Transporters 

According to the latest statistics from the Ministry of Planning & Investment (Statistical Year Book, 2018), Lao PDR has experienced continuous growth in the domestic trucking industry – from about 44,000 in 2014 to more than 56,335 in 2017. This is in line with the general growth in all registered vehicles – from 1,586,545 in 2014 to a total of 1,979,789 in 2017 – with motorcycles accounting for 76% and trucks only 3%.  

The trucking capacity, however, still remains poor, as the truck fleet is aged and 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 to upgrade professional knowledge and 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 16 registered transporters for inter-warehouse (warehouse to warehouse) deliveries and 18 from WFP warehouses to final delivery points (schools, health centres, and villages). 

Transporters typically used larger trucks (20-35 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: 4.8 Transporter Contact List.

 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

Manual Labour 

The Prime Minister's Office of Laos issued notice No. 1502/PMO for the adjustment of the minimum wage in August 2023. The local minimum wage increased from 1,300,000 LAK per person per month to 1,600,000 LAK per person per month on October 1, 2023. This increase is a continuation of the incremental minimum wage increases that began in mid-2022. If the employer employs a worker labouring in a hazardous area with difficult living conditions, the minimum wage must be increased by at least 15% of the minimum wage specified in the notice.    

According to the most recent data from the Ministry of Planning and Investment (Statistical Yearbook, 2022), the average wage of Lao employees varies by industry. Agriculture and industry have comparable minimum wage rates, while the service sector pays more than 3,011,000 LAK per person per month.  

Since June 2022, this is the third minimum wage increase in Laos. Depreciation of the Lao kip against foreign currencies and inflation in the cost of daily consumption products are two of the primary causes of this increased frequency of minimum wage hikes. These incremental increases also demonstrate the government's proactive approach to addressing the Laos cost-of-living crisis and its impact on low-wage workers. 

The demand for manual labor has increased, but it is difficult to obtain due to rising inflation rates. As a result, skilled labor is being attracted to neighboring nations where the minimum salary is greater. The organization seeking to employ workers must adhere to legal regulations that establish non-discrimination in terms of both employment and wages. Employers are obligated to comply with the government's regulations regarding the minimum wage and working hours. The labor might be hired either through an official work organizing business or through individual contracting. 

Labour Rate(s) Overview
	Cost  (Local Currency & USD - $)	Rate as of MMM YY
Daily General Worker (Unskilled casual labour)	120,000LAK = 6.10USD	September 2023
Daily General Worker (Semi-skilled labour)	150,000LAK = 7.62USD	September 2023
Skilled Worker	180,000LAK =9.14USD	September 2023

 

 

Telecommunications 

The Ministry of Post and Telecommunications (MPT) is the regulatory body responsible for overseeing the telecommunications sector in Laos. The MPT is responsible for issuing licenses to telecommunications service providers, regulating tariffs, and ensuring compliance with regulations.  

MPT oversees and regulates the sector on the basis of the 2021 Telecommunication Law. The Telecom Law 2021 (amended) has replaced the previous one amended in 2011. However, the Telecom Law 2021 has not been implemented in practice as of this date. The revamped provisions of the Telecom Law 2021 are intended to facilitate the ease of doing telecommunications businesses and increase the administrative efficiency of the telecommunications sector. 

Laos’ telecommunications sector is dominated by four major players: Lao Telecom (LTC), Star Telecom (UNITEL), Enterprise Telecommunications Lao (ETL) and T-Plus Laos (formerly Beeline). These companies have invested heavily in expanding their networks and improving their services in recent years. 

One of the key policies of Laos’ telecommunications regulatory framework is to promote competition in the sector. The government has issued licenses to several other companies to provide telecommunications services, including, but not limited to, Planet, LaoSat, SLT Network, Mangkone and Chalurnsup. These companies have been able to compete with the major players by offering lower tariffs and innovative services. 

Information and communication technology is formalized in Lao government policy as an important cross-cutting sector to achieve National Socio-Economic Development Plan, ensuring 100 per cent Internet coverage, access to broadband services for people across the country and transform Laos from a landlocked into land-linked country.   

In 2021, the Lao Ministry of Public Security, which is in charge of the enforcement of regulations and techniques of control of internet network with a view to ensuring national peace and public order, announced the creation of taskforce set up to monitor social media use, focusing on especially on fake news. And the Ministry of Information and Culture and Tourism, which is concerned with approving the content of information and data exchanged on the internet, issued an order to provincial-level departments to register all owners of popular websites, Facebook pages, and other social media news outlets. 

