LAOS

Lao People's Democratic Republic

Sathalanalat Paxathipatai Paxaxon Lao

CAPITAL: Vientiane (Viangchan)

FLAG: The national flag, officially adopted in 1975, is the former flag of the Pathet Lao, consisting of three horizontal stripes of red, dark blue, and red, with a white disk, representing the full moon, at the center.

ANTHEM: Pheng Sat Lao (Hymn of the Lao People).

MONETARY UNIT: The new kip (k) is a paper currency of 100 at (cents). There are notes of 10, 20, 50, 200, and 500 new kip. k1 = $0.00009 (or $1 = k10,751) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but older local units also are used.

HOLIDAYS: Anniversary of the Founding of the Lao People's Democratic Republic, 2 December. To maintain production, the government generally reschedules on weekends such traditional festivals as the Lao New Year (April); Boun Bang-fai (Rocket Festival), the celebration of the birth, enlightenment, and death of the Buddha (May); Boun Khao Watsa, the beginning of a period of fasting and meditation lasting through the rainy season (July); Boun Ok Watsa (Water Holiday), a celebration of the end of the period of fasting and meditation (October); and That Luang, a pagoda pilgrimage holiday (November).

TIME: 7 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Laos is a landlocked country on the Indochina Peninsula near the eastern extremity of mainland Southeast Asia. Laos occupies an area of 236,800 sq km (91,429 sq mi), extending 1,162 km (722 mi) sse–nnw and 478 km (297 mi) ene–wsw. Comparatively, the area occupied by Laos is slightly larger than the state of Utah. It is bordered on the n by China, on the e and se by Vietnam, on the s by Cambodia, on the w by Thailand, and on the nw by Myanmar, with a total boundary length of 5,083 km (3,158 mi).

The capital of Laos, Vientiane, is located along the country's southwestern boundary.

TOPOGRAPHY

The terrain is rugged and mountainous, especially in the north and in the Annam Range, along the border with Vietnam. the mountains reach heights of more than 2,700 m (8,860 ft), with Pou Bia, the highest point in Laos, rising to 2,817 m (9,242 ft) in the north-central part of the country. Only three passes cross the mountains to link Laos with Vietnam. The Tran Ninh Plateau, in the northeast, rises to between 1,020–1,370 m (3,350–4,500 ft), and the fertile Bolovens Plateau, in the south, reaches a height of about 1,070 m (3,500 ft). Broad alluvial plains, where much of the rice crop is grown, are found only in the south and west along the Mekong River and its tributaries. Of these, the Vientiane plain is the most extensive.

Except for a relatively small area east of the main divide, Laos is drained by the Mekong and its tributaries. the Mekong flows in a broad valley along the border with Thailand and through Laos for 1,805 km (1,122 mi). In its low-water phase, it is almost dry, but it rises more than 6 m (20 ft) during the monsoon period. the river is wide, but except for a navigable stretch between Vientiane and Savannakhét, rapids are numerous. Below Savannakhét and at the extreme south there are large rapids and waterfalls. Floods are common in the rainy season.

CLIMATE

Laos has a tropical monsoon climate with three main seasons. the rainy season is from May through October, when rainfall averages 127–229 cm (50–90 in). November through February is a cool, dry season. March through April is a hot, dry season, during which temperatures can be as high as 40°c (104°f). Humidity is high throughout the year, even during the season of drought. Average daily temperatures in Vientiane range from 14–28°c (57–82°f) in January, the coolest month, and from 23–34°c (73–93°f) in April, the hottest.

FLORA AND FAUNA

About 54% of Laos is covered by forest. The forests of southernmost Laos are an extension of the Kampuchean type of vegetation, while the highland forests of the north, consisting of prairies interspersed with thickets, resemble central Vietnam. Bamboo, lianas, rattan, and palms are found throughout Laos.

Roaming the forests are panthers and a dwindling number of tigers, elephants, and leopards. The elephant, until 1975 depicted on the national flag as the traditional symbol of Lao royalty, has been used throughout history as a beast of burden. A local breed of water buffalo also is universally used as a draft animal. Reptiles include cobras, geckos, kraits, and Siamese crocodiles. there are many varieties of birds, fish, and insects. As of 2002, there were at least 172 species of mammals, 212 species of birds, and over 8,200 species of plants throughout the country.

ENVIRONMENT

Soil erosion, deforestation, and flood control are the principal environmental concerns in Laos. The government seeks to control erosion by discouraging the traditional slash-and-burn agriculture practiced by many mountain tribes, and by resettling the tribes in permanent villages. Reforestation projects have been promoted by the government as a means of increasing lumber exports and of restoring valuable hardwoods to logged-out forest areas. Each person was required to plant five trees in the course of the 1981–85 economic plan. In 1986, the government prohibited the cutting of 15 different varieties of trees. At that time, forests were reportedly being consumed at a rate of 300,000 hectares (741,000 acres) per year. Between 1983 and 1993, Laos suffered a further decline of 11.3% in its forest and woodland area. From 1990–2000, the rate of deforestation was about 0.4% per year. In 2003, about 3% of the total land area was protected.

Laos has about 190 cu km of renewable water resources with 82% used in farming activity and 10% used for industrial purposes. Only 66% of city dwellers and 38% of rural citizens have access to safe drinking water. The nation's water supply has begun to decrease due to a combination of factors, among them the loss of forest land, uncontrolled agricultural practices, flooding, and drought. Pollution from fires, dust, and cars is also becoming a national problem.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 30 types of mammals, 21 species of birds, 11 types of reptiles, 4 species of amphibians, 6 species of fish, and 19 species of plants. Endangered species in Laos included the douc langur, three species of gibbon (pileated, crowned, and capped), tiger, Asian elephant, Sumatran rhinoceros, Javan rhinoceros, Thailand brow-antlered deer, kouprey, and Siamese crocodile. the Vietnam warty pig has become extinct.

POPULATION

The population of Laos in 2005 was estimated by the United Nations (UN) at 5,924,000, which placed it at number 102 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 40% of the population under 15 years of age. There were 100 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.3%, a rate the government viewed as too high. the projected population for the year 2025 was 8,712,000. The population density was 25 per sq km (65 per sq mi), but the population is unevenly spread, with the greatest concentration in the Mekong Valley.

More than 70% of the population is rural, living in some 9,000 villages. The UN estimated that 19% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 4.50%. The capital city, Vientiane (Viangchan), had a population of 716,000 in that year. Other large towns, all on or near the Mekong and its tributaries, are Savannakhét, Pakxé, Luangphrabang (the former royal capital), Muang Xaignabouri, and Ban Houayxay.

MIGRATION

There has been only limited population movement into Laos in modern times. During the late 1960s and early 1970s, under pressure of combat operations, Black Tai tribesmen moved southward into the Mekong River valley. Between 1975–90, over 360,000 Laotians fled to Thailand and China. The majority resettled and were given new lives in Western nations. To date, more than 27,000 Laotians have repatriated. In 1996, some 6,000 Laotian refugees remained in Thailand, and several hundred remained on collective farms in China. As of 1999, about 1,100 of the small number of refugees still remaining in Ban Napho camp in Thailand were determined not to have valid refugee claims. the two governments agreed that they should return to Laos, with assistance from the United Nations High Commissioner for Refugees (UNHCR). In the mid-1990s, as Laos opened up to international investment and development, Vietnamese workers began migrating to Laos—although in relatively small numbers—primarily to work in the construction industry. In 2003 Thailand arrested 19,115 Laotian unauthorized workers, and 6,098 Laotians as illegal foreigners. However, in 2004 Thailand registered 173,000 Laotians as migrant workers.

In 2004 Laotians sought refuge, 7,864 in France and 6,214 in the United States. In that same year 569 applied for asylum in Thailand and 101 in the United States. The net migration rate for 2005 was an estimated zero migrants per 1,000 population. the government views the immigration level as satisfactory, but the emigration level as too high.

ETHNIC GROUPS

About 68% of all Laotians are Lao-Loum, or lowland Lao, a people related to the people of Thailand; thought to have migrated to Laos from southwestern China in the 8th century, the LaoLoum are concentrated in the lowlands along the Mekong. On the hillsides live the Lao-Theung, or slope dwellers, a diverse group dominated by the Lao-Tai (with various subgroups, including the Black Tai), who are ethnically related to the Lao-Loum. they account for 22% of the population. At higher altitudes are the LaoSoung, or mountain dwellers, a diverse group of ethnic minorities of mainly Malayo-Polynesian or proto-Malay backgrounds. they constitute 9% of the population.

