Political and Economic Stability

Since 2019, the situation of Covid-19 pandemic and its containment measures have affects economic in the country. Declining trade volumes and investors have been impacted on the country’s income as well as jobs. GDP growth of 3-4 percent over the past couple years. Nevertheless, comparing with neighbouring countries, Laos has seen as a low-cost economy and the population of working age (15-64) has been continuously expanding from 61.8 percent in 2015 to 62.4 in 2020 and will be 65.9 percent in 2030 which could supply labour intensive businesses, promoting a conducive environment for investment.   has been Laos has been enjoying political stability and high-level economic growth with Apart from that, the country also has abundant natural resources and low risk of natural disasters.

Strategic Location and Transportation

Laos is located in the heart of South East Asia, surrounded by fast-growing, export-oriented countries such as China, Thailand, Vietnam, Myanmar and Cambodia. Also, the country is located in the GMS (Greater Mekong Subregion), connected through the East-West Economic and North-South Economic corridors make it an ideal location for businesses. Apart from enjoying transportation benefits by sharing borders with the five countries, a new railway linked from Laos to China and ultimately to Singapore shall further provide great opportunities for cross-border trade and investment. SEZs are strategically located along the border areas and are in positioned to benefit from regional and global integration and are in position to benefit from regional and global integration.

Success Stories

Special Economic Zones as Foreign Direct Investment Destination in Laos
From 2016-2020, Lao SEZs attracted domestic and foreign investments for more than 1000 companies with total investment budget USD 23,51 billion and USD 4,57 billion registered capital. Most multinational enterprises (MNEs) in Lao SEZs are from China, Thailand, Japan, Malaysia and EU countries, investing in manufacturing, trading and service industry. Special Economic Zones in Lao PDR have the momentum to become an even stronger base for manufacturing, production, trade and investment in the near future.

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