Lao People's Democratic Republic and ADB
In the Spotlight
Cloud-based software is used to facilitate paper-free trade in coffee exports to Europe by the Lao People’s Democratic Republic, saving time and money.
Government ministers and senior officials attending the Greater Mekong Subregion (GMS) Seventh Economic Corridors Forum agreed on measures to promote the development of economic corridors, facilitate cross-border transport and trade, and enhance cooperation and private sector participation.
ADB has helped turn former war-torn Greater Mekong Subregion countries of Cambodia, Lao PDR, and Viet Nam into a booming tourist destination.
ADB has approved a $35 million loan to help finance a bus rapid transit system and other transport innovations to improve traffic flows in Vientiane, the fast-growing capital of the Lao People’s Democratic Republic.
Completion of the last overland link in the North-South Economic Corridor brings prosperity to poor provinces in the Lao People's Democratic Republic, a landlocked country that lies at the heart of the Greater Mekong Subregion.
The economy of the Lao People’s Democratic Republic continues to grow vigorously. An investment boom, based on natural resources and fueled by mining and exports of hydropower, has seen gross national income double since 2006. Economic growth moderated in 2014, but is still buoyant, supported by external demand and foreign direct investment. Annual average headline inflation dropped substantially in 2014, due to reduced domestic demand and a sharp decline in global oil prices. Yet the Lao PDR remains highly vulnerable to external economic shocks.
ADB assistance in the Lao PDR is consistent with the rapidly evolving development needs of a lower middle-income country.