3. I. Laos Fast Fact
1) Full name: Lao People's Democratic Republic
2) Population: 6.3 million (UN, 2009)
3) Capital: Vientiane
4) Area: 236,800 sq km (91,400 sq miles)
5) Major languages: Lao, French (for diplomatic purposes)
6) Major religion: Buddhism
7) Life expectancy: 63 years (men), 66 years (women) (UN)
8) Monetary unit: 1 new kip = 100 ath
9) Main exports: Clothing, timber products, coffee, gold, copper, electricity
10) GNI per capita: US $740 (World Bank, 2008)
11) Internet domain: .la
12) International dialing code: +856
13) Administrative Division: Three regions, 18 provinces, 1 capital city, 1
special zone and 142 districts
4. New Year 1-Jan
Lao Public holidays
Army National Day 20-Jan
Makhabusa Day 8-Feb
Women International Day 8-Mar
Lao Popular Revolutionary Party
22-Mar
Day
Lao Buddhist New Year 13-16-Apr
Labor International Day 1-May
Visakhabusa Day 7-May
Child International Day 1-Jun
Khao Phansa Day 5-Jul
Constitution Day 15-Aug
Khao Padab Din Day 18-Aug
Power Seizing Day 23-Aug
Khao Salak Day 2-Sep
Oak Phansa Day 2-Oct
Boat Racing Festival Day 3-Oct
Teacher National Day 7-Oct
That Luang Festival Day 31-Oct
National Day 2-Dec
7. 1. Phongsali (northern-most provincial town)
2. Muang Khua in Phongsali province, which can be reached by road or by
Saung Ou river
3. Botene - border check point to Yunnan province of China
4. Muang Sing
5. Luang Nam Tha
6. Xieng Kok - a small town on the Mekong river across Myanmar's Shan state
7. Muang Xai (Udomxai province)
8. Muang Ngoy in Luang Prabang province, which can be reached by road or by
Saung Ou river
9. Sam Neua (Hua Phan province)
10. Houi Xai - border check point across Mekong river with Thailand's Chiang
Khong in Chiang Rai province
11. Paktha - a village from where ones could go up in a boat on Nam Tha river to
Luang Nam Tha
12. Pak Beng - a small town on the Mekong, a stop over place for the slow boat to
and from Luang Prabang
13. Luang Prabang
14. Xayabouri
15. Phonsavan (provincial town of Xieng Khoung province)
8. 16. Namkan - border check point with Vietnam
17. Vang Vieng
18. Phonhong
19. Vientiane
20. Pakxan in Borikhamsay province - local Lao and Thai people can cross the river
21. Lak Sao
22. Nam Pao - border check point with Vietnam
23. Naphao - border check point with Vietnam
24. Tha Khaek (provincial town of Khammouane province) - border check point with
Thailand's Nakhon Panom across the Mekong
25. Dansavanh border check point with Vietnam's Lao Bao
26. Savannakhet - border check point with Thailand's Mukdahan across the Mekong
27. Saravan
28. Sekong
29. Pakse (provincial town of Champasak)
30. Vangtao border check point with Thailand's Chong Mek in Ubonratchathani province
31. Attapeu
32. Vernkham - border check point with Cambodia
10. 1-Seaports
Assessment mountainous and landlocked country located in
Laos is a largely
upper Southeast Asia (no port within the country borders and centre of
GMS_Great Mekong Sub-region)
The only Asian country with five borders, surrounded as it is by
Thailand, Myanmar, China, Vietnam and Cambodia with its borders:
Thailand to the west: 1,754km
Cambodia to the south : 541km
Vietnam to the East: 2,130km
China to the north: 423km
Burma to the north-west : 235 km
Any international land transportation among other nations has to be
conducted through Lao territory, and acknowledging the rapid economic
growth of these countries, therefore, the future growth of the international
transportation industry is assured.
11. 2-Airports
Assessment than 8 airports including:
Laos has more
Four international airports :
Luang Prabang International Airport
Wattay International Airport (Vientiane)
Pakse International Airport
Savannakhet International Airport
The others domestic airports in: Xiengkhuang, Savannakhet,
Champasack, Bokeo, Oudomxay and Huaphanh.
Airlines: Lao Airlines, Bangkok Airways,Thai Airways International,
China Southern Airlines and Vietnam Airlines
Vientiane is in practice the air travel centre of this country, serving to
support most of the nation’s commercial air traffic and the development
of the tourist industry.
