“Working together to promote mutual understanding
and cooperation”.
Phiane PHILAKONE
Ambassador of the Lao P.D.R
to the U.S.A
Embassy of the Lao PDR to the U .S.A
2222 S Street NW
Washington, D.C. 20008
Tel: (202) 332 6416
Fax: (202) 332 4923
E-mail: [email protected]
February 10, 2010
“Sabaidee”… The Lao customary greeting word
WEBSITES
Map of the Lao PDR
Ministry of foreign Affairs Ministry
Industry and Commercial Ministry
Ministry of Information and Cultural
Foreign Investment Management Office
National Assembly
National Tourism Authority of Lao PDR
http://www.mofa.gov.la
http://www.moc.gov.la
http://www.mic.gov.la
http://www.invest.laopdr.org
http://www.na.gov.la
Lao National Chamber of Commerce & Industry
http://www.Laocci.com
http://www.nuol.edu.la
http://www.stea.gov.la
http://www.nsc.gov.la
http://www.lnmc.gov.la/mekong
Lao National University
Science Technology & Environment Agency
Lao National Statistic Center
Lao National Mekong Committee
Lao Customs Office
Vientiane Times Newspaper
Lao News Agency
Lao Hotel Group
Lao Airline
National Tourism Authority of Lao PDR
http://www.mekongcenter.com
http://www.laocustoms.laopdr.net
http://www.vientianetimes.org.la
http://www.kpl.net.la
http://www.laohotelgroup.org
http://www.laoairlines.com
http://www.tourismlaos.gov.la
http://www.mekongcenter.com
http:// www.visit-mekong.com/laos
http://www.ecotourismlaos.com
ADB
http://www.adb.org/Lao PDR
Other Incentives
- Investment term is up to 75 years
- Freedom to expatriate their earning back home or to third
countries
- Right to employ foreign expatriates (not exceed 10% of
the enterprise’s labor)
- Personal income tax at a flat rate of 10%
Population indicators
Survey fiscal years
2006-2007
1.
2.
3.
4.
5.
Total population :
Density (person per sq.km):
Annual growth rate :
Fertility rate (birth per woman):
Life expectancy at birth:
i. - Female :
ii- Male :
6. Access to safe water
( % of total population) :
7. Adult literacy rate :
( Age 15 and above)
(% of total population)
8. Per capita GDP (US dollars) :
Survey fiscal years
2007-2008
5.8 million
24.5
2.4%
4.3
5.9 million
25
2.0
4.1
64.5
60.0
65.0
61.0
70.8
87.6
72.0
76.0
678
728
Lao PDR: a quick look at the country
Location:
landlocked country bordered by China, Vietnam,
Cambodia, Thailand and Myanmar.
Area:
236,800 square Kilometers.
Climate :
Tropical with rainy season from May to October.
Population:
5.9 million.
Density:
25 people per square kilometer.
Religion:
Buddhism (Theravada Buddhism).
Language:
Lao (English is widely understood in the cities)
Capital:
Vientiane
Major cities: - Vientiane
- Savannakhet
- Pakse
- Luang Prabang
Main touristic sites:
- Luangphabang, the charm and the serenity of the world heritage
“an alive museum of the past ”.
- Plain of Jars (Xiengkhouang) the 3,000 years stone jars.
- That Luang Stupa and Patouxay (triumphal arch) Vientiane City.
- Ruins of Wat Phu Champassak temple built from 6th to 8th
centuries placed under the UNESCO’s list of the world heritage
conservation and Khonephapheng Waterfall, the biggest waterfall
of the Mekong river in Champassak province.
National currency:
Kip
Time :
GMT+7
IDD: Country code: 856
Area code:
21 Vientiane
41 Savannakhet city
31 Pakse city
71 Luang Prabang city
Patouxay (Vientiane City)
Lao PDR : Location, Land and Climate
I. Location, Land and Climate
1. Location:
the Lao PDR is a landlocked country located between
13˚ 54' to 22˚ 3' north latitude and
100˚ 05' to 107˚ 35' east longitude.
