Foreign Direct Investment in Laos

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Case: Foreign Direct Investment in Laos The Asian economy has been on a rise despite there being a lot of challenges such as civil wars especially in the Middle East. Laos is one country that has been little known about until recently where foreign investors have started flowing in rapidly. Lao is a land locked country that is surrounded by some of the economic giants in Asia. The neighboring countries have been on a positive economic growth making Laos to be conspicuously an underdog for far too long. Some of the neighbors of Laos are Thailand, China and Vietnam. China is on record as having the greatest growth rate in the past few years which on overage is in double digits. Laos has a land area is approximately 236000sq.km making it one of the small countries. The population density is 25people/sq.km as at 2008. The growth rate is recorded as at 2.3%. The population that is available to offer direct labour is estimated at 2.9 million people. The people of Laos are religious, and the biggest religion is Buddhism, though there are other small communities (Lao Voice). Laos has a stable government and has not experienced political instability. This is one of the many other factors that have attracted foreign investors to put more in the country’s development. On political grounds, Laos is one party nation that embraces communism just like most of its neighbors. The literacy levels in the country have been on a positive gradient thus making it possible to acquire skilled as well as non-skilled labour with ease. In addition to this, country has good climatic condition that flavours agricultural activity, which supports a majority of the citizens. The agriculture as the main economic activity has been overtaken by trade. Laos has established strong trade link investments with its neighbors such as Thailand, Vietnam and more so China. Foreign Direct Investment (FDI) is a

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