Skip to end of metadata
Go to start of metadata

According to latest statistics from the Ministry of Planning & Investment (Statistical Year Book, 2014), Lao PDR has experienced a rapid growth in the domestic trucking industry – from about 16,000 in 2010 to more than 44,000 in 2014. This is in line with the general rapid growth in all registered vehicles – from 617,500 in 2010 to a total of 1,586,545 in 2014 – with motorcycles accounting for 77% and trucks only 3%. 

The trucking capacity however, still remains poor, as the truck fleet is aged, with about 50% of trucks more than 20 years old and a majority of the rest more than 10 years old, generally made up of smaller capacity vehicles with low capacity. 

Much of the freight is carried on own-account vehicles. Trucking services is entirely provided by private companies, although most have only small fleets. Truck associations have been established in all provinces as trade associations, with some government involvement. Some of the associations provide guidance on rates, but the industry appears to be generally competitive.

The Lao International Freight Forwarder Association was established by Ministerial Decree in 2001 as a trade association and to upgrade professional knowledge and to promote investment in the business of freight forwarding and transport. Transport businesses operating for-hire services (as well as vehicle repair, freight forwarding, warehousing, and depots) are required to obtain a business license from provincial departments of public works and transport (DPWTs) or, for companies with foreign ownership and for companies making large investments, from the Ministry of Public Works and Transport (MPWT).

WFP currently has 21 registered transporters for inter-warehouse (warehouse to warehouse) deliveries and 17 from WFP warehouses to final delivery points (schools, health centres, and villages).

Transporters typically used larger trucks (20-40 mt) for inter-warehouse deliveries (all on all weather paved roads). Delivery to final delivery points is mostly subcontracted – with larger trucks picking form the warehouses to districts on secondary roads and smaller trucks (0.5 – 3 tons, tuk-tuks, 3 wheelers, and hand trackers) on smaller and paved tertiary roads to the villages.

WFP makes separate tenders for the dry season and the rainy seasons. Transport rates are higher for the rainy season and efficiency is poor due to the poor road conditions and obstacles (landslides and broken bridges). To mitigate these constraints, WFP endeavours to make early deliveries (June- before the rainy season) for the second first semester (starting September) and spreads out capacity to engage more transporters (through counter offers) to avoid allocating volumes exceeding transporter’s capacity. 

For more information on transport company contact details, please see the following link: 4.7 Laos Transporter Contact List .