries.” The group Laos’ charming capital, Vientiane, the luxury hotel aligns itself closely with the country’s development opened in time for the 9th Asia-Europe Meeting (ASEM) needs. “We know what the government needs and Summit in 2012. “With 188 rooms and suites and where it wants to go,” explains Santikhongkha. “We go beautiful gardens, this is one of the top luxury hotels along with the government’s strategy and vision. As a in the country. Our hotel is an urban resort that can Chinese idiom says: ‘When water rises, the ball rises as accommodate both tourism and business guests,” well’. If the country grows, we are also growing.” explains Mickael Frangin, Group General Manager of This is true for most businesses in Laos. As the the Landmark Mekong Riverside Hotel. country is moving up the rungs of development, Responding to growing demand, the hotel is set for opportunities will naturally abound. further expansion. Produced by: www.worldprofilegroup.com “The Lao PDR is focusing all of its efforts on poverty reduction, infrastructure development, and building an economic foundation for industrialization and modernization, in order to graduate the country from the ‘least developed country’ status.” Thongloun Sisoulith, Prime Minister of the Lao PDR

“The Lao PDR has built mutually beneficial relations with all neighboring countries to ensure a regional environment of peace, stability, equality, and trust. This is the foundation for socio-economic development.” Thongsing Thammavong, former Prime Minister

“We adopted a development strategy to promote diversification that is built on three pillars: enhancing enterprise competitiveness, creating a business-friendly environment, and deepening economic integration.” Khemmani Pholsena, Minister of Industry and Commerce

“The Trade and Investment Framework Agreement paves the way for future growth in trade and investment between the two countries.” Mai Sayavongs, Ambassador of the Lao PDR to the USA “We have a long-term vision of Laos becoming the in this part of the world.” Sayakane Sisouvong, Ambassador of the Lao PDR to the UK, Ireland and Iceland

“We want to create a single market and production base, a market which is fully integrated not only within the Asian world but also in the global economy.” Alounkeo Kittikhoun, Minister to the Prime Minister’s Office, and ASEAN Senior Officials Meetings (SOM) Leader for Laos

“For the country as a whole it is important to focus on education to ensure that the young people have the right skills to prosper in this new community.” Sandra Nicoll, Country Director of the Asian Development Bank, Lao PDR Resident Mission

“The country is at a stage where every sector means something and the World Bank hopes to bring expertise and add value to all of these sectors.” Sally Burningham, Country Manager Lao PDR, World Bank

“The objective of Special and Specific Economic Zones is to attract domestic and foreign investments; create a strong foundation for industrialization; contribute to GDP growth, technology transfer, and job creation; and increase government revenue.” Bouatha Khatthiya, Standing Vice Chair of the Lao National Committee for Special Economic Zones (NCSEZ) “We want to develop the hydropower potential as rapidly and responsibly as we can. Today, we have an installed capacity of 6,000 MW. By 2020, we expect to reach an installed capacity of 10,000 MW. And between 2020 and 2030, we want to add another 10,000 MW, the equivalent of 1,000 MW per year.” Viraphonh Viravong, Vice Minister of Energy and Mines

“The Nam Theun 2 Hydroelectric Project (or NT2) has been a real case study for the government of Laos. NT2 is an example for other such projects in Laos and in the region.” Frédéric Hofmann, CEO of the Nam Theun Power Company (NTPC)

“We have been working very hard to ensure that we can distribute electricity to neighboring countries, setting up stations, distribution lines, control centers, and training our staff. I believe that by 2020, we will be able to truly become the ‘battery’ of ASEAN.” Bounoum Syvanpheng, former CEO of EDL Generation

“The Nam Theun 1 hydroelectric power project with a generating capacity of 650 MW and a coal- fired power project with a generating capacity of 3 x 300 MW will be a source of stable revenues for the nation, and they will create job opportunities for technical staff, local experts and the Lao labor force, thereby enhancing the nation’s skills and employment in the hydroelectric and mining sectors.” Phonesack Vilaysack, Chairman of the Phonesack Group