Important among the Lao-Soung, and more prosperous than most Lao because of the opium poppies they grow, are the Hmong (Meo), a people of Tibeto-Burman origin who supported the American presence until 1975 and, because of their continuing insurgency, became the targets of harassment by government and Vietnamese troops. Other important upland tribes, all with customs and religions considerably different from those of the lowland Lao, are the Ho, Kha, Kho, and Yao (Mien). Ethnic Vietnamese and Chinese account for 1% of the population.

LANGUAGES

Lao, the official language and the language of the ethnic Lao, is closely related to the language of Thailand. It is monosyllabic and tonal and contains words borrowed from Sanskrit, Pali, and Farsi. Pali, a Sanskritic language, is used among the Buddhist priesthood.

Other groups speak the Tibeto–Burman, Non-Khmer, or Miao–Yao languages. French, formerly the principal language of government and higher education, has been largely replaced by Lao. English and various ethnic languages are also spoken.

RELIGIONS

Theravada Buddhism is practiced by most of the Lao-Loum, whose daily life is shaped by its rituals and precepts. Buddhist temples, found in every village, town, and city, serve as intellectual as well as religious centers. Vientiane and Luangprabang have been called cities of thousands of temples. More than 70 pagodas were built in Vientiane alone in the 16th century, including the famous Wat Phra Keo and That Luang. Despite the major role that Buddhism, its temples, and its priests have played in Laotian life, the average lowland Lao regulates a large part of daily activities in accordance with animistic concepts. Certain spirits (phi ) are believed to have great power over human destiny and to be present throughout the material world, as well as within nonmaterial realms. Thus, each of the four universal elements (earth, sky, fire, and water) has its special phi; every road, stream, village, house, and person has a particular phi; forests and jungles are inhabited by phi. Evil phi can cause disease and must be propitiated by sacrifices.

The Lao-Theung and the Lao-Soung, including the upland tribes, are almost exclusively animists, although influenced by Buddhism to some extent. About 2% of the population are Christians, with about 60,000 Protestants and 40,000 Roman Catholics. Most Protestants are members of the Lao Evangelical Church or Seventh-Day Adventists, which are the only two officially recognized Protestant groups. Other minority religions include the Bahaism, Islam, Mahayana Buddhism, Taoism, and Confucianism.

Though religious activity was discouraged by the state from 1976 to 1979, freedom of religion has been legally guaranteed since the constitution of 1991. However, the government reserves the right to serve as the final arbiter of permissible religious activities, which the government loosely defines as those practices which serve to promote national interests. Religious affairs are overseen by the Lao Front for National Construction (LFNC), an organization of the Lao People's Revolutionary Party.

TRANSPORTATION

Lack of adequate transportation facilities continued to be a major deterrent to economic progress. Of the approximately 14,000 km (8,700 mi) of roads, only about 3,360 km (2,088 mi) were paved in 2002. Many are impassable in the rainy season. Only a single major road connects the northern and southern regions. Most of the roads were damaged by US bombing in the Vietnam war, but the main links with Vietnam (notably Highway 9, from Savannakhét to the Vietnamese port of Da Nang, and Highways 7 and 13, from Vientiane and Savannakhét to the Vietnamese port of Vinh and Ho Chi Minh City, respectively) were rebuilt with Vietnamese aid. Under the 1981–85 economic plan, 844 km (524 mi) of roads were built or improved. There are no railroads in Laos, although in 1994, the government entered into an agreement with a Thai company to build a railroad from Nong Khai in Thailand to Vientiane. In 2006, French president Jacques Chirac reported that his government would support Thai efforts to build this planned railway, which, as of that year, had not been constructed.

In 2004 there were an estimated 44 airports; only 9 of had paved runways as of 2005. Vientiane has the only international airport. Major cities in Laos are connected by air services operated by state-run Lao Aviation, founded with Soviet aid in 1976. In 1995, the government signed an agreement with China's Yunnan Airlines forming a joint venture projected to increase Yunnan's holdings of Lao Aviation to 60% while the former pays off the latter's debt. In 2003, about 219,000 passengers were carried on scheduled domestic and international airline flights.

Landlocked, Laos' only water-transport link with the outside world is via the Mekong River, which forms a large part of the border with Thailand and flows through Cambodia and Vietnam into the South China Sea. As of 2003, the Mekong is navigable for small transport craft and, with its tributaries in Laos, forms a 4,587-km (2,850-mi) inland waterway system, although rapids make necessary the transshipment of cargo. However, another 2,897 km (1,802 mi) are navigable by small craft that draw under 0.5 m. To lessen dependence on Thailand, Laos in 1977 signed an agreement with Vietnam whereby the Vietnamese port of Da Nang would replace Bangkok as the chief outlet for Laos. In 2005, Laos had one merchant vessel of 1,000 GRT or more, a cargo ship, at 2,370 GRT.

HISTORY

Although archaeological evidence indicates that settlers along the Mekong had learned agriculture, metallurgy, and pottery making by 3000 bc, little is known about the early history of the land that today bears the name of Laos. The lowland Lao are believed to be the descendants of Thai tribes that were pushed southward in the 8th century. According to tradition, the kingdom called Lan Xang ("a million elephants") was established in 756 by King Thao Khoun Lo. In 1353, it was reunified by Fa-Ngoum, who had been raised at the court of Angkor in Kampuchea and returned with a force of Khmer troops. He is also credited with the introduction of Hinayana Buddhism into Laos. Lan Xang waged intermittent wars with the Khmers, Burmese, Vietnamese, and Thai and developed an effective administrative system, an elaborate military organization, and an active commerce with neighboring countries. In 1707, internal dissensions brought about a split of Lan Xang into two kingdoms, Luangphrabang in the north (present-day upper Laos) and Vientiane in the south (lower Laos). Strong neighboring states took advantage of this split to invade the region. Vientiane was overrun and annexed by Siam (Thailand) in 1828, while Luangphrabang became a vassal of both the Chinese and the Vietnamese. In 1893, France, which had already established a protectorate over what is now central and northern Vietnam, extended its control to both Vientiane and Luangphrabang, and Laos was ruled by France as part of Indochina. Although French control over Luangphrabang took the nominal form of a protectorate, the French colonial administration directly ruled the rest of Laos, legal justification being ultimately provided in the Lao-French convention of 1917.

During World War II, Laos was occupied by Japan. After the Japanese proclaimed on 10 March 1945 that "the colonial status of Indochina has ended," the king of Luangphrabang, Sisavang Vong, was compelled to issue a declaration of independence. the nationalist Free Lao (Lao Issarak) movement deposed the monarch soon after, but French forces reoccupied Laos, and on 27 August 1946, France concluded an agreement establishing him as king of Laos and reimposing French domination over the country. In May 1947, the king established a constitution providing for a democratic government. On 19 July 1949, Laos nominally became an independent sovereign state within the French Union. Additional conventions transferring full sovereignty to Laos were signed on 6 February 1950 and on 22 October 1953. All special economic ties with France and the other Indochinese states were abolished by the Paris pacts of 29 December 1954. In the meantime, Vietnamese Communist (Viet-Minh) forces had invaded Laos in the spring of 1953. A Laotian Communist movement, the Pathet Lao (Lao State), created on 13 August 1950 and led by Prince Souphanouvong, collaborated with the Viet-Minh during its Laotian offensive. Under the Geneva cease-fire of 21 July 1954, all Viet-Minh and most French troops were to withdraw, and the Pathet Lao was to pull back to two northern provinces, pending reunification talks with the national government under the leadership of Souvanna Phouma (Souphanouvong's half-brother). The negotiations were completed on 2 November 1957, and the Pathet Lao transformed itself into a legal political party called the National Political Front (Neo Lao Hak Xat). However, a political swing to the right that led to the ouster of Souvanna Phouma as prime minister, coupled with the refusal of the Pathet Lao forces to integrate into the Royal Lao Army, led to a renewal of fighting in May 1959.