In 2023, Laos had around 6.45 million mobile phone connections, making up 85% of the country’s total population of 7.58 million. The most popular social media platforms in Laos are Facebook which accounts for 3.2 million users (46% female and 53% male), Instagram records a smaller number of users at just 488,000 (58% female and 41.2% male) and Twitter estimates a total of 238,000 users (69% female). 

For more information on telecoms contacts, please see the following link: 4.11 Additional Services Contact List.

Telephone Services
Is there an existing landline telephone network?	Yes
Does it allow international calls?	Yes
Number and Length of Downtime Periods (on average)	Not known
Mobile Phone Providers	LTC, UNITEL, ETL, T-Plus Laos
Approximate Percentage of National Coverage	18/18 provinces, 148/148 districts

Telecommunications Regulations 

The Office of Ministry of Post and Telecommunications (MPT) issued a notice on January 30, 2023, informing individuals, legal entities, and organizations that import telecommunications and ICT equipment nationwide about the Agreement on the Management of Telecommunications and ICT Equipment, No. 3583/KTS dated December 13, 2022. The importation of telecommunications and ICT equipment into Laos must be inspected and conform to technical standards first, to protect users’ rights and interests, ensure that the equipment is of high quality and safety, and ensure the stability and order of the society. The management of this equipment involves the inspection, issuance of Type Approval certificates, notification of conformity, and the use of technical regulation marks before their production, import, export, use, and distribution. Article 25 of the Agreement lists the application documents for the Type of Approval Certificate. Importers should request inspection and certification from the Department of Radio Frequency. 

On July 21, 2023, MPT published the notice No. 0416 regarding implementation of regulations on technical standards of telecommunications and ICT equipment. The notice will take effect on August 4, 2023. Notable points are 1) Type Approval certificate and Notification of compliance issued to Type 1 devices will be valid for 3 years. Notification of compliance issued to Type 2 devices will be valid for 1 year, 2) MPT accepts test reports issued by ISO/IEC17025 accredited lab, and lab’s Accreditation Certificate should be included in application documents, 3) 5G Network Equipment must pass the evaluation of GSMA NESAS technical standards, 4) Products mentioned in item 10 of the notice, such as mobile phone, tablet, router should bear with a MTC label sticker. Local importers who intend to place the label sticker in the technical documents, user manual or other places, rather than on the device or packaging box, must request permission from the radio frequency department. 

 

Regulations on Usage and Import
	Regulations in Place?	Regulating Authority
Satellite	Yes	Department of Radio Frequency, MPT
HF Radio	Yes	Same as above
UHF/VHF/HF Radio: Handheld, Base and Mobile	Yes	Same as above
UHF/VHF Repeaters	Yes	Same as above
GPS	Yes	Same as above
VSAT	Yes	Same as above
Individual Network Operator Licenses Required
Frequency Licenses Required

Existing Humanitarian Telecoms Systems 

The VHF antenna installed on top of UNDP antenna tower at maximum allowable height; the antenna is point to cover North-West side of Vientiane where coverage from UNDP Channel 3 is beyond reach. The Omni-direction antennas being use with MTR2000 is operating at its maximum capacity and can no longer adjusted to achieve more coverage; the current MTR2000 will cover maximum 2 km radius from UNDP office. However, according to the new Minimum Operating Security Standards (MOSS) requirement, it is unnecessary to have this feature in Laos. The signal has been deactivated, although it can be activated for VHF and VF purposes if needed, with proper maintenance. 

 

Existing UN Telecommunication Systems
	WFP	UNICEF	UNDP
VHF Frequencies	Yes  (Not in use)	Yes  (Not in use)	Yes  (Not in use)
HF Frequencies	Yes  (Not in use)	Yes  (Not in use)	Yes  (Not in use)
Locations of Repeaters	Yes  (Not in use)	Yes  (Not in use)	Yes  (Not in use)
VSAT	Yes	No	No

Internet Service Providers (ISPs) 

There are 25 companies that were given Business Licenses for ISPs in 2021 to provide internet connections through satellites and optical fibre networks. Individual organizations can get contracts from these companies. 

Some of the major ISPs in Laos are Lao Telecom (LTC), Star Telecom (UNITEL), Enterprise Telecommunications Lao (ETL) and T-Plus Laos (formerly Beeline). 

