Published on March 17, 2010

Country Report

Laos

Introduction

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 300 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 1988. Laos became a member of ASEAN in 1997.

Geography

Location: Southeastern Asia, northeast of Thailand, west of Vietnam

Geographic coordinates: 18 00 N, 105 00 E

Area:
total: 236,800 sq km
land: 230,800 sq km
water: 6,000 sq km

Area - comparative: slightly larger than Utah

Land boundaries:
total: 5,083 km
border countries: Burma 235 km, Cambodia 541 km, China 423 km, Thailand 1,754 km, Vietnam 2,130 km

Coastline: 0 km (landlocked)

Maritime claims: none (landlocked)

Climate: tropical monsoon; rainy season (May to November); dry season (December to April)

Terrain: mostly rugged mountains; some plains and plateaus

Elevation extremes:
lowest point: Mekong River 70 m
highest point: Phou Bia 2,817 m

Natural resources: timber, hydropower, gypsum, tin, gold, gemstones

Land use:
arable land: 4.01%
permanent crops: 0.34%
other: 95.65% (2005)

Irrigated land: 1,750 sq km (2003)

Total renewable water resources: 333.6 cu km (2003)

Freshwater withdrawal (domestic/industrial/agricultural):
total: 3 cu km/yr (4%/6%/90%)
per capita: 507 cu m/yr (2000)

Natural hazards: floods, droughts

Environment - current issues: unexploded ordnance; deforestation; soil erosion; most of the population does not have access to potable water

Environment - international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Law of the Sea, Ozone Layer Protection
signed, but not ratified: none of the selected agreements

Geography - note: landlocked; most of the country is mountainous and thickly forested; the Mekong River forms a large part of the western boundary with Thailand

People

Population: 6,834,345 (July 2009 est.)

Age structure:
0-14 years: 40.8% (male 1,399,674/female 1,386,526)
15-64 years: 56.2% (male 1,900,638/female 1,938,165)
65 years and over: 3.1% (male 90,144/female 119,198) (2009 est.)

Median age:
total: 19.3 years
male: 19 years
female: 19.6 years (2009 est.)

Population growth rate: 2.32% (2009 est.)

Birth rate: 33.96 births/1,000 population (2009 est.)

Death rate: 10.76 deaths/1,000 population (July 2009 est.)

Net migration rate: NA (2009 est.)

Urbanization:
urban population: 31% of total population (2008)
rate of urbanization: 5.6% annual rate of change (2005-10 est.)

Sex ratio:
at birth: 1.05 male(s)/female
under 15 years: 1.01 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and over: 0.76 male(s)/female
total population: 0.98 male(s)/female (2009 est.)

Infant mortality rate:
total: 77.76 deaths/1,000 live births
male: 86.97 deaths/1,000 live births
female: 68.11 deaths/1,000 live births (2009 est.)

Life expectancy at birth:
total population: 56.57 years
male: 54.45 years
female: 58.79 years (2009 est.)

Total fertility rate: 4.41 children born/woman (2009 est.)

HIV/AIDS - adult prevalence rate: 0.2% (2007 est.)

HIV/AIDS - people living with HIV/AIDS: 5,500 (2007 est.)

HIV/AIDS - deaths: fewer than 100 (2007 est.)

Major infectious diseases:
degree of risk: very high
food or waterborne diseases: bacterial and protozoal diarrhea, hepatitis A, and typhoid fever
vectorborne diseases: dengue fever and malaria
note: highly pathogenic H5N1 avian influenza has been identified in this country; it poses a negligible risk with extremely rare cases possible among US citizens who have close contact with birds (2008)(2009)

Nationality:
noun: Lao(s) or Laotian(s)
adjective: Lao or Laotian

Ethnic groups: Lao 55%, Khmou 11%, Hmong 8%, other (over 100 minor ethnic groups) 26% (2005 census)

Religions: Buddhist 67%, Christian 1.5%, other and unspecified 31.5% (2005 census)

Languages: Lao (official), French, English, and various ethnic languages

Literacy:
definition: age 15 and over can read and write
total population: 68.7%
male: 77%
female: 60.9% (2001 est.)

School life expectancy (primary to tertiary education):
total: 9 years
male: 10 years
female: 8 years (2006)

Education expenditures: 3% of GDP (2006)

Government

Country name:
conventional long form: Lao People's Democratic Republic
conventional short form: Laos
local long form: Sathalanalat Paxathipatai Paxaxon Lao
local short form: Pathet Lao (unofficial)

Government type: Communist state

Capital:
name: Vientiane (Viangchan)
geographic coordinates: 17 58 N, 102 36 E
time difference: UTC+7 (12 hours ahead of Washington, DC during Standard Time)

Administrative divisions: 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

Independence: 19 July 1949 (from France)

National holiday: Republic Day, 2 December (1975)

