When I first came to Lao PDR in 2000, it was slow moving and sleepy, where everyone seems to take their time getting things done.

However in my most recent visit to Lao PDR this year, I sense things have changed.  While I was in the capital Vientiane, I felt a flow of energy running through the city. It was bustling and people seem to in a hurry to get somewhere.  There was an air of commerce.

Laos is often seen as a poor land locked nation.  However its geographical position is now looking more and more strategic.  Sandwiched between two robust economies in South-east Asia i.e. Thailand and Vietnam; plus the big market China to its north, its location is becoming  a bonus.  Investors can use Laos as a platform for export and business with either or all of these markets. In fact enterprising Lao businessmen are already capitalizing on this; involved in all kinds of intermediary trade and services.

The ASEAN Free Trade Area (AFTA) and the forthcoming China-ASEAN Free Trade Agreement will only further enhance this geographical attractiveness.

In addition Laos is also blessed with mineral resources and mining has become a major business activity. And lets not forget its hydropower potential.

More importantly are also the measures taken by the Lao Government in improving its capacity in the area of public reform.  For  instances its has embarked on  a National Governance and Public Reform program to strengthen the provincial authorities’ capacity in public administration. (I had the privilege of conducting a workshop on Investment Management for one such province under this program).

Yes, I definitely see things in Laos changing and improving.  On that note my message to foreign businessmen is;

It is time to give Laos a serious look.

Regards

Leon

http://gmsnet.typepad.com/trade_development/2007/11/there-is-energy.html