 

Internet Service Providers
Are there ISPs available?	Yes
If yes, are they privately or government owned?	Joint Ventures and Private
Dial-up only?	No, but include broadband, mobile data and Wi-Fi hotspots
Approximate Rates (local currency and USD - $)	Dial-up	N/A
	Broadband	100,000 LAK to 300,000 LAK (USD 10 to USD 30) per month, depends on the package or 1GB at USD 0.25
Max Leasable ‘Dedicated’ Bandwidth	512 Kbps or higher

 

Mobile Network Operators (MNOs) 

Laos has four major Mobile Network Operators. Lao Telecom, often referred to as LTC, has the largest coverage, with near-nationwide 4G though some villages in remote areas still rely on 3G or 2G. As the second largest coverage, UNITEL’s 4G signal is available in all major cities and provinces, as well as most rural districts. Enterprise Telecommunications Lao (ETL) network covers almost all major cities, the network coverage in rural areas may not be as comprehensive compared to LTC and UNITEL. T-Plus Laos network coverage is stronger in major urban areas. T-Plus has been steadily expanding into rural and remote areas. 

In 2023, Laos has around 6.45 million mobile phone connections, making up 85% of the country’s total population of 7.58 million. From October 1, 2023, telecommunications and internet companies will only be allowed to sell SIM cards through designated company service points. The Lao Telecommunication Regulatory Authority, which is under MPT, instructs mobile phone users to register their SIM cards by taking photos of their ID cards, driver’s license, family registration book and resident certificate and send them, online, to the Authority by the end of the year.  

For information on MNOs please visit the GSM Association website.  

 

Company	Number of Agent Outlets by Area	Network Strength by Area	Contracted for Humanitarian or Government Cash Transfer  Programmes?	Services Offered  (i.e. Merchant Payment,  Bulk Disbursement,  Receive & Make Payment)
Lao Telecom (LTC)	N/A	Very Good  (all provinces)	N/A	3G, 4G, 5G (some areas in Vientiane Capital), GMS, fixed-line, e-SIM card, M-MONEY (from July 2021)
Star Telecom (UNITEL)	N/A	Very Good  (all provinces)	Yes	2G, 3G, 4G, Voice, SMS, data package, e-SIM, U-MONEY(from 2018)
Enterprise Telecommunications Lao (ETL)	N/A	Good   (all provinces)	N/A	2G GSM services over the 900 MHz band, 3G UMTS service over the B1 (2100 MHz) band, 4G LTE deployment using 15 MHz of B3 (1800 MHz), fixed line, FTTH broadband internet, business solutions and education programs, E2pay
T-Plus Laos	N/A	Good  (all provinces with limited to major population center)	N/A	2G, 3G, 4G, e-SIM

 

Food and Additional Suppliers 

Rice continues to be the key staple food and the most important crop in Laos, covering about 60% of the total cultivated areas. Subsistence agriculture, dominated by rice cultivation in lowland areas, continues to account for 16% of the country’s total gross national product (GDP) and approximately 60% of the employed population works in the agricultural sector. More than 3 million tonnages were harvested in 2021/22.  

Nationally, Laos has achieved food self-sufficiency, however, there still exists food insecurity situation owning to multiple factors, including high food, fuel, and agricultural input prices. As a generalization, approximately 1.04 million people (13.9%) are estimated to be moderately acute food insecure and 71,000 people (0.9%) are recorded as being severely acute food insecure.  

Consumption of food items derived from own production remains the single most important source of food at household levels. Rice is mainly consumed. Laos’ per capita rice consumption is among the highest in the world at around 160 kg/year. Most Lao prefer to eat glutinous rice over other rice varieties, and almost all of the glutinous rice produced in Laos is used for domestic consumption. The stable food is supplemented by commonly grown vegetables including chilli, spring onion, garlic, mints, Asian leafy, lettuce, long bean, cucumber, eggplant, and cabbage.  

Farming systems are rice-based, and diversification in Laos depends on the ability of farming households to maintain rice security. When this is achieved, resources are released for plantation, and cultivation of non-subsistence cash crops including commercial rice, maize, coffee, bananas, sugarcane and cassava which are key export products to China, Thailand and Vietnam. 

The livestock sector contributes to about 20% of the agricultural GDP. Buffaloes, cattle, poultry, and pigs are the main livestock species and are mostly raised in the free-range husbandry systems. Livestock products function as unofficial bank savings generating valuable cash income for the rural population. The fishery is one of the main sources of income and allows diet diversification for the rural population. Natural rivers and water reservoirs are the habitats of many freshwater fish species. There are several types of aquacultures in the country, including cage culture with cages made of steel frames, bamboo, net or wood; rice-fish culture in irrigated areas; pond culture in small ponds created in rural lowland areas and used just to cover family requirements. 