Lying from north to south, the longest
part of the country is about 1,800 Km,
the widest part 500 Km and the nearest
140 Km. The Lao PDR has an eastern
border with the Socialist Republic of
Vietnam, a western border with the
Kingdom of Thailand, a southern border
with the Kingdom of Cambodia, a northern border with the People’s
Republic of China and northwestern border with the Union of Myanmar.
2. Land: The Lao PDR has a total land
area of 236,800 square kilometers of
which 70% are covered with mountains
and high plateaus. The Lao land is
colored with diversified range of
landscapes: mountains, high plateaus,
jungles, rainforest, caves, cascading
waterfalls, rapid rivers, plains and
valleys.
The northern area is dominated by high mountains measuring an
average of 1,500 meters above the sea level. The highest peak is “Phou
Bia”, 2,800 meters high in Xieng Khouang province. The plain region
(Center and South part of the country) consists of large and small plain
lands scattered along the Mekong river and its tributaries. The Mekong
river flows windingly through the Lao territory from North to South for
1,898 Km.
Khonephapheng and Liphi, the wonderful Mekong river waterfalls
located in the charming Southern part of the Lao PDR are biggest
waterfalls in the Southeast Asia. The Lao PDR has a fertile soil and
abundant mineral deposits such as tin, gold, iron, silver, sulphur and
(3) Foreign direct investment (FDI) =
Fiscal year 2006-2007
(million US dollars)
- Value of approves projects =
1,136.9
- FDI inflow (through banking sector) = 766.0
(4.) Average inflation =
4.1%
5. Foreign investment policies
The new investment law of the Lao PDR was adopted in 2004.
Here is a summary of this law.
(DDFI Lao PDR newsletter march 2005)
Law on the promotion of Foreign Investment in the Lao PDR (2004)
Form of FDI
- 3 forms of FDI
a). Business Cooperation by contract;
b). A joint venture with one or more domestic Lao
investors (Foreign equity should not be less than 30% of total
investment capital); or
c). A 100% foreign-owned enterprise
- 0% of import duties on production vehicles, machinery,
equipment and raw materials
- No export duties on finished products;
- Profit tax is classified into 3 groups: 20%, 15% and 10%
and profit tax exemption is offered for a certain period depending on
activities, investment areas and size of investment.
1. Zone one: (area with no economic information
infrastructures)
- 7 years profit tax exemption
- There after a profit tax of 10%
2. Zone two (areas with certain level of economic
infrastructures)
- 5 years profit tax exemption
- 3 years profit tax of 7.5%
- There after a profit tax of 15%
3. Zone three (areas with good infrastructures)
- 2 years profit tax exemption
- 2 years profit tax of 10 %
- Thereafter a profit of 20%
b. from a command economy to a more market oriented economy with
the introduction of a process of economic reform
called the “New
Economic Mechanism” or NEM in 1986. The
goal of the NEM
are:
i.
To implement a progressive transition from subsistence
based, rural and natural economy to a production and
services economy.
ii. To reduce poverty and upgrade the standard of life of the
population.
iii. To protect the environment by the cessation of shifting
cultivation and the preservation of the forest and
iv. To adopt a series of strategies to attract foreign
investment, promote exports and tourism and integrate
the Lao economy to its ASEAN partners.
3. Industrialization:
The country is beginning to move towards industrialization such as having
hydropower for exports, gold mining industries, cement plants and small
scale processing factories.
Fiscal years
4. Basic Economic Indicators: Fiscal years
2006-2007
2007-2008(Est.)
