IOC, IPU, ITU, MIGA, NAM,
OIF, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU,
WHO, WIPO, WMO, WTO (observer)

Diplomatic representation in the US:
chief of mission: Ambassador PHIANE Philakone
chancery: 2222 S Street NW, Washington, DC 20008
telephone: [1] (202) 332-6416
FAX: [1] (202) 332-4923

Diplomatic representation from the US:
chief of mission: Ambassador Patricia M. HASLACH
embassy: 19 Rue Bartholonie, That Dam Road, Vientiane
mailing address: American Embassy Vientiane, Box V, APO AP 96546
telephone: [856] 21-26 7000
FAX: [856] 21-26 7074

Flag description:
three horizontal bands of red (top), blue (double width), and red
with a large white disk centered in the blue band

Economy Laos

Economy - overview:
The government of Laos, one of the few remaining official Communist
states, began decentralizing control and encouraging private
enterprise in 1986. The results, starting from an extremely low
base, were striking - growth averaged 6% per year in 1988-2006
except during the short-lived drop caused by the Asian financial
crisis beginning in 1997. Despite this high growth rate, Laos
remains a country with a primitive infrastructure. It has no
railroads, a rudimentary road system, and limited external and
internal telecommunications, though the government is sponsoring
major improvements in the road system with possible support from
Japan. Electricity is available in only a few urban areas.
Subsistence agriculture, dominated by rice, accounts for about half
of GDP and provides 80% of total employment. The economy will
continue to benefit from aid by the IMF and other international
sources and from new foreign investment in hydropower and mining.
Construction will be another strong economic driver, especially as
hydroelectric dam and road projects gain steam. Several policy
changes since 2004 may help spur growth. In late 2004, Laos gained
Normal Trade Relations status with the US, allowing Laos-based
producers to benefit from lower tariffs on exports. Laos is taking
steps to join the World Trade Organization in the next few years;
the resulting trade policy reforms will improve the business
environment. On the fiscal side, a value-added tax (VAT) regime,
slated to begin in 2008, will streamline the government's
inefficient tax system.

GDP (purchasing power parity):
$13.43 billion (2006 est.)

GDP (offici