A bloodless right-wing coup in January 1960 was answered in August by a coup led by paratroops, under the command of Capt. Kong Le; in the ensuing turmoil, Souvanna Phouma returned to power. After a three-day artillery battle that destroyed much of Vientiane, right-wing military elements under Gen. Phoumi Nosavan and Prince Boun Oum occupied the capital on 11 December. A new right-wing government under Prince Boun Oum was established, but further military reverses, despite a heavy influx of US aid and advisers, caused the government to ask for a cease-fire in May 1961. An international conference assembled in Geneva to guarantee the cease-fire. All three Laotian political factions agreed on 11 June 1962 to accept a coalition government, with Souvanna Phouma as prime minister. On 23 July, the powers assembled at Geneva signed an agreement on the independence and neutrality of Laos, which provided for the evacuation of all foreign forces by 7 October. The United States announced full compliance, under supervision of the International Control Commission (ICC), set up in 1954. Communist forces were not withdrawn. Fighting resumed in the spring of 1963, and Laos was steadily drawn into the role of a main theater in the escalating Vietnam War. the Laotian segment of the so-called Ho Chi Minh trail emerged as a vital route for troops and supplies moving south from the Democratic Republic of Vietnam (DRV), also known as North Vietnam, and was the target for heavy and persistent US bombing raids. While the Vientiane government was heavily bolstered by US military and economic support, the Pathet Lao received key support from the DRV, which was reported to have 20,000 troops stationed in Laos by 1974. Efforts to negotiate a settlement in Laos resumed with US backing in 1971, but a settlement was not concluded until February 1973, a month after a Vietnam peace agreement was signed in Paris. On 5 April 1974, a new coalition government was set up, with equal representation for Pathet Lao and non-Communist elements. Souvanna Phouma, 73 years old and in failing health, stayed on as prime minister, while Prince Souphanouvong was brought closer to the center of political authority as head of the newly created Joint National Political Council.

The Pathet Lao had by this time asserted its control over three-fourths of the national territory. Following the fall of the US backed regimes in Vietnam and Cambodia in April 1975, the Laotian Communists embarked on a campaign to achieve complete military and political supremacy in Laos. On 23 August, Vientiane was declared "liberated" by the Pathet Lao, whose effective control of Laos was thereby secured. On 2 December 1975, the Lao People's Democratic Republic (LPDR) was established, with Prince Souphanouvong as president and Kaysone Phomvihan as prime minister. King Savang Vatthana abdicated his throne, ending the monarchy that had survived in Laos for 622 years. Elections for a new National Assembly were called for April 1976; however, voting was put off indefinitely, amid reports of civil unrest and sabotage. A Supreme People's Council was convened, meanwhile, with Prince Souphanouvong as chairman, and was charged with the task of drafting a new constitution.

During the late 1970s, the Communists moved to consolidate their control and socialize the economy. Private trade was banned, factories were nationalized, and forcible collectivization of agriculture was initiated. "Reeducation" camps for an estimated 40,000 former royalists and military leaders were established in remote areas; as of 1986, the government maintained that almost all the inmates had been released, but Amnesty International claimed that about 5,000 remained. A 25-year friendship treaty with Vietnam, signed in July 1977, led to closer relations with that country (already signaled by the continued presence in Laos of Vietnamese troops) and with the former USSR, and also to the subsequent dismissal from Laos of all Chinese technicians and advisers. China, for its part, began to give support and training to several small antigovernment guerrilla groups. With the economy in 1979 near collapse, in part because of severe drought in 1977 and flooding in 1978, the Laotian government slowed the process of socialization and announced a return to private enterprise and a readiness to accept aid from the non-Communist world. Throughout the 1980s armed opposition to the government persisted, particularly from the Hmong hill tribe rebels. At the Fourth Party Congress of the Lao People's Revolutionary Party (LPRP), in December 1986, a "new economic management mechanism" (NEM) was set up, aiming at granting increased autonomy in the management of formerly state-run enterprises to the private sector.

In 1988 the Lao national legislature, the Supreme People's Assembly (SPA), adopted new election laws and the first elections since the formation of the LPDR in 1975 were held. Local and provincial elections were held in 1988, and on 27 March 1989 national elections took place for an enlarged Supreme People's Assembly. In March 1991 the Fifth Party Congress of the LPRP changed Kaysone Phomvihan's title from prime minister to president, elected a new 11-member politburo, pledged to continue economic reforms in line with free-market principles while denying the need for political pluralism, and changed the national motto by substituting the words "democracy and prosperity" for "socialism." the newly elected SPA drafted a constitution adopted on 14 August 1991. The constitution provided for a national assembly functioning on principles of "democratic centralism," established the LPRP as the political system's "leading organ," created a presidency with executive powers, and mandated a market-oriented economy with rights of private ownership.

President Kaysone Phomvihan, longtime LPRP leader, died on 21 November 1992. A special session of parliament on 24 November 1992 elected hard-line Communist Nouhak Phoumsavan as the next president. Gen. Khamtai Suphandon, who had been prime minister since 15 August 1991, remained in that post. National Assembly elections were held in December 1992. One day before these elections, three former officials who called for a multiparty democracy and had been detained in 1990 were sentenced to 14 years imprisonment. The National Assembly convened in February 1993 and approved government reorganization designed to improve public administration. On 9 January 1995, longtime leader Prince Souphanouvong died, unofficially marking an end to Laos' long dalliance with hard-line Marxism. Although the NEM had initiated an opening up to international investment and improved relations with the rest of the world, there remained elements of the old guard in positions of power. With the death of Souphanouvong, the only old-time hard-line Marxist still in power as of 1996 was the country's president, Nouhak Phoumsavan. Khamtai Siphandon, prime minister and party chief, was more powerful than Nouhak and is largely credited with exerting a moderating influence on the hard-liner. Nonetheless, there remains a strongly conservative mindset among the politboro members that still pulls the government back from economic flexibility or any hint of political liberalization.

Laos has actively improved its already "special relations" with Vietnam and Cambodia, while always seeking to improve relations with Thailand, the People's Republic of China (PRC), and the United States. Periodic meetings are held to promote the cooperative development of the Mekong River region by Laos, Thailand, Vietnam, and Cambodia. Laos and the People's Republic of China restored full diplomatic relations in 1989 and are now full fledged trading partners. Mutual suspicions, characterizing the relationship between Laos and Thailand, improved with agreements to withdraw troops and resolve border disputes, and agreements between the United Nations High Commissioner for Refugees (UNHCR) to repatriate or resettle nearly 60,000 Lao refugees in Thailand. Laos has cooperated with the United States in recovering the remains of US soldiers missing in action in Laos since the Vietnam War and in efforts to suppress drug-trafficking. the US Department of State objects to Laos' restrictions on free speech, freedom of assembly and religious freedom. US Assistant Secretary of State Stanley Roth commented in March 2000 that Laos was unlikely to gain Most Favored Nation trading status unless it accounted for the fate of two naturalized US citizens, Hmong activists who disappeared in Laos during 1999. The debate over whether to grant Laos normal trade relations status was ongoing as of early 2003.

On 26 February 1998, Khamtai Siphandon was elected president, and he was reelected in March 2001. Beginning in 2000, Vientiane was hit by a series of bomb blasts, attributed to antigovernment groups based abroad. Bombings targeted crowded markets and buses in the city during 2003. Triggered by Thailand's closing of refugee camps on its side of the Laos-Thai border, tens of thousands of exiles were forced to return home. Most were expected to be jailed or executed for their antigovernment activities, but instead, the government encouraged their peaceful settlement among the lowland population. Certain right-wing guerrilla factions among the Hmong, long fighting the Pathet Lao, subsequently reacted violently to the government's pacification efforts to integrate moderate Hmong villagers. On 6 February 2003 near Vang Vieng, a bus and two Western bicyclers were attacked by gunmen, who killed 12 people. Militant Hmong were blamed for the attack. The government launched a major military crackdown on Hmong insurgents during 2004. Hmong was accused of causing hundreds of civilians' deaths in rebel-held areas.