(1.) Annual growth rate:
- Total GDP
8%
8%
- Agriculture
2.8%
3.0%
- Industry
15.7%
15.8%
- Service
7.4%
7.0%
- GDP per Capita
678
728
(2) Trade balance (million dollars)
61.0
- 163.0
- Exports:
977.0
634.0
- Import
916.0
796.9
- Main export products:
- Electricity
- Gold
- Other mining products
- Garments
- Coffee
- Timber and forest products
- Agricultural products
- Handicrafts
(Gold from Xepon)
sapphires. The land is still covered with 47% (about 11.17 million
hectares) of natural tropical forest and sanctuaries of tropical flora and
fauna. The extremely rare animal called Saola Ox, a breed of deer
antelope recently discovered in Vietnam
inhabits the eastern border region of the
Lao PDR. In the Lao southern border
with Cambodia, the river dolphin
(Irrawaddy dolphin) inhabits the
Mekong River.
The Mekong river and its
tributaries in the Lao territory are big
potential hydropower energy resources.
This abundant water resource can
supply fresh water to the Lao PDR
with 66,000 cubic meters per capita
per year. The main user of water is the
agriculture sector (about 80%).
Saola Ox
(from www.visit-laos.com)
3. Climate: The Lao PDR has
tropical climate. Its weather is
influenced by tropical monsoons
but protected by the mountain
chains in he East (border with
Vietnam), it is not exposed to
typhoons originating from the
Pacific Ocean and the South China
Sea.
The Lao PDR has two
main seasons, the rainy season
from May to October and the dry
season from November to April. Also at the beginning of the dry season,
the Lao DDR has a short cool season from November to January. The
highland zone (Northern part of the country) is cooler than the plain
zone(Central and Southern part). The average low temperature in the
highland area during the cool season ranges from 10-14°C and the average
low temperature in the plain area during this time is 18-20°C. The average
high temperature during the hot season is 29-35°C. April- May are the
hottest months of the year. During rainy season, the
weather is hot and humid but the temperature is mildened by the
windy rains. The annual average rainfalls is about 2,000 - 2,500
millimeters.
The National Flower
Box: 1
The “Dok Champa” (Plumeria) is the national flower of Lao
PDR. The waxy flower with a sweet scent can be found in many
colors: red, yellow, pink and multiple pastels. For the Lao people,
Dok Champa represents sincerity and joy in life. The flower is
often used as a decoration in ceremonies or made into a garland to
welcoming guests. The Dok Champa blooms everyday and lasts a
long time. The trees are planted throughout the country and in
particular, can be seen near the monastic areas.
Lao PDR: Economy
V. Economy.
1. Potentials for development.
The Lao PDR has a lot potentials for economic development which
include:
- Land for agriculture and plantations;
- Forest and water resources;
- Abundance of mineral resources;
- Tourist destinations.
One third of the land is suitable for agriculture, livestocks and tree
plantations for industrial outputs.
Many projects have been adopted by the Lao government to promote
investments in the agro-base products and wood-bases products.
Two third of land are forested and mountainous. The Lao PDR has in its
territory more than 13 tributaries that join de Mekong river. In the
estimation of the country’s water resources, the water potentials of the Lao
PDR have the capacity of hydroelectricity production of more than 17,000
megawatts with more than 30 dams construction projects around the
country.
Energy is regarded by the Lao
Government as major economic
development objectives that will
make the Lao PDR the center of
electricity export in South East Asia
in the 21st Century.
The Lao PDR is a country rich in
culture and beauty and tourism is
one
of
the
potentials
for
development of the country. In
recent years, tourism has grown rapidly and it is the sources of
employment for many Lao People.
2. Economic development policies:
Since its foundation 30 years ago, the Lao PDR has undergone two major
transformations in the economic environment:
a. from the post-liberation situation to a command economy,
The National Anthem
The National Anthem of the Lao People's Democratic Republic is
“ Xat Lao ”
Lao PDR: People and Culture
II. People and Culture
The Lao PDR is a home of multi-ethnic people and multi-cultural society.
