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Laos has been slowly opening up to visitors over the past decade and it is now easy to obtain entry visas at points such as Nong Khai in Thailand (for entry to Vientiane) and Mukdahan in Thailand (For Savannakhet). This country of 6.2 million people can also be visited by air from neighbouring coutries or overland to Vietnam (Via Vinh in Vietnam to Hanoi or Ho Chi Minh city.
Laos is located in Southeastern Asia, northeast of Thailand, and west of Vietnam. Its climate is tropical monsoon; the rainy season runs from May to November; the dry season from December to Apri. The country consists of mostly rugged mountains; some plains and plateaus. Landlocked, most of the country is mountainous and thickly forested; the Mekong River forms a large part of the western boundary with Thailand.
The capital, Vientiane, is a fascinating city and retains much of the atmosphere long since lost in other Asian capitals. Reminders of the country's French past remain in its architecture and cuisine alongside the hot and spicy Lao food. Whilst Vientiane's nightlife is best described as laid back, an evening spent on the banks on the Mekong river drinking Lao Beer and sampling the local dishes is a wonderful experience.
Laos was under the control of Siam (Thailand) from the late 18th century until the late 19th century when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand.
In 1975, the Communist Pathet Lao took control of the government, ending a six-century-old monarchy. Initial closer ties to Vietnam and socialization were replaced with a gradual return to private enterprise, a liberalization of foreign investment laws, and the admission into ASEAN in 1997.
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% in 1988-2004 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. The government has sponsored major improvements in the road system. Electricity is available in only a few urban areas.
Subsistence agriculture accounts for half of GDP and provides 80% of total employment. The economy will continue to benefit from aid from the IMF and other international sources and from new foreign investment in food processing and mining. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to face lower tariffs on their exports; this may help spur growth.
Image courtesy BigPhoto
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