“We provide fuel for the needs of the society and of the government. We also supply fuel to remote areas regardless of whether we make a profit or not.” Khamchanh Rattanavong, Senior Deputy Managing Director of the Lao State Fuel Company “We plan and we wish to become number two in Laos. We are planning to have ninety gas stations by 2020. In addition, PTT Lao will also grow the presence of PTT Lubricants and of its non-oil retail business.” Nisit Phongvutiprapant, Managing Director of PTT Lao

“The financial sector is a key engine for economic growth and social progress, and it helps fulfill the achievement of the government’s development policies.” Vathana Dalaloy, Deputy Governor of the Bank of the Lao PDR

“The securities exchange market has contributed significantly to raising capital and funding to move the economy forward.” Vanhkham Voravong, CEO of the Lao Securities Exchange

“BCEL contributes to the socio-economic development of the country. And we will continue contributing to government goals by mobilizing the funds necessary to offer credits to society and by providing accessibility to our customers.” Phoukhong Chanthachack, General Managing Director of the Banque pour le Commerce Exterieur Lao Public (BCEL)

“We believe that the economic and political relations between Laos and China will be much closer in the future. This will provide more opportunities for ICBC and other companies.” Lu Jian, General Manager of the Industrial and Commercial Bank of China (ICBC), Vientiane Branch “Our main focus is to turn Laos from a landlocked to a land-linked country in the ICT sector. Foreign investors are welcome to help us in this process.” Hiem Phommachanh, former Minister of Post and Telecommunications

“Our company is a special company. Unlike other telecommunication companies we are not only focused on profit, but also on helping the people.” Khamkhith Saysongkham, General Director of Sky Telecom State Company

“Laos is an attractive place to invest because we have a very good legislative system, a very stable political system, and a very strong financial sector.” Prof. Dr. Od Phongsavanh, Founder and President of the Phongsavanh Group

“We decided to form this company to provide petrol at a lower cost to all people, especially to farmers. We believe that energy is the lifeblood of economic development.” Chanthone Sitthixay, CEO of PetroTrade

“There are seven private banks in Laos right now, of which we are number one, enjoying great customer loyalty. Our market share is about 15-20 percent of the whole commercial banking sector in Laos and we expect to grow our market share by 3-5 percent every year.” Bounthanh Vongsoury, Managing Director of Phongsavanh Bank

“LBC is the single largest contributor to the Lao government in terms of taxes, thereby enabling the government to further drive the country’s economic development. We also estimate that over 35,000 people in Laos are indirectly employed, as a result of LBC, in closely associated industries such as farming and distribution.” Sounthone Phommachack, President of the “With the help of the companies that we have created over the years, we have been able to create many job opportunities. We started with only a few employees in 2005, but today TK Group has more than 200 staff.” Thatnakhone Thammavong, President and CEO of the TK Group

“We have worked with village authorities in five local communities providing large rain water storage jars to over 1,000 homes. We will issue another 1,000 jars over the next couple of years to help local communities conserve water.” Mark Griffin, General Manager of Lao Coca-Cola Bottling Company

“One of our main projects this year is to build a banking solution for women SMEs. For us this is a matter of differentiation, the idea of reaching a target group that other banks have not tried to approach.” Guillaume Perdon, Executive Managing Director of the Banque Franco-Lao (BFL)

“Over the past five years, the soccer-field business has been very successful. We now have two soccer fields and in the future we want to open an academy so that young kids can learn to play professionally. The sports business has a big growth potential.” Vannared Panyavichith, Managing Director of Theppanya Premium Football Field

“With 188 rooms and suites and beautiful gardens, the Landmark Mekong Riverside Hotel is one of the top luxury hotels in the country. Our hotel is an urban resort that can accommodate both tourism and business guests.” Mickael Frangin, Group General Manager of the Landmark Mekong Riverside Hotel

“We know what the government needs and where it wants to go. We go along with the government’s strategy and vision. As a Chinese idiom says: ‘When water rises, the ball rises as well’. If the country grows, we are also growing.” Boulapha Santikhongkha, Chairman of the Krittaphong Group © Laos International Development Co.Ltd World Trade Center LAOS THE GREAT LEAP FORWARD

Published in NOVEMBER - DECEMBER 2016

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