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Country facts
| Capital city: |
Vientiane |
| Surface area: |
237,000 sq km |
| Population: |
6.4 million |
| Official language(s): |
Lao |
| Head of State: |
President HE Mr Choummaly Sayasone |
| Head of Government: |
Prime Minister HE Mr Bouasone Bouphavanh |
| Australian exports to Laos: |
A$14 million |
| Australian imports from Laos: |
A$1 million |
| Laos' principal export destinations: |
Thailand, Vietnam, China |
| Laos' principal import sources: |
Thailand, China, Vietnam |
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Economic activity in Laos can be adversely affected by weather conditions and the weaknesses of the agricultural infrastructure and production methods.
The Lao economy relies heavily on the agricultural sector (which accounts for just over half of GDP) and donor assistance.
Donor-funded activities contribute to a significant proportion of commercial opportunities in Laos, notably those funded by agencies such as the World Bank and the Asian Development Bank.
Opportunities for Australian suppliers exist in the education, health, energy, agriculture and infrastructure development sectors, ranging from advisory consultancies to tenders for supply of equipment. There are also several significant upcoming commercial projects in the hydroelectricity and mining sectors that offer opportunities to Australian companies.
There is a small but growing market for overseas education in Laos, and Australia is a market leader in this sector. AusAID provides 40 scholarships for tertiary level study in Australia annually.
For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.
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The Lao People’s Democratic Republic (Lao PDR) is a one-party communist state. The head of state and government is the President, General Khamtay Siphandone and the Prime Minister is Colonel Bounnhang Vorachit. The ruling Lao People's Revolutionary Party exerts control over most aspects of civil society.
Constitutionally-guaranteed freedom of assembly, religion and speech are not always evident. However, since 1986 the Lao People’s Revolutionary Party has introduced gradual economic liberalisation leading to the adoption of a new constitution that formalised the establishment of a market-oriented economy. The government is gradually relinquishing control over commercial activity through privatisation of state-owned enterprises and legislative reform.
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Trade relations and statistics
Australia is the seventh largest investor in Laos ranked by project costs on a cumulative basis, with 47 investment projects valued at US$43.55 million, since 1986. A bilateral agreement on the promotion and protection of investment between the two countries was signed in 1995. Aid assistance has also played a prominent part in this relationship and contributed largely to the positive Australian profile in Laos.
Thailand is one of Laos’ most important bilateral partners with strong trade and investment links. The Australian-funded ‘Friendship Bridge’, which opened in 1994, linking Thailand and Laos over the Mekong River has contributed to closer commercial and people-to-people links between the two countries. The relationship with Vietnam is Laos’ most important bilateral political link cemented by the 1977 Treaty of Friendship and Cooperation.
Laos joined the Association of South East Asian Nations (ASEAN) in 1997. Laos is also a member of the ASEAN Regional Forum and the Mekong River Commission and has applied to join the World Trade Organization.
The Lao Government is currently endeavouring to stimulate growth in domestic manufacturing capabilities and foreign investment in such activities is encouraged.
Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.
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