12. 3-Road transportation
Assessment
Total road networks:32,624 Km
National roads: 7,160km
Provincial roads: 8,952 Km
Local roads: 16,512 Km
Road No. 13 is backbone (1,230 Km)
8 routes has been designated as ASEAN Highway
routes namely AH3 (NR3),AH13 (NR2), AH15
(NR8), AH120 (NR9), AH131(NR12),AH11&12
(NR13S&13N), AH132 (NR18A) and AH132 (NR18B)
Laos is traversed by 5 Asian Highway routes namely
AH11, AH12, AH13, AH15 and AH16.
The five major roads in Laos are:
13. 1. Route 1, which starts from the China-Lao border and passes
Luangnamtha, Oudomxay and Luangprabang before connecting with
Route 6 in Huaphanh
2. Route 7 starts from Route 13, linking Luangprabang and Xiengkhuang to
the Lao-Vietnam border before terminating at the seaport of Vinh.
3. Route 8 begins at Route 13 at Borikhamxay before passing through
Khamkeut and entering Vietnam. The route also connects to roads within
Vietnam between Vinh and Ha Tinh, both of which are important ports.
4. Route 9 starts at the Khaengkabao fluvial port in Savannakhet before
joining Route 13 to Vietnam at the Danang seaport. This route is regarded
as the major highway linking Laos to the sea.
5. Route 13 connects the south with the north of the country. It begins at the
Cambodian border and passes through Champasack, Saravane,
Savannakhet, khammuane, Borikhamxay, Vientiane and Luangprabang
before crossing through the middle of the country into Oudomxay. Route
13 is regarded as the "trans-Asia highway" passing through Cambodia to
the south of Vietnam as well as the starting point of several routes, for
instance routes 7,8 and 9
14. Road Transport is a dominant mode of Transport in
Laos covering more than 90% of total freights.
Total Transport Companies are 146 co. of which :
67 Passenger transport Companies
62 Freight transport Companies.
17 shipping companies.
UNESCAP, Bangkok, Thailand Oct 10, 2005
In Laos, containers are typically unloaded in neighboring country
ports and moved by road or air to Vientiane.
The main transportation routes to and from Vientiane are:
Vinh port of Vietnam (580 km)
Danang port of Vietnam (1,060 km)
Cambodia border (900 km)
Chinese Border (700 km)
Bangkok port of Thailand (650 km)
16. Laos transportation distance
CENTRAL LAOS
Destination City Province Distance (kms) Route No. Transit Time
KM52 Vientiane Province 52 13 Half Day
Vang Vieng Vientiane Province 156 13 1
Xaysomboune Xaysomboun 212 13 1
18. 4-Inland Waterway Assessment
In the mountainous reaches of Laos, land transportation is almost
impossible or uneconomic. In such places resorting to the nation’s
waterway system has solved the problem.
The total length of the inland waterways of the Laos is 4,600 km. The
primary component of this system is the Mekong river, with 1,970 km or
40 per cent of its total length within the territory of the country.
The Mekong River is navigable for much of its 1,800 kilometers length
through Laos, linking the north and south of the country.
The route can be divided into three parts:
i. China border-Huoixai-Luangprabang: many small rapids that are a
barrier to navigation in the dry season
ii. Luangprabang –Vientiane: navigable throughout the year but also
has difficult sections, even at high water levels.
iii. Vientiane-Thakkek-Savannakhet: the navigation could be improved
at a relatively low cost, although again, there are several dangerous
areas
19. In the Pakse – Don Deth section navigation is easier only as far as the
Cambodia border where the Khone Falls are an impassable obstacle. A 5-
km rail line used to operate in colonial times on Khong Island to transship
goods between the top and bottom of the falls.
There are 21 river port facilities on the Laos side of the river.
Vessels up to 400 DWT can operate year round on the northern section of
the Mekong River, while elsewhere operations are limited to barges of 200
DWT or less. In the dry season, most of the river is navigable only by
small, shallow-draft, narrow-beam passenger vessels.
Vessels of 300 DWT or greater capacity carry mainly industrial and
agricultural products. The main commodities handled are sand, rock, wood
products, food grains, steel products, and logs.
The majority of the traffic is domestic, but international traffic is important
on the upper section among China, Lao, Myanmar and Thailand. Since the
national road 13S was improved, river freight traffic between Vientiane and
Savannakhet has fallen away, whereas there is still thriving river transport
on the section between Vientiane and Luang Prabhang because the more
severe terrain reduces road transport on that section.