On 24 February 2002, parliamentary elections were held, but all but one of the 166 candidates were from the Lao People's Revolutionary Party (LPRP). The LPRP won 108 of 109 seats in the National Assembly. Laos hosted the annual ministerial summit of the Association of Southeast Asian Nations (ASEAN) in November 2004. Under heavy security, the ASEAN ministers met in Vientiane for two days and a significant free trade agreement was signed by ASEAN and China.

GOVERNMENT

Under the constitution of 1947 (as subsequently amended), Laos was a parliamentary democracy with a king as the nominal chief executive. The monarch was assisted by a prime minister (or president of the Council of Ministers), who was the executive and legislative leader in fact. The prime minister and cabinet were responsible to the national assembly, the main repository of legislative authority, whose 59 members were elected every five years by universal adult suffrage. With the establishment of the Lao People's Democratic Republic in December 1975, governmental authority passed to a national congress made up of 264 delegates elected by newly appointed local authorities. The congress in turn appointed a 45-member Supreme People's Council to draw up a new constitution. Pending the completion of this task effective power rested with Kaysone Phomvihan, a longtime Pathet Lao leader who headed the government as chairman of the Council of Ministers and was also secretary-general of the Lao People's Revolutionary (Communist) Party.

Prince Souphanouvong, the head of state and president of the Supreme People's Council since 1975, left office in October 1986 because of poor health. He was replaced first by Phoumi Vongvichit, a former vice chairman of the Council of Ministers, and later by Sisomphon Lovansay, a former vice president of the Supreme People's Council. The Lao national legislature, the Supreme People's Assembly (SPA), adopted new election laws in 1988, and the first national elections under the new government took place in March 1989 (local elections were held in 1988). Kaysone Phomvihan was elected president and Khamtai Siphandon was named prime minister. The newly elected SPA set out to draft a constitution, which was finished in mid-1990, and adopted on 14 August 1991 by the SPA. Khamtai Siphandon was elected president in 1998, and reelected in 2001. The executive branch consists of the president, prime minister and two deputy prime ministers, and the Council of Ministers (cabinet) who are appointed by the president with the approval of the National Assembly. the legislative branch is the 109-member National Assembly which is elected by universal suffrage for a period of five years. The judicial branch is the Supreme People's Court Leaders. The constitution calls for a strong legislature elected by secret ballot, but most political power continues to rest with the party-dominated council of ministers, who are much aligned with the military. Laos held celebrations of the 30th year of Communist rule on 23 August 2005. the next national elections were scheduled for 2007.

POLITICAL PARTIES

Elections to the National Assembly were first held in 1947. In the elections of 4 May 1958, the Pathet Lao's newly organized National Political Front (Neo Lao Hak Xat) won 9 of the 21 seats in contention; 4 were won by the Santiphab faction, a neutralist group allied with them, and 8 were obtained by the Nationalist and Independent parties. After the elections, the Nationalists and Independents combined to establish a new political party, the Rally of the Lao People (Lao Luam Lao), which held 36 of the 59 Assembly seats. The remaining 23 seats were divided among the National Political Front (9), the Santiphab grouping (7), the Democrats (3), the National Union (2), and unaffiliated deputies (2). the leaders of the Rally, upon formation of that party, announced its purpose to be the defense of Laos against "an extremist ideology contrary to the customs and traditions of the Lao country" and the establishment of true unity and independence of the nation against "subversion from within and without." The Front then and later called for a reduction in the size of the armed forces and of US military aid. In December 1959, because of emergency conditions, election of new Assembly deputies was postponed until April 1960. When the balloting was finally held, the opposition Committee for the Defense of the National Interests won a landslide victory. The Committee leader, Phoumi Nosavan, then formed a new political party, the Social Democrats (Paxa Sangkhom).

In August 1960, a coup led by Kong Le brought down the government. After a period of struggle, Souvanna Phouma, who had earlier established the Neutralist Party (Lao Pen Kang) in order to build a broader popular following, became prime minister on 11 June 1962. In his 19-man cabinet, 4 posts were held by rightwing politicians, 11 by Neutralists, and 4 others by Pathet Lao adherents. The National Assembly came to the end of its five-year term in 1965. Political instability prevented the holding of national elections, and a provisional assembly was convened to amend the constitution so as to provide a means for maintaining the legislature. The result was a general election held on 18 July, with the franchise limited to civil servants, teachers, merchants, and village headmen. The new National Assembly was convened on 16 August, with the Neutralists retaining 13 seats, the Social Democrats 11, the Rally 8, and various independents 27. the endorsement gained in the limited polling of 1965 was not sufficient to sustain Prime Minister Souvanna Phouma for long, and new voting—the first real and effective election in a decade—took place on 1 January 1967. About 60% of 800,000 eligible voters went to the polls in 1967, despite the Pathet Lao charge that the balloting was illegal. Souvanna Phouma's United Front took 32 of 59 seats in the National Assembly voting.

In the last years of the constitutional monarchy, the gulf between the Pathet Lao and the enclave of rightists and neutralists that held governmental power widened appreciably. the pressures of war—both the civil strife within Laos and the larger conflict pressed by the external forces of the United States and the DRV—had thwarted the effectiveness of normal political processes. General elections held on 2 January 1972 were confined to government-controlled areas, with representatives for the Pathet Lao provinces elected by refugees from those regions. Despite the narrow range of political choices available to voters, only 20 of the 60 National Assembly deputies were reelected, reflecting a growing uneasiness both with the war and with the increasing evidence of corrupt practices among government officials. Despite rightwing pressures from within the National Assembly, Souvanna Phouma—whose neutralist policy was favored by both the United States and the DRV—retained the position of prime minister. the withdrawal of US military support for the Thieu regime in the Republic of Vietnam (South Vietnam) was followed, in April 1974, by the creation of a new coalition in Vientiane that gave equal political footing to the Pathet Lao. The National Assembly, which had become little more than a forum for disputes among rightwing factions, was dissolved by King Savang Vatthana on 13 April 1975, an act that signaled the end of domestic political opposition to the inexorable progress of the Pathet Lao.

The formation of the Lao People's Democratic Republic in December 1975 effectively established the Communist Lao People's Revolutionary Party (LPRP) (Phak Pasason Pativat Lao), the political incarnation of the Pathet Lao movement, as the sole political force in Laos. Kaysone Phomvihan, general secretary of the LPRP, was named head of government, and Prince Souphanouvong head of state. The LPRP plays the leading role in the Lao Front for National Reconstruction, which sought to promote socialism and national solidarity. the Third Party Congress of the PPPL, and the first since the party assumed control, was held in Vientiane in April 1982. The congress, whose 228 delegates represented a party membership of 35,000, elected an enlarged Central Committee with 49 full and 6 alternate members. the Central Committee reelected Kaysone as general secretary. the Fourth Party Congress, held in Vientiane in December 1986, established the "new economic management mechanism."

In 1988 the Supreme People's Assembly (SPA) adopted new elections laws and elections were held the next year—the first since 1975. In 1991, the Fifth Party Congress changed Prime Minister Phomvihan's title to president, a post he held until his death one year later. Elevated to the post of prime minister was Khamtai Suphandon, a generally pro-free market antidemocratic pragmatist of the Singaporean variety. Suphandon had for a time studied Marxism in Hanoi, but in his position as prime minister was considered essentially a transitional figure between the old guard and a new generation of leaders. After Phomvihan's death in 1992, a special session of the SPA elected an old-guard communist, Nouhak Phoumsavan, to the presidency.

Elections for the SPA were again held in 1992 but they were marred by the sentencing of three pro-democracy activists to 14 years in prison on the day before balloting. By 1996, Laos' leadership was made up primarily of party functionaries, regardless of the makeup of the SPA. Prime Minister Suphandon held considerable power as did Deputy Prime Minister Khamphoui Keoboualapha, who also served as the administrator of the State Committee for Planning and Cooperation (CPC), considered by many analysts to be a government within a government.

A 1998 election retrenched the hard-liners, as "technocrats" vanished from the preapproved slate, replaced with old style LPRP functionaries. This was viewed as a reaction to the social tensions (such as crime and corruption) arising with economic openness, as well as an attempt to reestablish centralized control over provincial matters.

The Seventh Party Congress, which took place in March 2001, reelected all eight surviving members of the nine-member politburo. The decision was a clear sign that the party had opted for continuity rather than change.

