Lao PDR embarked on an economic reform in 1990s and became a member of the World Trade Organization (WTO) in 2013. According to ASEAN in Figures 2020, Lao PDR has a mixed economy with the main contributors to the GDP are agriculture (14%), industry (35.9%), and services (39.9%).
About 80% of its population is employed in the agriculture sector, primarily small and subsistence farming, in comparison to only 1% employed in non-manufacturing industrial sector. Its exports are dominated by mineral products and electricity. Agriculture processing is considered a key industry in Lao PDR after mining and energy.
In 2021, the most recent year in which trade data is available, Laos’ bilateral trade was approximately $5.18 billion with Thailand ($2.18 billion in exports, $3 billion in imports), $3.47 billion with China ($2.22 billion in exports, $1.25 billion in imports), and $1.71 billion with Vietnam ($1.22 billion in exports, $499 million in imports).
Investing in Lao PDR is slow due to significant infrastructure gaps. Investment opportunities in the Lao PDR manufacturing sector may increase in the future as a result of the government measures to diversify its economy and to become less reliant on natural resource-intensive sectors.
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