Constitution: promulgated 14 August 1991; amended in 2003

Legal system: based on traditional customs, French legal norms and procedures, and socialist practice; has not accepted compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Executive branch:
chief of state: President Lt. Gen. CHOUMMALI Saignason (since 8 June 2006); Vice President BOUN-GNANG Volachit (since 8 June 2006)
head of government: Prime Minister BOUASONE Bouphavanh (since 8 June 2006); Deputy Prime Ministers Maj. Gen. ASANG Laoli (since May 2002), Lt. Gen. DOUANGCHAI Phichit (since 8 June 2006), SOMSAVAT Lengsavat (since 26 February 1998), and THONGLOUN Sisoulit (since 27 March 2001)
cabinet: Ministers appointed by president, approved by National Assembly
elections: president and vice president elected by National Assembly for five-year terms; election last held 8 June 2006 (next to be held in 2011); prime minister nominated by president and elected by National Assembly for five-year term
election results: CHOUMMALI Saignason elected president; BOUN-GNANG Volachit elected vice president; percent of National Assembly vote - 100%; BOUASONE Bouphavanh elected prime minister; percent of National Assembly vote - 97%

Legislative branch:
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

Judicial branch: People's Supreme Court (the president of the People's Supreme Court is elected by the National Assembly on the recommendation of the National Assembly Standing Committee; the vice president of the People's Supreme Court and the judges are appointed by the National Assembly Standing Committee)

Political parties and leaders: Lao People's Revolutionary Party or LPRP [CHOUMMALI Saignason]; other parties proscribed

Political pressure groups and leaders: NA

International organization participation: 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)

Diplomatic representation in the US:
chief of mission: Ambassador PHIANE Philakone
chancery: 2222 S Street NW, Washington, DC 20008
telephone: [1] (202) 332-6416
FAX: [1] (202) 332-4923

Diplomatic representation from the US:
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

Flag description: three horizontal bands of red (top), blue (double width), and red with a large white disk centered in the blue band

Economy

Economy - overview: 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 from 1988-2008 except during the short-lived drop caused by the Asian financial crisis that began in 1997. Despite this high growth rate, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a rudimentary, but improving, road system, and limited external and internal telecommunications. Electricity is available in urban areas and in many rural districts. Subsistence agriculture, dominated by rice cultivation in lowland areas, accounts for about 40% of GDP and provides more than 70% of total employment. The government in FY08/09 received $560 million from international donors. Economic growth has reduced official poverty rates from 46% in 1992 to 26% in 2009. The economy has benefited from high foreign investment in hydropower, mining, and construction. Laos gained Normal Trade Relations status with the US in 2004, and is taking steps required to join the World Trade Organization, such as reforming import licensing. Related trade policy reforms will improve the business environment. On the fiscal side, Laos launched an effort to ensure the collection of taxes in 2009 as the global economic slowdown reduced revenues from mining projects. Simplified investment procedures and expanded bank credits for small farmers and small entrepreneurs will improve Lao's economic prospects. The government appears committed to raising the country's profile among investors. The World Bank has declared that Laos's goal of graduating from the UN Development Program's list of least-developed countries by 2020 is achievable. According Laotian officials, the 7th Socio-Economic Development Plan for 2011-2015 will outline efforts to achieve Millennium Development Goals.

GDP (purchasing power parity):
$14.61 billion (2009 est.)
note: data are in 2009 US dollars

GDP (official exchange rate): $5.721 billion (2009 est.)

GDP - real growth rate: 3% (2009 est.)

GDP - per capita (PPP):
$2,100 (2009 est.)
note: data are in 2009 US dollars

GDP - composition by sector:
agriculture: 39.2%
industry: 33.9%
services: 26.9% (2009 est.)

Labor force: 2.1 million (2006 est.)

Labor force - by occupation:
agriculture: 80%
industry and services: 20% (2005 est.)

Unemployment rate: 2.4% (2005 est.)

Population below poverty line: 26% (2009 est.)

Household income or consumption by percentage share:
lowest 10%: 3.4%
highest 10%: 28.5% (2002)

Distribution of family income - Gini index: 34.6 (2002)

Budget:
revenues: $937.1 million
expenditures: $1.123 billion (2009 est.)

Inflation rate (consumer prices): 2.6% (2009 est.)

Central bank discount rate: 7.67% (31 December 2008)

Commercial bank prime lending rate: 24% (31 December 2008)

Stock of money: $NA (31 December 2008)

Stock of quasi money: $NA (31 December 2008)

Stock of domestic credit: $NA (31 December 2008)

Agriculture - products: sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry

Industries: copper, tin, gold, and gypsum mining; timber, electric power, agricultural processing, construction, garments, cement, tourism

Industrial production growth rate: 2% (2009 est.)

Electricity - production: 3.075 billion kWh (2007 est.)

Electricity - consumption: 3.068 billion kWh (2007 est.)