It has long history of rich variety of cultures and customs.
1. People
The Lao PDR is composed of 49 groups :
The 49 ethnic groups speak different dialects which consist of 4 main
linguistic families:
 Lao
- Tai family.
 Mone
- Khmer family.
 Tibeto
- Chinese family.
 Hmong
- Loumien family.
2. Culture
The Lao multi- ethnic people have their own civilization since the
beginning of their existence with regards to their mode of practice of the
agriculture, their lifestyle, their art and their dialects. The Lao multi ethnic
groups practice different customs which co-exist and complete with each
other.
Religion: The original belief of the Lao multi-ethnic people was animism
which was later influenced by Indian culture. The Brahmanism came next
and followed by the Buddhism. Today about 65% of the Lao people are
Hinayana Buddhists, though animism continues to co-exist with
Buddhism.
Language: Lao language is the national language. Except for those
influenced by Pali or Sanskrit ( Indian origin), the Lao national language
is a monosyllable based dialect and the Lao letters are derived from Pali
characters.
Festival in Lao PDR
January 1
January 20
February
New Year ( International New Year Day)
Lao people’s Army Day
Wat Phu Festival (the Wat Phu ruin located in
Champassak was built from 6th to 8th centuries)
March 8
Women’s Day
March 22
Lao People’s Revolutionary Party Day
April 13-15
Lao's New Year "Pimai". The Lao people
celebrate their “Pimai” or New Year on the 5th
month of the Lao lunar calendar year (April 13-15)
- During the three days of “Pimai” people throw
buckets of water to each other in
order to invite fertile rains, the
source of abundance and
happiness. The reasons for
celebrating “Pimai ” on the 5th
month instead of celebrating it
during the first month are:
(1)The first month (December)
is the cool season, during this
Boun Bang Fai (Rocket Festival)
time the day is shorter than the night.
b. The Government: the Prime-Minister and his cabinet are
in charge of the execution of the day to day Government
duties. The government is composed of the PrimeMinister, the deputies Prime-Ministers and Ministers.
(3) The Judicial: The judicial of the Lao PDR is composed of the
Lao People’s Supreme Court, Appeal Courts and the 1st instance
courts (local courts).
Box: 4
Fundamental rights and liberties of the Lao people (constitution 1991)
- Right to education
- Right to religion belief
- Right to entitlement to vote (from 18 years of age onward)
- Right to stand for election (from 21 years of age onward)
Both men and women are equal:
- politically
- economically
- culturally
- socially
and have equal opportunities for employment: both men and women
have the rights to choose one’s own religion, the right and freedom to
express one’s opinion, the right of association and protest under the
law.
Foreign policies
The objective of the Lao foreign policies focus on peace, independence,
friendship and cooperation.
The Lao PDR became a full member of ASEAN in 1997. The Lao PDR
regional development cooperation includes transport, power transmission,
telecommunication, HIV/AIDS and other disease prevention and
prevention of human and drug trafficking.
Hoping for long life, the Lao people celebrate “Pimai” during the 5th
month where the day is longer.
(2) April or the 5th month of the Lao lunar calendar year marks the
end of the dry season and the beginning of the rainy season in the Lao
PDR.
Celebrating “Pimai” at this time is also to welcome the new rainy
season.
Lao PDR: Administration
IV. Political Structure
The National Flag
The National Emblem
May 1
May
May
(The National Flag of the Lao PDR
is a dark blue background with
red borders and a white moon).
The political structure of the Lao PDR includes the Lao People’s
Revolutionary Party, the state organizations and the Lao mass
organizations. The Lao People’s Revolutionary Party is a real and strong
Lao political authority of the country. Based on its constitution of 1991,
the state organizations of the Lao PDR are composed of :
(1) The legislative:
The legislative of the Lao PDR is a unicameral congress “
National Assembly ”. The members of the Lao National assembly
directly elected for five years term of office by the people.