20. ASEAN Inland Waterway Profile
Country Navigable Number Carrying Freight Passenger
Length (km) of Capacity Transport Transport
Vessels (DWT) (Million (Million
Tons) Pax)
Cambodia 1,750 n.a. n.a. 0.10 n.a.
Lao PDR 4,600 793 8,500 1.10 0.73
Myanmar 6,626 2,400 240,000 4.98 45.83
Vietnam 11,400 752 239,502 22.70 145.00
Total CLMV 24,376 3,945 488,002 28.88 191.56
Share in Total 47.8 % 2.9 % 15.7 % 55.8 % 56.5 %
Total ASEAN 50,915 134,759 3,115,296 51.72 339.01
Source: United Nations ESCAP, November 1998
21. 5-Railway transport
Assessment
Pending the completion of a feasibility study of the Trans-Asian rail
link, no firm conclusions on the viability of the various links can be
drawn.
From preliminary studies, it is clear that the rail route through the
Lao parallel to NR13 is the shortest link and would minimize
operational costs for Thailand-China traffic. However, the capital
cost would be high, much of which would fall on the Lao
government.
The development of railways in Lao could be considered as an
alternative to the road system, particularly in the north-south
corridor, and its area of influence, where most of the limited local
rail traffic could be generated.
The detailed design of a 3.5km from the Middle of Friendship
Bridge to Thanaleng had been completed.
The construction of railway line from the middle of friendship bridge
to Thanaleng of 4km funded by Thai Government
23. 6-Customs Formalities
Assessment The GMS Cross-Border Transport Agreement (CBTA) is a
Laos is under
compact and comprehensive multilateral instrument that covers all the
relevant aspects of cross-border transport facilitation in one document.
These include:
single-stop/single-window customs inspection
cross-border movement of persons (that is, visas for persons engaged in
transport operations)
transit traffic regimes, including exemptions from physical customs
inspection, bond deposit, escort, and agriculture and veterinary inspection
requirements that road vehicles will have to meet to be eligible for cross-border
traffic
exchange of commercial traffic rights and
infrastructure including road and bridge design standards, road signs, and
signals.
The CBTA applies to selected and mutually agreed upon routes and points
of entry and exit in the signatory countries. The CBTA includes a preamble
and 10 parts, and has 20 annexes and protocols
(www.adb.org/GMS/Cross-Border/annex.asp).
24. LAOS CUSTOMS CHECK POINT
Lao International Airports
Vientiane International Airport
Luang Prabang International Airport
Pakse International Airport
Savannakhet International Airport
Land border crossing or Checkpoints
I. CAMBODIA – LAOS
There are 2 checkpoints between Cambodia - Laos
border, one for Land Crossing and the other by River
coming from Stung Treng.
1. Stung Treng - Vern Kham: River Crossing (Northern
Cambodia - Champasack province, southern Laos)
2. Dong Kralor - Vern Kham - this Land Crossing which is not far
from Vern Kham border.
25. II.CHINA – LAOS
There are 3 check point between China and Laos as
following:
1. Mohan - Boten (Yunnan Province - Luang Namtha province)
2. Xiengkok: River Crossing ( Yunnan Province - Luang Namtha
province)
3. Sobhun checkpoint (Yunnan province - Phongsaly province) -
26. III. THAILAND – LAOS
There are 7 border crossings sharing between Laos and
Thailand from the north to the south as following detail:
1. Chiang Khong - Houy Xai: (Chiang Rai Province - Bokeo
province)
2. Nakaxeng - Kaenthao (Loei province - Sayabouly Province)
3. Nong Khai - Vientiane (Thai-Lao Friendship border 1)
4. Bungkan - Pakxan (Nong Khai province - Bolikhamxai
province)
5. Nakorn Phanom - Thakhaek (Nakorn Phanom province -
Khammouane province)
6. Mukdaharn - Savannakhet (Mukdaharn province -
Savannakhet province via Thai-Lao Friendship border 2)
7. Chong Mek - Vangtao (Ubon Rathchathani Province -
Champassak Province)
27. However, three main transit transport corridors are used:
Thanaleng transit corridor: from Vientiane to Bankkok: 642km of which
22km are in Laos
Savannakhet Transit Corridor: the distance between Savannakhet and
Bangkok is 663km
Pakse Transit Corridor: the distance between Pakse and Bangkok is
747km of which 42km are in Laos.