Aside from food and agricultural products, the most significant services that Laos exports include personal travel and transportation services, computer and information services, insurance services, and construction services. Personal travel and transportation services are also among the most important services.   

Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources: 

The Observatory of Economic Complexity – MIT (OEC): (http://atlas.media.mit.edu/en/)  

https://oec.world/en/profile/country/lao 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider. 

 

 

The plan for 2020-2025 aims to enhance the connectivity between power generation and the overall power system. Additionally, the plan for 2025-2030 focuses on improving both the interconnection from power generation to the power system and the interconnection between different power systems for the purpose of power export.   

Power stability
Power grid / network coverage	The electricity access rate in Lao PDR for 2021 reached 100.00%, representing a 0.69% growth compared to 2020. The greatest consumption is located in Vientiane municipality, which has over 200,000 consumers.
Is supply regular and constant throughout the country?	Yes
Please describe	Wherever the transmission line is available, the electrical current is stable. In case of import electricity in some provinces in the north, instability of the current is expected.
On average, how often does power supply goes out?	Once per 3 months in Vientiane and big cities and one a mother in districts
On average, how long does the outage last?	Not more than 1 day in Vientiane and big cities and 3 days in districts level.

 

Electricity and Power Summary Table
Production Unit	Type  (Hydroelectric, Thermal, etc.)	Installed  Capacity (MW)	Current Production (GWh)
Electricite du Laos	Hydroelectric	1,370	5,750
Nam Theun 2 Power Company Limited	Hydroelectric	1,070	6,000
Nam Theun 1 Power Company Limited	Hydroelectric	650	2,638
Chaleun Sekong Energy Co., Ltd.	Hydroelectric	1,804	n/a
Xe-Pian Xe-Namnoy Power Company Limited	Hydroelectric	410	1,879
Nam Ngiep 1 Power Company	Hydroelectric	272	1,546

 

Financial Services 

Laos has a variety of banks, including state-owned commercial banks, specialized banks, joint state commercial banks, private banks, subsidiary banks, and branches of foreign commercial banks. These banks are primarily located in the capital and larger towns, with some only found in the capital. Banque pour le Commerce Exterieur Lao Public, Lao Development Bank Co Ltd, and Agricultural Promotion Bank are three banks with the widest network of branches in the country, spanning from provinces to districts. The majority of banks offer a wide range of financial services, such as deposits, loans, Letter of Credit, Letter of Guarantee, settlements, foreign exchange, ATM/debit and credit cards, as well as mobile and internet banking.  

BANQUE POUR LE COMMERCE EXTERIEUR LAO PUBLIC (BCEL) 

BCEL was founded in accordance with Decision No. 129/BOL, issued on 01 November 1989, which authorized the establishment of the bank. On December 23, 2010, BCEL successfully completed its initial public offering (IPO) and changed its name to Banque Pour Le Commerce Exterieur Lao Public, as stated in the Enterprise Registration License No.0061/ERO issued on January 10, 2011 by the Department of Enterprise Registration and Management, Ministry of Industry and Commerce of the Lao PDR. The Government, represented by the Ministry of Finance, had 80% of the overall shares. 

 

Company Overview
Company Name	Banque Pour Le Commerce Exterieur Lao Public (BCEL)
Address	No01, Pangkham Street, Ban Xiengnheun, Chanthabouly District, Vientiane Lao PDR
	Available?	Comments  (max / min transfer or exchange amounts, etc.)
Has IBAN, BIC, or SWIFT number?	Yes	n/a
Provides currency exchange?	Yes	n/a
Will initiate / receive wire transfers?	Yes	n/a
Provides Loan / Credit services?	Yes	n/a
Other Comments or Key Information	n/a

 

Other Locations
Country	Service Location(s)
Laos	The bank is present in both the Vientiane capital and all 17 provinces of Laos, with a total of 20 branches, 95 service units, and 10 exchange units.
Other country	Over 100 correspondent banks around the world.

 

AGRICULTURAL PROMOTION BANK (APB)  

The Agricultural Promotion Bank (APB) was created by Prime Minister's Decree number 92/PM on June 19, 1993. It is a development bank that primarily provides funding for the agricultural and forestry sectors. 

