The Lao People's Democratic Repubilc Country Report

The Lao People’s Democratic Republic (Lao PDR) is the only landlocked country in the Association of Southeast Asian Nations (ASEAN). Located in the centre of the Indochina Peninsula, it borders five countries: China in the north, Viet Nam in the east, Cambodia in the south, and Thailand and Myanmar in the west. Lao PDR has a total area of 236,800 square kilometres (km2), about 70% of which is covered by mountains, and a population of 7.1 million as of 2019. The average population density is 30 persons per km2. Lao PDR comprises 18 provinces, with Vientiane as the capital. Since 1986, when Lao PDR changed its economic policy to an open-door policy, the economy has progressed and expanded rapidly. The gross domestic product (GDP) in 2019 increased by 5.2% from the previous year, to $18,492 million in 2015 constant prices, bringing per capita income to $2,579 (World Development Indicators, 2022). The economy has been changing gradually from agriculture-oriented activities to a wider range of activities, such as services and industry. For example, in 2019, services accounted for 42.3% of GDP, while agriculture only accounted for 15.2%. Industry accounted for 31.4%, and its share is expected to expand in the coming years due to large investments in the mineral and hydropower sectors.