Experience the forgotten land of million elephants

rich cultures and traditions

...exotically friendly Lao

Economy

Nationalization and collectivization of agriculture started when Kingdom of Lao was overtaken by Lao People Democratic Republic in 1975 and lasted for about a decade. Rapid changes in the global economy and a must catch-up with the age of globalization, reforms in agriculture, monetary policy, commodity pricing, investment and privatization were in made in the mid-80's. As the result, the restrictions on privatization and ownership of private property began to be lifted and country began to open its trade to the neighbor countries and foreign investment start to plunged into the country. This has a tremendous impact on local economy and boost the GDP growth rate between 6-7 percent per year and the average per capita GDP growth rate from 8-12 percent per year. Such significant increase does not much improve the standard of living of the Laotian, as Lao PDR today has poverty eradication of 27,500 families and average per capita GDP is 3.15 million kip or about 300 US$ according to the report by Department for the Promotion and Management of Domestic and Foreign Investment (DDFI) which remains as one of the poorest nations in the world. The government is working with all its effort to get the country out from current economy position and end to the poorest nations in the world by 2020. Despite of the high inflation and trade deficit which still continue to hammer on local economy together slow down on the region economy and health threat diseases such as SARC and bird flue recently