 

Company Overview
Company Name	Agricultural Promotion Bank (APB)
Address	Kaisonphomvihan, Phakhao Village, Xaythany District, Vientiane Capital. Lao PDR
	Available?	Comments  (max / min transfer or exchange amounts, etc.)
Has IBAN, BIC, or SWIFT number?	Yes	n/a
Provides currency exchange?	Yes	n/a
Will initiate / receive wire transfers?	Yes	n/a
Provides Loan / Credit services?	Yes	n/a
Other Comments or Key Information	n/a

 

Other Locations
Region(s)	Service Location(s)
Laos	The bank is present in both the Vientiane capital and all 17 provinces of Laos, with a total of 17 branches with 92 service units country wide.
Other country	n/a

 

LAO DEVELOPMENT BANK CO LTD  

The Lao Development Bank (LDB) is a bank that operates as a joint venture between Chaleun Sekong Energy Co., LTD (70%) and the Ministry of Finance (30%). It is regulated by the Bank of the Lao PDR and adheres to the laws and regulations of the Lao PDR. Additionally, it fulfills its own responsibility towards the national socio-economic development. 

 

Company Overview
Company Name	LAO DEVELOPMENT BANK CO LTD
Address	013, Avenue Souphanouvong, Chanthabuly District, Vientiane Capital. Lao PDR
	Available?		Comments  (max / min transfer or exchange amounts, etc.)
Has IBAN, BIC, or SWIFT number?	Yes		n/a
Provides currency exchange?	Yes		n/a
Will initiate / receive wire transfers?	Yes		n/a
Provides Loan / Credit services?	Yes		n/a
Other Comments or Key Information	n/a
Other Locations
Region(s)		Service Location(s)
Laos		The bank is present in both the Vientiane capital and all 17 provinces of Laos, with a total of 19 branches with 75 service units country wide.
Other country		n/a

Clearing and Forwarding Agents 

By local standards, the freight forwarders in Laos are quite well-organized. The majority are members of LIFFA, an organization established by the Department of Transportation that has official recognition as the industry's representative and is represented on government committees. These businesses typically outsource trucking work to transport operators who own trucks and operate with very little in the way of transport assets. The major freight forwarders in Lao PDR are the holders of customs brokerage licenses. As part of their total business, they offer a customs clearance service. Numerous independent brokers focus exclusively on customs clearance and don't offer freight forwarding services. 

Construction, Material Handling & Power Generation Equipment 

Authorized dealers and intermediaries distribute Construction, Material Handling, and Power Generation Equipment nationwide.   The majority of goods are imported from neighboring nations and require advance ordering, which can be time-consuming, particularly for warehouse equipment like as pallets, forklifts, conveyors, and similar items. 

Postal and Courier Services 

The postal and courier services in Laos have had significant growth in recent years, particularly in the area of transporting small packages inside the country. This is facilitated by the presence of prominent courier service units located in every town around the country.   The package can also be sent by air if the route is open.   Additionally, DHL, FedEx, and UPS offer postal services for sending items outside of Laos. 

Printing and Publishing 

In general, there are numerous possibilities for organizations that perform printing throughout the country. Graphic design, on the other hand, is more complex. Large printing enterprises in Laos have also served and printed for government agencies and International organizations. Some of the materials were processed locally, but others had to be sent to Thailand for printing by the printing company. 

Taxi Companies 

There is a finite amount of taxi businesses in the country.   Locating a taxi service in the main urban areas of Laos is very straightforward, however availability may be limited in certain provinces.   They typically have a casual character.   Tuk Tuks are prevalent in metropolitan areas.   It is customary to pay before leaving without any reduction in price. 

Vehicle & Equipment Maintenance/Workshops 

The car and its accessories or maintenance Workshops are accessible in the urban area for both the official workshop of each branch's vehicle dealer and private and family-owned businesses. The majority of the spare parts are imported from neighboring nations such as Thailand, China, and Japan. 

Vehicle Rental 

Car rental in Laos is an excellent alternative for both operational and tourist-related needs.   Currently, renting a car in Laos is rather simple, however, it usually entails leasing a car with a chauffeur.   Individuals have the option of renting an automobile for self-driving reasons. Renters must, however, convert their Internationalinternational driving permit into a Laos driver's license.   Because of the infamous traffic system, which has repeatedly been a source of embarrassment in Laos, and the time-consuming and complex license exchange process. 

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.  

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.