Several governments-in-exile have been set up by former ministers of pre-1975 regimes, and overseas Hmongs and other dissidents have formed opposition organizations. A young pretender to the throne, Prince Soulivong Savang, has rallied support in exile. Some Hmong groups and others have continued a low-level insurgency in rural Laos. Underground antigovernment sentiment may be on the rise among the urban intellectuals.

As of late 2005, parties other than the LPRP continued to be proscribed. A glimpse of popular discontent emerged with reports of an October 1999 demonstration in Vientiane, led by students and professors calling for democracy and human rights. the protest was quickly suppressed, and Khamtai's government disavowed all knowledge of its occurrence.

LOCAL GOVERNMENT

Laos consists of 16 provinces (khoueng), one special zone, Xaisomboun, and the municipality of Vientiane. The provinces are subdivided into districts (muong ), townships (tasseng ), and villages (ban ). The president appoints provincial governors and mayors of municipalities. The prime minister appoints deputy provincial governors and deputy mayors and district chiefs. Since 1975, local administration has been restructured, with elected people's committees in the villages functioning as basic units. Both suffrage and candidacy are open to citizens 18 and over. Village heads administer at the village level. Lack of control over local party members in the rural areas appears to be a source of worry for the politburo, with its implications of corruption and even potential unrest.

JUDICIAL SYSTEM

The 1991 constitution provides for freedom of speech, assembly, and religion, although, in practice, organized political speech and activities are severely restricted. The reality of religious freedom is equally illusory, with imprisonment of Christian activists in recent years. The constitution contains provisions designed to guarantee the independence of judges and prosecutors, but in practice the courts appear to be subject to influence of other government agencies. Provincial courts are at the next level as appellate courts. There is also a central Supreme Court in Vientiane. In 1993 the government began publishing an official gazette in which all laws and regulations are disseminated. A bar association was formed in 1996 to strengthen the legal profession and individual rights to counsel. Rising crime rates place a burden on Laos's under funded and understaffed legal system. Amnesty International and other human rights groups have called attention to deaths in custody, torture, and substandard conditions in the Laotian prison system.

ARMED FORCES

In 2005 the number of active personnel in the armed forces of Laos totaled 29,100. Of that total, the Army accounted for 25,600, while the Air Force had 3,500 personnel. The Army's roster of equipment included 25 main battle tanks, 10 light tanks, 50 armored personnel carriers, and 82 artillery pieces (all towed). the Air Force had 22 combat capable aircraft, all of which were MiG-21 fighters. Although Laos did not have a formal navy, the Army did have an estimated 600-man marine section that operated 4 amphibious landing craft and 52 patrol/coastal boats. Laotian paramilitary forces consisted of a village home guard known as the Militia Self-Defense Forces, which numbered more than 100,000 members. The defense budget in 2003 (the latest year for which data was available) totaled $37.8 million.

INTERNATIONAL COOPERATION

Laos, a UN member since 14 December 1955, belongs to ESCAP and several nonregional specialized agencies, such as FAO, UNESCO, UNIDO, ILO, WHO, IMF, and the World Bank. the nation participates in the Asian Development Bank, the Colombo Plan, and G-77. It has observer status with the WTO. In 1997, Laos joined ASEAN and AFTA.

Since 1961, Laos has been a member of the Nonaligned Movement. Laos's main diplomatic, economic, and military allies have been Vietnam and the former USSR. In 1977, Laos signed a 20year treaty of cooperation with Vietnam. In 2003, Laos and Thailand signed a cooperation agreement that addresses issues of labor and counternarcotics. In environmental cooperation, Laos is part of the Convention on Biological Diversity, the Kyoto Protocol, the Montréal Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification. Laos is also a member of the Mekong River Commission with Cambodia, Thailand, and Vietnam.

ECONOMY

One of the world's poorest and least-developed nations, Laos is overwhelmingly agricultural, with 85% of the population still engaged in subsistence farming. Because industrialization is minimal, Laos imports nearly all the manufactured products it requires. Distribution of imports is limited almost entirely to Vientiane and a few other towns, and even there, consumption has been low. the hostilities of the 1960s and 1970s badly disrupted the economy, forcing the country to depend on imports from Thailand to supplement its daily rice requirements.

With the curtailment of hostilities in 1975, the development of a unified political structure offered an immediate advantage. the government began in late 1975 to pursue in earnest a variety of projects to repair and improve the infrastructure and make use of the country's ample mineral, lumber, and hydroelectric resources. During 1978–80, the government gave priority to postwar reconstruction, collectivization of agriculture, and improvements in rice production. In 1994 a liberalized Foreign Investment Law was promulgated as the government sought greater economic integration regionally and internationally.

By 1997, Laos had made modest improvements. In international investment, it had opened up its economy considerably. In April 1997, the government signed a trade and cooperation agreement with the EC. In July 1997, Laos became a full member of ASEAN and AFTA. In 1998 the government applied for membership in the WTO. More than $5 billion in foreign investment had been made by more than 500 investors, mainly from other ASEAN countries. The government had also made considerable progress in the construction of a modern road network linking Laos to China and Vietnam. The country also announced plans for a second bridge into Thailand and the construction of its first railroad, linking Vientiane with Nong Khai in Thailand.

However, the Asian financial crisis dealt the economy a series of blows from which it has not yet recovered. Laos's economy was particularly dependent on Thailand, source of 42% of its foreign investment as well as 45% of imports and 37% of export purchases, which was severely affected by the financial crisis. From June 1997 to June 1999, the Laotian currency, the kip, lost 87% of its value. Growth, which averaged 7% for the six years 1992 to 1997, dropped to 4.8% in 1998, the lowest since 1991. Foreign investment dropped from $179 million in 1996 to $45.3 million in 1998. Growth increased in 1999, to 7.3%, propelled by growth of over 8% in both industry and agriculture, and continued at moderated rates of 5.7% and 6.4% in 2000 and 2001. However, high inflation rates and low declining foreign investments have persisted. Inflation in 2000 was 25% and though it eased to 10% with lower growth in 2001, it was back to double digits, 12% in 2002 and a projected 15% in 2003. Foreign direct investment dropped to $23.9 million in 2001. By late 2002, the kip had fallen to more than 10,000 to one dollar from its level of 1,171 to one dollar in June 1997. In February 2003, the administration of US president George W. Bush submitted legislation supporting the granting of normal trade relations (NTR) to Laos.

In 2004, the GDP growth rate was 5.1%, up from 5.8% in 2003; in 2005, the economy expanded at an estimated 7.2%. the inflation rate fluctuated, and at 10.5% in 2004, it did pose some problems to the economy. Despite encouraging growth rates, Laos remained a mainly subsistence agriculture economy, with a poor infrastructure and dependent on foreign aid. In late 2004, Laos gained Normal Trade Relations with the United States, which allows local producers to export at lower tariffs.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Laos's gross domestic product (GDP) was estimated at $11.9 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $1,900. the annual growth rate of GDP was estimated at 7.2%. the average inflation rate in 2005 was 9.4%. It was estimated that agriculture accounted for 48.6% of GDP, industry 25.9%, and services 25.5%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $1 million. Foreign aid receipts amounted to $299 million or about $53 per capita and accounted for approximately 14.3% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Laos totaled $1.58 billion or about $28 per capita based on a GDP of $2.1 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings.

It was estimated that in 2002 about 40% of the population had incomes below the poverty line.

LABOR

The estimated labor force was 2.8 million in 2002. In the absence of additional data, it was estimated that 85% were subsistence farmers, with most of the remainder in the public sector as of 1997. In that year the unemployment rate was approximately 5.7%.

Labor is organized into a single Federation of Lao Trade Unions (FLTU) which is controlled by the Lao People's Revolutionary Party (LPRP), the authoritarian governmental body. In 2002, the vast majority of the 78,000 members of the FLTU were in the public sector. There is no right to organize, strike, or bargain collectively. Labor disputes have so far been infrequent and the desperate economic situation means that workers have little bargaining power.

Children under the age of 15 are forbidden by law from working, but many children work for their families in farms or in shops due to extreme economic hardship. The daily minimum wage was $0.53 in 2002. The labor code limits the workweek to 48 hours with at least one day of rest.

