Laos Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in laos, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Overview

In 2022, industry (including construction) accounted for approximately 33.6 percent of Laos’s GDP.  Laos has underdeveloped infrastructure, including road networks and public water and electricity systems.  Transportation projects continue to be in high demand as the country modernizes.  Following the end of COVID-19 lockdowns in April 2022, construction for office buildings, shopping malls, and apartment buildings quickly resumed, particularly in the capital of Vientiane.  Chinese, Vietnamese, and Thai companies are the most active participants in infrastructure development in Laos.  The Lao government makes use of donor funding, development banks, and other financing methods to pay for infrastructure projects.  Laos is also undergoing development of its airport and aviation system, including the construction of provincial airports as well as recently acquired Japanese funding for the creation of new domestic and international terminals at Wattay International Airport in Vientiane.  The international airport in Luang Prabang is also slated for upgrades and expansions through a public-private partnerships.

Laos seeks to modernize and integrate its electrical grid in the next decade in pursuit of its goal of increasing electricity exports to Thailand and Vietnam, while at the same time providing electricity to 98 percent of total households by 2025.  To do this it will need to invest in modern power distribution and power management equipment and expertise.

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