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 Laos (2007)Laos (2008)
 LaosLaos
Administrative divisions 15 provinces (khoueng, singular and plural), 1 municipality* (kampheng nakhon, singular and plural); Attapu, Bokeo, Bolikhamxai, Champasak, Houaphan, Khammouan, Louangnamtha, Louangphrabang, Oudomxai, Phongsali, Salavan, Savannakhet, Viangchan (Vientiane)*, Viangchan, Xaignabouli, Xekong, Xiangkhoang 16 provinces (khoueng, singular and plural) and 1 capital city* (nakhon luang, singular and plural); Attapu, Bokeo, Bolikhamxai, Champasak, Houaphan, Khammouan, Louangnamtha, Louangphrabang, Oudomxai, Phongsali, Salavan, Savannakhet, Viangchan (Vientiane)*, Viangchan, Xaignabouli, Xekong, Xiangkhoang
Background Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th Century under King FA NGUM. For three hundred years Lan Xang included large parts of present-day Cambodia and Thailand, as well as all of what is now Laos. After centuries of gradual decline, Laos came under the control of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the Communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam. A gradual return to private enterprise and the liberalization of foreign investment laws began in 1986. Laos became a member of ASEAN in 1997. Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th Century under King FA NGUM. For three hundred years Lan Xang had influence reaching into present-day Cambodia and Thailand, as well as over all of what is now Laos. After centuries of gradual decline, Laos came under the domination of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the Communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam. A gradual return to private enterprise and the liberalization of foreign investment laws began in 1986. Laos became a member of ASEAN in 1997.
Budget revenues: $392.3 million


expenditures: $541.3 million (2006 est.)
revenues: $470.4 million


expenditures: $643.5 million (2007 est.)
Diplomatic representation from the US chief of mission: Ambassador Ravic R. HUSO


embassy: 19 Rue Bartholonie, That Dam Road, Vientiane


mailing address: American Embassy Vientiane, APO AP 96546


telephone: [856] 21-26-7000


FAX: [856] 21-26-7190
chief of mission: Ambassador Ravic R. HUSO


embassy: 19 Rue Bartholonie, That Dam, Vientiane


mailing address: American Embassy Vientiane, APO AP 96546


telephone: [856] 21-26-7000


FAX: [856] 21-26-7190
Economy - overview The government of Laos, one of the few remaining official Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2006 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a primitive infrastructure. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with possible support from Japan. Electricity is available in only a few urban areas. Subsistence agriculture, dominated by rice, accounts for about half of GDP and provides 80% of total employment. The economy will continue to benefit from aid by the IMF and other international sources and from new foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, will streamline the government's inefficient tax system. The government of Laos, one of the few remaining one-party Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2007 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a underdeveloped infrastructure, particularly in rural areas. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with support from Japan and China. Electricity is available in urban areas and in most rural districts. Subsistence agriculture, dominated by rice, accounts for about 40% of GDP and provides 80% of total employment. The economy will continue to benefit from aid from international donors and from foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, should help streamline the government's inefficient tax system.
Exchange rates kips per US dollar - 10,235 (2006), 10,820 (2005), 10,585.5 (2004), 10,569 (2003), 10,056.3 (2002) kips per US dollar - 9,658 (2007), 10,235 (2006), 10,820 (2005), 10,585.5 (2004), 10,569 (2003)
Exports NA bbl/day 0 bbl/day (2004)
Exports - commodities garments, wood products, coffee, electricity, tin wood products, coffee, electricity, tin, copper, gold
Exports - partners Thailand 41%, Vietnam 9.7%, China 4.1%, Malaysia 4% (2006) Thailand 42.1%, Vietnam 9.5%, China 4% (2006)
GDP - composition by sector agriculture: 42.7%


industry: 31%


services: 26.2% (2006 est.)
agriculture: 41.2%


industry: 32.5%


services: 26.3% (2007 est.)
GDP - real growth rate 8.3% (2006 est.) 7% (2007 est.)
Imports NA bbl/day 2,898 bbl/day (2004)
Imports - partners Thailand 68.8%, China 11.3%, Vietnam 5.5% (2006) Thailand 68.8%, China 11.3%, Vietnam 5.6% (2006)
Industrial production growth rate 15.7% (2006 est.) 12% (2007 est.)
Industries copper, tin, and gypsum mining; timber, electric power, agricultural processing, construction, garments, tourism, cement copper, tin, gold, and gypsum mining; timber, electric power, agricultural processing, construction, garments, tourism, cement
Inflation rate (consumer prices) 6.8% (2006 est.) 5% (2007 est.)
International organization participation ACCT, APT, ARF, AsDB, ASEAN, CP, EAS, FAO, G-77, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IPU, ITU, MIGA, NAM, OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO (observer) ACCT, ADB, APT, ARF, ASEAN, CP, EAS, FAO, G-77, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, Interpol, IOC, IPU, ISO (subscriber), ITU, MIGA, NAM, OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO (observer)
Legislative branch unicameral National Assembly (115 seats; members elected by popular vote to serve five-year terms)


elections: last held 30 April 2006 (next to be held in 2011)


election results: percent of vote by party - NA; seats by party - LPRP 113, independents 2
unicameral National Assembly (115 seats; members elected by popular vote from a list of candidates selected by the Lao People's Revolutionary Party to serve five-year terms)


elections: last held 30 April 2006 (next to be held in 2011)


election results: percent of vote by party - NA; seats by party - LPRP 113, independents 2
Military branches Lao People's Army (LPA; includes Riverine Force), Air Force Lao People's Armed Forces (LPAF): Lao People's Army (LPA; includes Riverine Force), Air Force (2008)
Pipelines refined products 540 km (2006) refined products 540 km (2007)
Political pressure groups and leaders noncommunist political groups proscribed; most opposition leaders fled the country in 1975 political parties and groups other than LPRP are proscribed
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