AGRICULTURE

In 2003, Laos's sown-field area was estimated at 1,031,000 hectares (2,548,000 acres), or 4.5% of the country's total area. Agriculture accounts for 51% of production and as much as 77% of employment. The main crop is rice, almost entirely of the glutinous variety. Except in northern Laos, where some farmers grow dry rice in forest clearings or on hillsides, most Lao are wet-rice farmers. The total area of rice plantings in 2004 was estimated at 770,000 hectares (1,903,000 acres), up from 554,000 hectares (1,369,000 acres) in 1996. Yields, which are relatively low, could be raised substantially through wider use of irrigation and fertilizers. Production, which averaged 609,000 tons annually during 1961–65, rose to 2,529,000 tons in 2004. Less important crops include corn (favored by some upland tribes and stressed by the government as a means of increasing livestock production), manioc, peanuts, and soybeans. The main commercial crops, emphasized by the government as part of its export drive, are coffee, cotton, and tobacco. Also grown are cardamom, tea, ramie, hemp, sugar, bananas, and pineapples. In 2004, the trade deficit for agricultural products was $99.8 million. The mountain peoples have been known to grow large quantities of opium poppies, sold to dealers in the plains. In 2004, the UN estimated that 22,800 households in 846 villages were engaged in opium production, which was estimated at 846 tons that year.

ANIMAL HUSBANDRY

Cattle raising is important, especially in the southern plains and in the valleys of the Noy, Banghiang, and Don rivers. Much of the livestock population was killed in the final stages of the civil war that ended in 1975. As of 2005, livestock included an estimated 1,300,000 head of cattle, 1,130,000 buffalo, 1,750,000 hogs, and 21,000,000 chickens. Livestock products in 2005 included 28,000 tons of pork, 22,500 tons of beef and veal, 16,000 tons of poultry, and 12,800 tons of eggs.

FISHING

Edible fish, found in the Mekong and other rivers, constitutes the main source of protein in the Laotian diet. The prize catch is the pa beuk, weighing 205 kg (450 lb) or more. Despite the abundance of fish and their important contribution to the Laotian subsistence economy, there has been no systematic commercial fishery development. The total catch in 2003 was 94,700 tons, with aquaculture accounting for 69%.

FORESTRY

Timber is a major resource and one of Laos's most valuable exports. About 54% of the total area is forested, and about half of the forested area is commercially exploitable. The principal timberproducing areas are around Champasak, Savannakhét, Khammouan, and Vientiane. Muang Paklay, in western Laos, is noted for its teak. Exploitation is easiest in areas near the Mekong River, which facilitates transportation. Elephants and oxen are used in most forestry operations. Aside from timber, firewood, and charcoal, forestry products include benzoin and benzoin bark, bamboo, copra, kapok, palm oil, rattan, various resins, and sticklac. Production of roundwood totaled an estimated 6.3 million cu m (223 million cu ft) in 2004; over 80% of the annual output is burned as fuel. Sawn wood output in 2004 was about 182,000 cu m (6.4 million cu ft); wood-based panels, 13,000 cu m (459,000 cu ft).

MINING

Laos' mining sector is dominated by tin, gypsum, gold, and limestone. However, mining is the country's smallest, sector, contributing only 0.3% of the country's gross domestic product (GDP) in 2004. Although much of the country remained unprospected, the nature of the terrain has led to ardent speculation about the nation's mineral resources. Other mineral resources thought to possibly exist in Laos were magnesium, antimony, bismuth, copper, lead, manganese, potash, iron ore, silica sand, and tungsten. Also produced in 2004 were barite, cement, gemstones, rock salt, silver, bituminous coal, and zinc. Copper, gemstones, gold, iron ore, lead, potash, tin, and zinc were earmarked for further exploration. Undiscovered resources of iron ore, potash, and rock salt were believed to be substantial.

Tin mine output in 2004 was estimated at 340 metric tons, down from 360 metric tons in 2003. Gypsum production, by the State Gypsum Mining Operation from the Dong Hene Mine, in Savannakhét Province, was estimated at 102,000 metric tons for 2004, up from 101,727 metric tons in 2003. The mine's proven ore reserves were estimated to be 18 million tons. Although gold production ceased in 1998–2002, it was resumed in 2003, of which 5,368 kg was produced in 2003, with an estimated 4,000 kg produced in 2004. Important iron deposits, with reserves of 68% ore estimated at 11 billion tons, have been discovered on the Plain of Jars near Xiangkhoang. A substantial deposit of low-grade anthracite coal has been found at Saravan. Output of gemstones in 2004 was estimated at 800,000 carats, down from 2,302,973 carats in 2003. Tungsten and copper deposits and gold-bearing alluvials produced a limited income for the local population but have not been exploited by modern industrial methods.

ENERGY AND POWER

In 2002, Laos had an electrical generating capacity of 0.639 million kW. Production of electricity in 2002 totaled 3.562 billion kWh, of which almost 98% was hydropower and the remainder from conventional thermal sources. Consumption of electricity in 2002 was 3.013 billion kWh. The nation has an estimated hydroelectric potential of 12,500,000 kW, most of which is undeveloped. The largest power project is the Nam Ngum Dam, located on the Mekong 72 km (45 mi) from Vientiane. Construction began in 1969, with the first stage completed in 1971 and the second stage in 1978. Annual output at Nam Ngum is around 900 million kWh, with about 90% of the electricity produced being supplied to Thailand. An additional 3,000 kW of capacity comes from several smaller hydroelectric facilities. About 17,000 kW is provided by diesel-powered generators throughout Laos.

Laos has no known deposits of oil or natural gas, or refining capacity. In 2002, refined oil imports and demand averaged 2,850 barrels per day, each. There were no imports of natural gas in 2002. However, there was limited coal production for that year, totaling 298,000 short tons, of bituminous coal, with consumption equaling output.

INDUSTRY

Industrial development is rudimentary. There are some small mining operations, charcoal ovens, a cement plant, a few brick works, carpenter shops, a tobacco factory, rice mills, some furniture factories, and more than two dozen sawmills. Industrialization plans center on cotton spinning, garment manufacturing, hydroelectric power projects, brewing, coffee and tea processing, and plywood milling. New resource developments, including the Nam Ngum hydroelectric project and the Vientiane sylvite field, have aided industrial growth. Handicrafts account for an important part of the income of many Laotians. Some villages or areas specialize in certain types of products: silk fabrics, baskets, lacquerware, and gold and silver jewelry and ornaments. Bricks, pottery, iron products, and distilled beverages are made in individual villages. Manufacturing is largely confined to the processing of agricultural—food and natural fibers—and forestry products.

From 1998 to 2001, industry grew at an average annual rate of 8.7%. The growth is in large part attributable to governments ponsored construction projects, particularly hydroelectric power projects. By 2002, hydroelectric power had taken the place of garments as the country's leading industrial export, and its leading source of foreign exchange. Most manufactures, however, continued to be imported; exports regularly only amount to 60% of imports. At the end of 2002 the main industrial project under consideration was the construction of the $1.3 billion hydroelectric dam on the Nam Theum River, the power from which would be exported to Thailand. The project was far from realization, lacking both a purchase agreement with the state agency in Thailand, and the World Bank guarantee for the investors.

Industry accounted for 25.9% of economic output in 2005, and was seconded by services with a 25.5% share. Agriculture continued to be the main economic sector, with a 48.6% share in the GDP, and with an 80% share in the labor force. the industrial production growth rate was 13% in 2005, almost double the GDP growth rate—an indicator that industry is, now, one of the country's main economic engines.

SCIENCE AND TECHNOLOGY

Like many developing nations, Laos depends primarily on external expertise in science and technology. Sisavangvong University, founded in 1958 at Vientiane, has faculties of agriculture, forestry, and irrigation, and of medicine, a technical college, and a polytechnic. Regional technical colleges are located in Luang Pradang, Savannakét, and Champasak. In 1987–97, science and engineering students accounted for 20% of college and university enrollments.

DOMESTIC TRADE

Before the Pathet Lao came to power, there was a growing market in Laos for capital and consumer goods. Vientiane was the wholesale distributing point for much of the country. In late 1975, private trade was banned and many small traders and businessmen—including Chinese, Japanese, Pakistani, Thai, and Vietnamese—fled the country. The new government subsequently made it clear that the trend toward consumerism would be reversed in favor of a production-oriented society. The Pathet Lao entered directly into the distribution and sale of essential commodities, such as rice and sugar, and prices were brought under control. In 1979, however, the ban on private trade was lifted, and consumer items, which had all but disappeared from circulation, were once again available.