The National Assembly elects or removes the President of
Republic and approves the nomination of the Prime Minister and
cabinet.
the
are
the
his
(2) The Executive:
a. The President of the Republic: the President of the Republic
elected for five years term of office is the head of the State.
The President is assisted by a Vice- President.
International Labor Day
Visakha Puja Festival (Buddhist festival)
Boun Bang Fai (Rocket Festival): animist
tradition with wild dances merry-making and
firing of bamboo rockets and wishing for
abundance of the forthcoming rainy season.
July
Khao Phansa festival (a Buddhist festival to
mark the beginning of the three months rainy
season retreat for the monks to stay in their
monasteries).
September/October Ock Phansa festival (a Buddhist festival , the
end of the three months rainy season retreat for
the monks).
September/ October Boat Racing festival (animist tradition: thanks
giving for the rivers spirits with a long-boat
racing competition).
November
That Luang festival (That Luang Stupa, a
Buddhist symbol located in Vientiane City).
December 2
Lao National Day
Between mid December - January Hmong New Year in Oudomxay,
Xieng Khouang, Luang Prabang
and Vientiane Province.
Some Lao Characteristic traditions:
The “ Baci ” ceremony
Spiritually
influenced
from
Brahmanism, the “ Baci ” is a very
popular and famous tradition in the
Lao PDR. It is organized for all
special occasions ( New Year
celebration, Welcome or Farewell
party, Birthday party, Wedding
ceremony etc…).
The organizers of the “Baci” tie
knotted cotton bracelet around
the wrists of the guests (or the persons concerned) and pray for good
health, happiness, success and prosperity.
The sticky rice:
The Lao traditional food is eaten with
sticky (glutinous) rice cook by steam
of boiled water prepared in a special
woven bamboo basket. The sticky
rice is eaten with the Lao famous dish
called Lap, a spiced and herbed salad
of grilled rare meat or fish almost
like the steak tartar of the western style cooking. The sticky rice is also
prepared in bamboo grilled and it is enjoyable to eat it with grilled
chicken.
followers to protect the Lao Independence.
5. A heavily U.S bombing campaign against the Lao people
The Lao territory was heavily bombed by the US air force during the
Indochina War (Vietnam War) and received more than two million tons of
bombs including the cluster bombs or bombies.
Today the International teams are still cleaning the terrain of unexploded
ordinances (UXO) particularly in the region of the province of Houaphan
and Xiengkhuang and the Lao people continue to suffer from the
consequences of this bombing campaign.
6. The rebirth of a nation
The end of the Indochina War (Vietnam War) in 1975 has conducted to the
founding of the Lao People’s Democratic Republic (Lao PDR). December
2nd 1975 marked the complete victory of the Lao people in their struggle
against the external aggression and a rebirth of the Lao unified nation.
Today the Lao people are enjoying peace, stability and freedom.
The “Khaen music” (Bamboo music instrument)
The famous and popular Lao
folk music is the “khaen music”.
This Lao bamboo made music
instrument comprises a double
row of bamboo- like reeds,
fitted in hardwood sound box
and it is a wind music
instrument.
Wat Phou site (from www.unescobkk.com)
3. A unified kingdom of “Lane Xang” 1353-1705
The “Lamvong”
Fa Ngum (1316-1357) was the first
King, who fought and succeeded in
unifying the Lao small independent
states into a single Kingdom called
“Lane Xang” the land of a million
elephants.
The successors of the king Fa
Ngum consolidated the territory and built many temples, monasteries and
developed Lane Xang into an important trading and cultural center. In
1560, King Saya Setthathirat moved the capital to Vientiane and
constructed Ho Phakeo temple and That Luang stupa. During the 16th
century, the country was torn by warring factions until in 1638, King
Souriyavongsa took control. His 57 years reign was considered the
nation`s golden age when its influence expanded as far as Yunnan
(Southern China), the Shan states, Northeastern Thailand and some areas
of Vietnam and Cambodia.
