Laos

LAOS

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Laos is located in Southeastern Asia, northeast of Thailand, west of Vietnam

Facts about Laos

Population	6,677,534 (July 2008 est.
Capital	Vientiane (Viangchan)
Time zone	UTC+7 (12 hours ahead of Washington, DC during Standard Time)
Location	Southeastern Asia, northeast of Thailand, west of Vietnam

General info about Laos

Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th Century under King FA NGUM. For 300 years Lan Xang had influence reaching into present-day Cambodia and Thailand, as well as over all of what is now Laos. After centuries of gradual decline, Laos came under the domination of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the Communist Pathet Lao took control of the government ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam. A gradual return to private enterprise and the liberalization of foreign investment laws began in 1986. Laos became a member of ASEAN in 1997.

Disease threats

degree of risk: very high food or waterborne diseases: bacterial and protozoal diarrhea, hepat

Languages spoken

Lao (official), French, English, and various ethnic languages

What about drugs?

estimated opium poppy cultivation in 2008 was 1,900 hectares, about a 73% increase from 2007; estimated potential opium production in 2008 more than tripled to 17 metric tons; unsubstantiated reports of domestic methamphetamine production; growing domestic methamphetamine problem (2007)

Ethnic division

Lao 55%, Khmou 11%, Hmong 8%, other (over 100 minor ethnic groups) 26% (2005 census)

HIV/AIDS prevalence rate

0.1% (2003 est.)

Climate

tropical monsoon; rainy season (May to November); dry season (December to April)

Resources

timber, hydropower, gypsum, tin, gold, gemstones

Economy

The government of Laos, one of the few remaining one-party Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year from 1988-2008 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with an underdeveloped infrastructure particularly in rural areas. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with support from Japan and China. Electricity is available in urban areas and in most rural districts. Subsistence agriculture, dominated by rice, accounts for about 40% of GDP and provides 80% of total employment. The economy will continue to benefit from aid from international donors and from foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. Laos, which gained Normal Trade Relations status with the US in 2004, is taking steps to join the World Trade Organization. Related trade policy reforms will improve the business environment. On the fiscal side a value-added tax (VAT) regime, begun in late 2008, should help streamline the government's inefficient tax system. Meanwhile, economic prospects will improve gradually as the administration continues to simplify investment procedures and as a more competitive banking sector extends credit to small farmers and small entrepreneurs. The government appears committed to raising the country's profile among investors. An investment boom is occurring in mining and construction. Foreign donors have praised the Lao government for its efforts to improve the investment regime. The World Bank has declared that Laos' goal of graduating from the UN Development Program's list of least-developed countries by 2020 could be achievable.