Electricity - exports: 268 million kWh (2007 est.)

Electricity - imports: 475.9 million kWh (2007 est.)

Oil - production: 0 bbl/day (2008 est.)

Oil - consumption: 3,000 bbl/day (2008 est.)

Oil - exports: 0 bbl/day (2007 est.)

Oil - imports: 3,080 bbl/day (2007 est.)

Oil - proved reserves: 0 bbl (1 January 2009 est.)

Natural gas - production: 0 cu m (2008 est.)

Natural gas - consumption: 0 cu m (2008 est.)

Natural gas - exports: 0 cu m (2008 est.)

Natural gas - imports: 0 cu m (2008 est.)

Natural gas - proved reserves: 0 cu m (1 January 2009 est.)

Current account balance: -$23 million (2009 est.)

Exports: $1.104 billion (2009 est.)

Exports - commodities: wood products, coffee, electricity, tin, copper, gold

Exports - partners: Thailand 35.4%, Vietnam 15.5%, China 8.5% (2008)

Imports: $1.308 billion (2009 est.)

Imports - commodities: machinery and equipment, vehicles, fuel, consumer goods

Imports - partners: Thailand 68.3%, China 10.4%, Vietnam 5.8% (2008)

Reserves of foreign exchange and gold: $715 million (31 December 2009 est.)

Debt - external: $3.179 billion (2006)

Exchange rates: kips (LAK) per US dollar - 8,556.56 (2009), 8,760.69 (2008), 9,658 (2007), 10,235 (2006), 10,820 (2005)

Communications

Telephones - main lines in use: 97,600 (2008)

Telephones - mobile cellular: 1.822 million (2008)

Telephone system:
general assessment: service to general public is poor but improving; the government relies on a radiotelephone network to communicate with remote areas
domestic: multiple service providers; mobile cellular usage growing rapidly; combined fixed-line and mobile-cellular subscribership approaching 30 per 100 persons
international: country code - 856; satellite earth station - 1 Intersputnik (Indian Ocean region) and a second to be developed by China (2008)

Radio broadcast stations: AM 7, FM 14, shortwave 2 (2006)

Television broadcast stations: 7 (includes 1 station relaying Vietnam Television from Hanoi) (2006)

Internet country code: .la

Internet hosts: 1,661 (2009)

Internet users: 130,000 (2008)

Transportation

Airports: 41 (2009)

Airports - with paved runways:
total: 9
2,438 to 3,047 m: 2
1,524 to 2,437 m: 4
914 to 1,523 m: 3 (2009)

Airports - with unpaved runways:
total: 32
1,524 to 2,437 m: 2
914 to 1,523 m: 9
under 914 m: 21 (2009)

Pipelines: refined products 540 km (2009)

Roadways:
total: 29,811 km
paved: 4,010 km
unpaved: 25,801 km (2006)

Waterways:
4,600 km
note: primarily Mekong and tributaries; 2,900 additional km are intermittently navigable by craft drawing less than 0.5 m (2008)

Merchant marine:
total: 1 ship (1000 GRT or over) 2,370 GRT/3,110 DWT
by type: cargo 1 (2008)

Military

Military branches: Lao People's Armed Forces (LPAF): Lao People's Army (LPA; includes Riverine Force), Air Force (2009)

Military service age and obligation: 15 years of age for compulsory military service; minimum 18-month conscript service obligation (2006)

Manpower available for military service:
males age 16-49: 1,549,774
females age 16-49: 1,570,702 (2008 est.)

Manpower fit for military service:
males age 16-49: 1,023,205
females age 16-49: 1,085,197 (2009 est.)

Manpower reaching militarily significant age annually:
male: 75,310
female: 74,498 (2009 est.)

Military expenditures: 0.5% of GDP (2006)

Military - note: serving one of the world's least developed countries, the Lao People's Armed Forces (LPAF) is small, poorly funded, and ineffectively resourced; its mission focus is border and internal security, primarily in countering ethnic Hmong insurgent groups; together with the Lao People's Revolutionary Party and the government, the Lao People's Army (LPA) is the third pillar of state machinery, and as such is expected to suppress political and civil unrest and similar national emergencies, but the LPA also has upgraded skills to respond to avian influenza outbreaks; there is no perceived external threat to the state and the LPA maintains strong ties with the neighboring Vietnamese military (2008)

Transnational Issues

Disputes - international: Southeast Asian states have enhanced border surveillance to check the spread of avian flu; talks continue on completion of demarcation with Thailand but disputes remain over islands in the Mekong River; concern among Mekong Commission members that China's construction of dams on the Mekong River will affect water levels

Illicit drugs: estimated opium poppy cultivation in 2008 was 1,900 hectares, about a 73% increase from 2007; estimated potential opium production in 2008 more than tripled to 17 metric tons; unsubstantiated reports of domestic methamphetamine production; growing domestic methamphetamine problem (2007)