In the countryside, barter replaces money as the principal method of exchange. Markets are held at regular intervals, generally one day a week, at central villages or smaller towns. Once or twice a year, lowland farmers barter cloth and handicraft products with the mountain peoples for cereals, deer and rhinoceros horns, and ivory. Certain items recognized as media of exchange include tea, opium, tobacco, salt, silver, and gold. As of 1999, subsistence farming accounted for about 51% of the GDP, employing about 85% of the nation's workforce.

The New Economic Mechanism (NEM), a set of economic reforms instituted in 1986 across all sectors of the economy, has begun to demonstrate results in establishing a market-based economy. The government freed the market price of rice and other food staples in 1986, increasing agricultural output despite severe climatic conditions. Later reforms—floating the national currency, the kip, and freeing interest rates—stimulated a market-based economy and controlled inflation. Major land reforms in 1988 included the freedom to sell products at market-determined prices. Growth from these stimuli is demonstrated by the doubling of private shops in Vientiane and abundant fairly-priced goods in the markets. In a 1989 agreement with the World Bank and the International Monetary Fund, the government initiated reforms toward privatization and monetary reforms.

The usual hours of business are from 8 am to 4 pm, Monday through Friday. Some factories and private companies extend the workday to 5 pm and factories are permitted to maintain a six day workweek if desired. Banking hours are 8 to 10:30 am and 2 to 3:30 pm, Monday through Friday.

FOREIGN TRADE

The political reorganization of 1975 brought changes in Laos's foreign trade pattern, because regional alignments were shifting and because the aid needed to finance the nation's imports was no longer available from the United States. In the 1980s, much of the nation's trade was subsidized by the former USSR. The export of

electricity, the sale of overflight rights to foreign airlines, wood products, green coffee, and tin are sources of foreign earnings. In 1991 Laos's largest export earner, logging, was banned pending steps to prevent further destruction of the forests. there are 11 million hectares of mature forests in Laos, and about 4.4 million are considered commercially exploitable. The ban on log exports was modified to allow the export of already cut logs and logs from stipulated cutting areas. Foreign aid grants exceeded export earnings in 1991. That year, export revenue decreased by 22% from 1990 because of a reduction of timber exports and a decline (caused by drought) in the production of electricity for export. At the same time the cost of imports increased by 62%, owing to the newly adopted free trade measures, which ended restrictions on imported goods.

In 2005, exports reached $379 million (FOB—Free on Board), while imports grew to $541 million (FOB). In 2004, principal exports included garments, electricity, timber and wood products, and coffee; the bulk of them went to the Thailand (19.3%), Vietnam (13.4%), France (8%), Germany (5.3%), and the United Kingdom (5%). Imports included consumption goods, construction and electrical equipment, materials for garment industry, machinery and equipment, and mainly came from Thailand (60.5%), China (10.3%), Vietnam (7.1%), and Singapore (4%).

BALANCE OF PAYMENTS

Laos has experienced severe trade deficits since independence. From 1963 through mid-1975, substantial deficit financing was provided through the Foreign Exchange Operations Fund (FEOF), an agency backed largely by the United States but also receiving funds from Japan, France, the United Kingdom, and Australia. In June 1975, the flight of gold and hard currencies from the country forced the government to ban exports of gold and silver bullion. A devaluation of the kip had the effect of further inflating its price, with the black market exchange rate soaring. In the 1980s, financing

came mainly from the former USSR, with smaller amounts from multilateral agencies. Since the collapse of communism in Europe, Laos has lost this vital means of support. Even with its recent attraction of international investment ($5 billion from 1988–94), it still relies heavily on aid. Primary sources are Scandinavia, the United States, and Japan. In 1995, the IMF announced a $17 million loan to the country, its second in a series of structural adjustment loans. Laos received a total of $290 million in economic aid in 1998. Total external debt stood at $2.53 billion in 1999. In 2001, the IMF approved a $40.2 million three-year arrangement with Laos, to reduce poverty and support the government's economic reform program. The Lao government is attempting to diversify its trading and investment partners, particularly among other Asian nations.

The International Monetary Fund (IMF) reported that in 2001 Laos had exports of goods totaling $311 million and imports totaling $528 million. The services credit totaled $166 million and debit $32 million. The US Central Intelligence Agency (CIA) reported that in 2000 the purchasing power parity of Laos's exports was $325 million while imports totaled $540 million resulting in a trade deficit of $215 million.

Exports of goods and services totaled $361million in 2004, up from $359 million in 2003. Imports grew from $482 million in 2003, to $506 million in 2004. The resource balance was consequently negative, and on a downward path—from -$123 million in 2003 to -$145 million in 2004. A different trend was registered for the current account balance, which improved from -$93 million in 2003, to -$45 million in 2004. Foreign exchange reserves (excluding gold) grew to $223 million in 2004, covering more than five months of imports.

BANKING AND SECURITIES

The central bank, the Bank of the Laotian People's Democratic Republic, regulates a rapidly expanding sector comprising 13 national and foreign-owned banks under the terms of the Commercial Bank and Financial Institutions Act of January 1992. Most of the wholly foreign-owned banks are Thai (such as the Thai Military Bank and Siam Commercial) and many of the joint-venture banks are backed by Thai financiers (such as the Joint Development Bank). The central bank continued to receive technical assistance from multilateral lending agencies, and was gradually strengthening the prudential framework. The banks were believed to be more efficient. The largest commercial bank, established in 1953, is the Bank of Indochina.

The large-scale flight of foreign currency that accompanied the Pathet Lao's ascendancy to power led the new government to shut down Vientiane's banks in September 1975. officials subsequently announced the expropriation of most private accounts, claiming they were the property of former rightists and "traitors."

Banking reforms of the 1988–89 period opened Laos to foreign banks. Banks in Laos include: Banque Pour le Commerce Exterieur Lao, Joint Development Bank, Nakhonelouang Bank, and the Vientiane Commercial Bank.

All banks now provide basic business services and offer a range of deposit and credit facilities. Interest rates are increasingly responsive to market conditions but tend to remain close to rates set by the central bank. Public confidence in the banking system as measured by the level of domestic capital mobilization is still low. Until 1988 the wholly state-controlled system serviced the needs of the command economy, offering uncompetitive rates of interest to savers or producers in need of regular credit. Most families continued to save by investing in gold and jewelry. the system suffered severe liquidity problems in 1990–91 when the "privatization" of former state-owned enterprises was at its peak: old debts were not repaid and new capital arriving as a result of the opening of the economy to foreign investors was coming in too slowly. Laos was badly hit in 1997 by the Asian financial crisis, leading to further liquidity problems in 1998. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $41.5 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $286.4 million. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 35%.

There is no stock exchange.

INSURANCE

There are no private insurance firms.

PUBLIC FINANCE

The civil war rendered normal budgetary procedures impossible, the budget being covered largely by US aid and monetary inflation. Deficit financing continued in the 1970s and 1980s, covered mostly by foreign aid from communist nations. With the collapse of this support, however, Laos has increasingly looked to foreign investment capital and Western lending agencies for financial support. Beginning in 1994, the IMF initiated an annual program of loans to assist the country with a structural adjustment program. It lent Laos $17 million in 1995. Still, 31% of the 1995 budget was international aid.

The US Central Intelligence Agency (CIA) estimated that in 2005 Laos's central government took in revenues of approximately $319.3 million and had expenditures of $434.6 million. Revenues minus expenditures totaled approximately -$115.3 million. Total external debt was $2.49 billion.

TAXATION

In 1977, the government introduced a progressive agricultural tax on production. The tax revenues were to be used to develop forestry and mining without the need for outside aid, but the tax had the unwanted side effect of discouraging production by some of the largest landowners and slowing the achievement of self-sufficiency in food. The 1992–93 budget included a new profits tax and a law requiring foreign firms engaged in construction projects to pay taxes. The agricultural tax was replaced by a land tax, and consumption taxes were raised on fuel oil, liquor, beer, and tobacco. The 1989 economic reforms included a new flat tax rate of 20% on profits for foreign-owned companies. The top personal income tax rate is 40% with the marginal rate for the average tax payer 10%. The top corporate tax rate is 35%.

