Over half a century ago, Lao PDR began its journey to become a modern nation and committed itself to long-term development ambitions. It has delivered electricity, schools, roads, and has become an important energy exporter.
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Key findings:Lao PDR has enjoyed real annual GDP growth averaging over 7% in the last two decades, mostly on the development of natural resource based industries. The contribution of resource industries... Show More + has grown significantly over this period, a trend that is expected to continue.However, the country’s rapid growth has masked the costs of a still largely unreformed business enabling environment. Significant aspects of the investment climate remain characterized by not enough transparency and predictability for investors.The Enterprise Survey shows that inadequate workforce skills has emerged as the top constraint to private sector expansion – almost 20% of firms surveyed said that this was a serious constraint. Corruption and crime ranked second and third respectively, with about 15% ranking each as a major constraint. About 13% of firms reported that electricity, trade regulations and tax rates were serious problems.Firms in Lao PDR stand out from those in neighboring countries in on Show Less -
VIENTIANE, LAO PDR, February 3, 2015 – The growing Lao economy needs to diversify beyond its natural resource base to create more jobs and improve the business environment for foreign and domestic investors,... Show More + according to two new World Bank Group reports released today.Greater private sector investment in businesses can increase opportunities in the agricultural, services and manufacturing sectors – where the most new jobs can be created - and opportunities for the country’s youth will increase if future workers can learn more and stay in school longer, according to the World Bank Group Lao Development Report and the Investment Climate Assessment.“Fueled by rapid growth in the hydro and mining sectors, the Lao economy is growing fast. However, it is not generating a lot of jobs,” said Sally Burningham, World Bank Country Manager in Lao PDR. “To end poverty and boost shared prosperity, an improved business environment can help increase the number of jobs in agriculture, manufacturing and Show Less -
An additional 96,000 young people will be looking for jobs every year in the coming decades. Having more potential workers presents an opportunity for growth, but only if productive, income-generating... Show More + jobs are available.While the government has focused on the role of education in skills development, the Lao PDR Development Report aims to identify what needs to be done to create more and better jobs for Lao PDR’s growing population.Key findingsLao PDR’s economy is growing fast but growth is mainly driven by the hydro and mining sectors where very few jobs are created: only 22,000 people work in these sectors and this number is unlikely to increase much, given how capital intensive those sectors are.Currently, most of the jobs that are available in Lao PDR are not very attractive: productivity and growth remains very low, and this implies relatively low wages, and relatively slow growth in those wages.The underlying problem is that a difficult business environment keeps foreign and domes Show Less -
Bank Group ContributionThe World Bank acted as the trust fund administrator and contributed additional resources for product supervision.Partners ContributionThe total cost of the project was $ 7.6 million... Show More + and was financed through a multi donor partnership.The National Implementation Unit, under the Department of Planning and Cooperation (of the Ministry of Industry and Commerce), was responsible for coordinating activities financed by the project.The Ministry of Industry and Commerce, along with development partners, established the Trade Development Facility as the principle mechanism for financing the implementation of the trade and integration action matrix via a Multi Donor Trust Fund. The trust fund consisted of the contributions from the European Union, Australia, and GermanyMoving ForwardLao PDR now has the key building blocks to manage and implement an effective aid-for-trade program. It has an enlarged capacity and is largely motivated for the next phase of the program Show Less -
Vientiane, Lao PDR, November 14, 2011 – Over the past decade, Lao PDR has experienced a boom in economic growth. Per capita incomes have more than doubled since 1990, raising the country from a low-income... Show More + to a lower-middle-income economy in 2011. Following the introduction of the New Economic Mechanism and the implementation of reforms since 1986, the economy has expanded on average by 6.5 percent per year between 1990 and 2009. By 2010, per capita income reached US$1,010 while the country’s poverty headcount was significantly reduced from 46 percent of the population in 1992-1993 to 28 percent in 2007-2008.“Recent economic development is commonly linked to the natural resource sector, as Lao PDR is richly endowed with minerals, water resources for hydropower development, and forestry products. However, for the country to sustain its growth, it is important to strike a balance between the resource and non-resource sectors”, says Genevieve Boyreau, the World Bank’s Senior Country Econom Show Less -