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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Automotive Sector
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Overview

Investment and export opportunities in Laos’s automotive sector focus on the country’s expanding infrastructure and rising demand for commercial and electric vehicles (EVs). Priority areas for investment include developing EV charging networks, setting up manufacturing facilities for EV parts and components, and establishing reliable local service and maintenance centers. The government provides tax incentives and imposes no import restrictions on EVs to encourage their adoption. The government aims to increase the number of electric vehicles on the streets to over 30 percent by 2030, which has led to exponential growth in the EV market. U.S. brand automobiles remain popular in Laos for their reliability and quality.  SUVs and pickups are particularly popular in Laos due to the country’s rugged terrain and challenging road infrastructure. Common business ventures include partnering with local dealerships to gain access to established networks and expertise, especially for distribution and service, and investing in special economic zones (SEZs), such as the Savan-Seno SEZ or Vientiane Industrial and Trade Area, which provide competitive advantages like tax holidays and other incentives.

On August 6, 2024, the Ministry of Industry and Commerce of Laos imposed a temporary halt on the importation of light motor vehicles including SUVs, sedans, vans, and pickup trucks with a CIF (Cost, Insurance, and Freight) valued at over $50,000. According to the Lao PDR government, “the temporary suspension will be effective from August 20 to December 31, 2024, or until further notice.”  The suspension remains in effect to date.

 

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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