Currently, there are 2 ports for Lao Transit goods in Thailand such
as Klong Teui and laem Cha Bang
Goods transport operation has been opened free for all transport
operators of two sides and has became into effective since
firstMarch 2004.
Simplify Customs procedures, formalities and documents and
eliminate unnecessary inspection have been made
Transit Transport Cost has now been significantly reduced by 20-
30%.(If use Lao Trucks will reduce by 40-50%)
28. IV. VIETNAM – LAOS
There are 7 crossing between Vietnam - Laos as following:
1. Taytrang- Sobhoun (Dien Bien province - Pongsaly Province)
2. Nameo - Banleui (Thanh Hoa province- Huaphanh province)
3. Namkan - NamCan (Nghe An province - Xiengkhuang province)
4. Keonua - Namphao (Ha Tinh province - Bolikhamxai province)
5. Chalo - Napao (Quang Binh province - Khammoun province)
6. Lao Bao - Dansavanh (Quang Tri province - Savannakhet)
7. Bo Y - Phukeua (Kontum province - Attapu province)
However, two main transit transport corridors are used:
Road No. 8 from Paksane (Laos) to Cua Lo Port , Vinh (Vietnam) : 257km
Road No. 9 from Savannakhet (Laos) to Danang port (Vietnam): 944km
There are two other potential corridors:
R12 from Thakhek to Vung Ang port (Vietnam): 313km
R18 from Pakse to Danang(Vietnam) : 561km
Curently, Vietnam has granted Laos to use all existing ports in Vietnam, for Lao
Transit Goods, but the most extent are HaiPhong, Kua Lo, Vung Ang,
Danang,and Hochiminh city
29. IV.MYANMAR – LAOS
Laos has not yet concluded Road Transport Agreement with
Myanmar.
The construction of the Friendship bridge across the Mekong
River has been projecting
The completion of this bridge, Laos can become land-linked
country for Myanmar to Vietnam and Cambodia.
Two border gates have been designated for usage.
30. CUSTOMS FORMALITY & IMPORT PAPERWORKS REQUIRED
Document Required
Diplomatic Misssion and International Organisation in the LAO P.D.R.
Household Effects or
Live Animal
Service Description Car(POV) Diplomatic Goods
(Cat or Dog)
(HHE or HHG)
Invoice and Packing List X X
Inventory Packing List X
Motor Vehicle Description Inventory X
Pet Sheet Form & Photo X
Tally Sheet X
Copy Airway Bill / Bill of Lading X X X
Copy of Valid Passeport of the Owner's signature, visas entry to Laos and
X X X
company Stamp
Health Certificate X
Vaccination Book X
Lao Custom Form D-50 Temporary Import (handled by VNS) X X
Lao Custom Form D-40 Permanent Import (handled by VNS) X X
Debit Note to The Protocole Department, Lao Ministry of Foreign Affairs
X X X
(Handled by VNS)
Certificate or Attestation of personal belonging (Handled by VNS) X X
31. Document required
Private-Owned company, State-owned company & State & Private-owned Company
Subject to Subject to 1% Exempted of
Service Description
Tax and Duty Tax Tax and Duty
Invoice & Packing List X X X
Bill of Lading or Air Way Bill X X X
Certificate of Origin
Dangerous Goods Declaration
Phyto Sanitary Certificate
Lao Custom Form D-13(handled by VNS
FIMC Approval (Foreign Investment Management Committee) X X X
Vientiane Capital Department of Planning and Investment Approval
Lao Custom Form D-13 for Department of Commerce Approval, Vientiane Capital,
X X X
Ministry of Commerce (handled by VNS)
Custom Clearance at bonded warehouse at Laos Side(handled by VNS) at
X X X
Thanaleang Warehouse or Wattay Airport
Lao Custom Form D-40 or D-50 for Concerned Ministry Approval (handled by VNS)
Ministry of Industrie, Transport and Telecommunication
Ministry of Health
X X X
Ministry of Agriculture
Ministry of Education
Ministry of Labour
* Lao Custom Form D-40 or D-50 for Custom Department Approval, Ministry of Finance
(handled by Geotrans) X X X
* D-13 Temporary Import Clearance; D-40 Permanent Imports; D-50 Temporary Imports
32. 7-Telecommunication
Assessment
The telecommunication in Laos has been much
improved.
