Agriculture
Agriculture, mostly subsistence rice farming, dominates the economy, employing an estimated 85% of the population and producing 51% of GDP. Domestic savings are low, forcing Laos to rely heavily on foreign assistance and concessional loans as investment sources for economic development. Agricultural products include sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry. In FY 1999, for example, foreign grants and loans accounted for more than 20% of GDP and more than 75% of public investment.
Tourism:
Tourism is the fastest growing industry in the economy and plays a vital role in the Lao economy. The government opened Laos to the world in the 1990s, and continues to be a popular destination amongst tourists. The major tourist destination is the world heritage site and ancient capital of
Luang Prabang.
Sub-Sector Best Prospects
The government is promoting Laos as a tourist destination through the program “Lao
Visit 2012”. Eco-tourism featuring the undeveloped Lao countryside is gaining in
popularity.
Architecture, Construction and Engineering Services
Laos has a severely underdeveloped infrastructure, including its road networks, and its
public water and electricity systems. Transportation projects will be high demand as the
country modernizes. There are also several large construction projects ongoing in the
capital of Vientiane, including office buildings and shopping malls.
Sub-Sector Best Prospects
Chinese, Vietnamese and Thai companies are the most active participants in
infrastructure development in Laos. The Lao government makes use of donor funding,
development banks and other financing methods to pay for infrastructure projects. Laos
is undergoing development of its airport and aviation system, including provincial
airports.
Laos is seeking to modernize and integrate its electrical grid in the next decade as it
seeks to meet its goal of supplying Thailand and Vietnam with electricity exports, while
at the same time providing electricity to 90 percent of the population by 2020. To do this
it will need to invest in modern power distribution and power management equipment
and expertise.
Pharmaceuticals, Medical Supplies and Medical Equipment
The health care system in Laos is very basic but developing. Maternal and child health
is an important priority for the GOL as it seeks to graduate from Least Developed
Country status by 2020. The Ministry of Health controls the import of medical
equipment, supplies and pharmaceuticals.
Sub-Sector Best Prospects
Refurbished medical equipment and low-cost pharmaceuticals