After his death there was a dynastic struggle that led to the break- up of the
Lane Xang kingdom into three independent states: Luang Prabang,
Vientiane, and Champassak.
4. A divided nation conquered by foreigners
Vientiane and Champassak kingdoms were conquered by Siam. Luang
Prabang was took weak and was unable to fight against the Siam for the
reunification of the country. When the French came and established a
colony in Indochina, Luang Prabang kingdom asked for French protection
in 1893. Facing with the French threat, the Siam withdrew from the
kingdoms of Vientiane and Champassak. Then all of three Kingdoms
Luang Prabang, Vientiane and Champassak were placed under the
oppression of the French protectorate. The Lao heroic people continued to
fight against the French. Like the rest of Southeast Asia, the country was
shortly occupied by the Japanese during the World War II. The French
came back after the Japanese defeat and they were faced with the Lao
people’s resistance.
In 1945, the Lao people proclaimed its independence from France. Some
years later, this proclamation of independence was recognized by the
United Nations. The end of the French colonial rule did not bring peace to
the Lao people. The US bombing campaign over the portion of the
Hochiminh trail crossing the Lao PDR during the “ Vietnam War ” obliged
the Lao patriotic people to fight against the US and their local
The “Lamvong” is the Lao national folk dance. It is organized for all
gladly occasions. The Lao hosts are very proud to invite their foreign
guests to join them in the circle “Lamvong” dance with love songs and
regional traditional varieties of folk songs.
The Culture of tolerance
“Bopenh Nhang” this Lao expression literally interpreted means “Never
mind” or “take it easy”: but the meaning of “Bopenh Nhang” from the Lao
heartfelt feeling is tolerance and tolerance is always the Laotian way.
Foreigners can make it easy and it is good for outdoor recreation by
walking, talking to the Lao people and enjoying their traditional welcome.
Lao PDR: History
III. History
1. A very long existence of human civilization.
The stone tools and other human
traces discovered in many parts of
the
country,
especially
in
Houaphan and Luang Prabang
provinces are evidence of the
presence of prehistoric man in the
Lao territory at least 40,000 years
ago.
The
Lao
civilization
is
characterized by the influence of the Chinese and Indian cultures.
Wat Xiengthong (Luang Prabang)
Ho Phakeo (Vientiane City)
2. A long history of scattering independent princedoms and
principalities:
At the beginning of its history, the Lao PDR had no central power to make
it a single country. The Lao land was composed of many independent
small states scattered in different parts of the valleys of the Mekong river,
Southern China, North Eastern Thailand and some other parts of
Indochina. The famous principality was Xiengthong which later became
the capital of the Lao unified Lane Xang Kingdom.
Box:2
The word “Lane Xang” means a million elephants. The word “ Lane
Xang” with another intonation means a grazing-ground for elephants. The
kingdom of Lane Xang for many people can be interpreted as a land of a
million elephants; for some historical study, it can be interpreted as a
grazing ground for wild elephants because the capital of the Kingdom
Luang Prabang was surrounded by fields for the pasture of wild
elephants. The word “LAOS” has no meaning, it was used by mistake by
the French during the colonial time. The exact word is “LAO”.
That Luang in 1896 (Vientiane City)
That Luang (present )
Box: 3
The That Luang Stupa is a Buddhist symbol. It is one of the greatest
arts of the country. The Stupa is 45 m high and 49 m wide at its base.
It is surrounded by 30 little stupas. The That Luang Stupa was
constructed in 1566 over a little stupa previously existing in the place
by the skilled technicians of the ancient Lane Xang Kingdom during
the rule of the King Saya Sethathirath. It is believed that the little stupa
previously existing is the symbol of the founding of Vientiane, “ the
city of Sandal wood”, one of the Lao principalities existing before the
unified Lane Xang Kingdom