International telephone, Telex, Telefax, and Internet
services are available into and out of Laos. (there are
now 5 telephone providers)
The installation of fiber-optic cable, Microwave system
and satellite communications are underway.
The completion of these systems will provide Laos a
good comprehensive of modern system of international
standards and practices.
33. 8-Case Studies
i. From Mella University
Singapore
ii. From UNESCAP on Route
Vientiane-BKK and Danang
iii. From Thammasat
University Thailand on trade
of Thai_Laos_Vietnam
iv. From JESTRO on EWEC
v. From KIASIA.ORG
34. Mode of transport of Laos in comparisons with other GMS
Road Port IWT Airport Railway
Lao PDR Fair/good Poor Fair/poor Poor N/A
Myanmar Poor Poor Fair Poor Fair
Thailand Good Fair Fair Good/fair Good
Vietnam Fair/poor Fair Fair Fair Fair
Yunnan Fair/good Fair Fair Good/fair Good
Source: ADB Consultant
35. i-Case Study 1
MODELLING FREIGHT LOGISTICS: THE VIENTIANE-SINGAPORE CORRIDOR
(Nanyang Technological University & Carnegie Mellon University Singapore
August 21-24, 2001 )
Channel USD/TEU Duration
1 -“Road-Sea” via Danang (Vietnam) 2,150 9/10 days
2-“All-Road” via Bangkok (Thailand) 2,139 4/5 days
3 – “Road-Sea” via Bangkok Port 1,215 6/7 days
4 -“Road-Rail-Road” via Lad Krabang (Thailand) 1,550 7/8 days
57. iv-Case Study 5
Table 1: Costs comparison between using Lamchabang port and Danang port to Yokohama
Activities Danang Lamchabang Danang Lam Chabang
Cost ($)/TEU Cost ($)/TEU Time/days Time/days
Inland trucking cost within Thailand 114 114 1 1
Inland trucking cost: Mukdaharn-Danang 1,000 0 2 N/A
Transit customs fees:
· Thailand (per 1st TEU, next is 50 $) 250 0
· Lao PDR (per 1st TEU, next is 50 $) 350 0 N/A N/A
· Vietnam (per 1st TEU, next is 50 $) 150 0
Danang Port, Export Customs & Terminal 198 236 1 1
Handling Charges (THC) fee
Freight charges to Yokohama 580 800 8 10
TOTAL 2,642 1,150 12 12
Source: Compiled from Industry
58. III. Economics review
To be continued in part 2
FDI Overview
GDP Overview
Import Export Overview
Forecast
59. 1-Summary
Laos is a landlocked country. Subsistence rice farming is the mainstay of the
economy. It employs approximately 85% of Laos population and generates 51%
of GDP. Economic hardship is further exacerbated by low domestic savings
Laos experienced startling economic growth from 1988-2007. The Asian country
enjoyed excess of 6% growth during this period. Despite this quick growth, Laos
remains saddled by a distinct lack of infrastructure and paucity of internal and
external telecommunications. Construction is a strong economic driver with a
number of road and hydroelectric dam projects going on. The small quantum of
domestic savings force Laos to depend on foreign confessional loans and
assistance for development of the country's economy.
Laos' GDP with respect to purchasing power parity was $12.65 billion in 2007.
GDP per capita was $2,000. Agriculture dominates the economy-with 40.9% of
GDP. Industry contributes 33.2%. Services contribute 25.9% to the Laos
economy. 2.1 million persons make up the labor force. Approximately 30% of
Laos population lives below poverty line. Unemployment rate is 2.4% (2005).
60. 1-Summary
The list of agriculture products produced in Laos include corn, sweet potatoes,
cotton, peanuts, water buffalo, poultry, and rice. Industries include timber, tin
and copper mining, garments, construction, cement, gypsum mining, and
tourism. Industrial production growth rate was 12%. Goods worth $970 billion
were exported in 2007.
Commodities like coffee, tin, electricity, gold and wood products were exported.
Thailand was the biggest exporting partner with 34.6% of total Laos exports making
its way into the country.
Vietnam (10.9%)
China (6.2%) follow behind.
Laos imported vehicles, consumer goods, machinery and fuel to the worth of
$1.378 billion in 2007. It main trading partners were Thailand (69.4%), China
(9.4%) and Vietnam (5.6%).
61. 2007_Top Three for Laos Import/Export
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Thailand China Vietnam Others
Import Export