CUSTOMS AND DUTIES

Import duties are determined on a specific and ad valorem basis and range from 2–40%, mostly not exceeding 25%. Compensatory duties are imposed on imports of commodities in competition with local goods. A general internal tax is collected on the CIFplus-duties value of most imports. Certain commodities—including automobiles, radios, alcoholic beverages, tobacco, and sugar—are subject to special excise taxes of up to 104%. A duty-free unloading zone for Laotian imports is located in the Vietnamese port of Da Nang.

FOREIGN INVESTMENT

Before 1975, Laotian foreign economic relations were conducted under the FEOF and the US Commodity Import Program, under which dollar exchange was provided; Laos in turn allocated dollars to local importers, who then made kip payments to the government for the purchase of foreign goods. There was little direct foreign investment, however. From 1975 until the mid-1980s, all foreign capital has come in the form of development assistance.

Reforms, as part of the New Economic Mechanism (NEM) initiated in 1986, included the introduction of a the Laos Foreign Investment Code and Decree in 1989, which established the Foreign Investment Management Cabinet (FIMC). The FIMC oversees the Committee for Investment and Foreign Cooperation (CIFC) with power to authorize and approve investment. All investment proposals, no matter how small, must be submitted to the CIFC of the FIMC, which passes it for screening by the relevant line ministries. The Code and Decree focus on three types of transactions: contractual business, joint ventures, and wholly foreign-owned enterprises. Investment is now allowed in the areas of agriculture, forestry, industry, communications, transport, service, and tourism, for projects using the indigenous raw materials and natural resources of Laos. The Decree details the permitted sectors of foreign investment and outlines restrictions and prohibitions. For instance, environmentally damaging investment, investors with overwhelming debt, long-term projects making great use of imported materials, and enterprises that would compete with local entrepreneurs are prohibited and/or discouraged. Hindrances to foreign investment are poor legal and physical infrastructure and a lack of skilled labor and capital. Additional disadvantages in the landlocked country are high transportation costs and limited domestic and foreign markets. In 1994 a new foreign investment law streamlined regulations and tax structures and included a flat corporate tax rate of 20%. The contractual business mode of foreign investment was eliminated. Although the law stipulated that the preapproval process for new investment was to take only 60 days, delays in fact have been a year or more.

Since 1986, foreign investment in Laos has totaled an estimated $5.7 billion, about 75% in hydroelectric power projects. the Asian financial crisis, precipitated by Hong Kong's return to Chinese rule in June 1997, dealt foreign investment flows a blow from which it had not recovered. FDI fell from $170 million in 1996 to $45.3 million in 1998. In 1999, the Thai company that had been granted the concession to build Laos's first railroad in May 1997, backed out of the deal declaring it economically nonviable. A small uptick in FDI to $51.5 million in 1999 was followed by sharp declines in $33.9 million in 2000 and a negligible $23.9 million in 2001 in the face of the continuing depreciation of the currency. the depreciation feeds into a vicious cycle, because with the government's need to conserve its hard currency reserves, it has become increasingly difficult for foreign investors to convert their kip income into foreign exchange. The government in 2002 was rationing foreign exchange, with priorities given to fuel, food, and medicines.

Thailand has been Laos's biggest foreign investor, accounting for about 42% of total FDI. In 2001, Laos and Thailand signed an agreement for the construction of a second bridge across the Me Kong, a project abandoned by a Japanese company in 1998 after the concession had been granted in 1996. Two Thai companies are also shareholders in the proposed $1.2 billion 650 MW Nam Theum River hydroelectric power project. The other partners are the Laotian government and the French company, Electicite de France, the largest shareholder. China's Yunnan Province contracted to develop sylvite deposits in the Vientiane Basin. Twelve sylvite-bearing zones have been identified, with an estimated total of 10 billion tons.

ECONOMIC DEVELOPMENT

The National Plan and Foreign Aid Council was established in June 1956 to prepare a general plan for the development of Laos and to set up a series of five-year plans. In view of its limited capital resources, the government sought increased private foreign investment, continued US governmental economic assistance, and help from international monetary bodies and the Colombo Plan organization. An economic plan drafted by the Laotian government in 1962 was never fully implemented, however, owing to internal instability. Little of the infrastructure for public works, industry, and mining that was abandoned in 1961 has been resumed. Although a major goal of the 1969–74 economic and social development plan, completion of the Nam Ngum Dam, was fulfilled, a host of other targets had to be abandoned because of disruption stemming from the war. US aid to Laos began in 1955 and continued until the United States' pullout in 1975. During this period, the Laotian economy became almost totally dependent on US aid, which amounted to over $900 million in nonmilitary loans and grants and $1.6 billion in military assistance.

Following the Pathet Lao takeover in 1975, efforts were made to restructure the Laotian economy along socialist lines. the source of most foreign assistance shifted to China between 1975 and 1979. By 1979, however, with the economy reduced to a virtual standstill because of poor harvests, rapid inflation, and the absence of private incentives, the government abandoned central planning for a mixed model of a centrally coordinated amalgam of state-run enterprises, cooperatives, and private ventures.

Laos's first five-year plan (1981–85) after the removal of the Pathet Lao government envisioned increases of 65–68% in the gross social product, 23–24% in agricultural production, and 100–120% in industrial production, as well as completion of repairs on major highways and waterways. During this period the source of aid again shifted, this time to the USSR, Vietnam, and their allies. Aid from Council for Mutual Economic Assistance (CMEA) countries totaled $90 million in 1985. Among non-Communist nations, Japan, Australia, Sweden, and the Netherlands have also furnished assistance. In 1985, the US ban on aid was lifted, largely because of Laotian cooperation in accounting for US military personnel missing in action in Laos during the Vietnam War. Aid from international agencies totaled $183.1 million between 1946 and 1986.

The targets for the first five-year plan were largely not met, as per capita income fell to $100 and inflation rose to 30% in 1985. Failure was ascribed to an overly rigid central planning approach and in August 1986, as a major part of the second five-year plan (1986–90), the New Economic Mechanism (NEM) was introduced. The New Economic Mechanism (NEM) approved in 1986 (based on chin tanakan may "new thinking") introduced free enterprise initiatives including decentralized decision making, deregulation of pricing and financial systems, and promotion of domestic and international trade and foreign investment. Reforms have been introduced in phases. In 1988 land use reforms and market determined prices were introduced. In 1989 the tax system was modified, the Foreign Investment Code and Decree was implemented, the banking system was restructured, and the privatization of state economic enterprises commenced. Creation of a national taxation system and a customs administration are aimed at increasing government revenue. The Ministry of Industry and Primary Resources, the Economic Planning Unit, which monitors existing and new businesses, and the Economic Development Board (EDB), which assists in the establishment of new industries, facilitate foreign investment in most sectors of the economy. Incentives offered to encourage the development of industrial and commercial enterprises include allowing 100% foreign ownership, emphasized exportation of food products, strengthening of economic management, rehabilitation of routes to seaports and rural feeder roads, reform of general education and training, and development of small- and medium-scale projects.

The third five-year plan (1991–95) continued previous policies of infrastructure improvement, export growth, and import substitution. Four sectors were considered priority areas for future income for Laos: mining and energy; agriculture and forestry; tourism; and service, as a way-station and service center between China, Vietnam, and Cambodia. Laos has untapped mineral resources and proven reserves of gold, gemstones and iron ore. Pulp and paper tree plantations would be substituted for the export of timber and agricultural products to serve the Thai market. Based on Thailand's experience, the government recognizes that mass tourism involves environmental degradation, yet the opening of the Mittaphap (Friendship) Bridge over the Mekong between Laos and Thailand (1994) seemed to open an opportunity for both trade and tourism. A second bridge was approved in 1996 but the Japanese company holding the concession backed out in 1998. In 2002 the second bridge project was revived with an agreement with a Thai company. In 1993 three western oil companies, Enterprise Oil and Monument Oil, both from the United Kingdom, and Hunt Oil of Dallas, engaged in exploration for oil and gas in Laos. These projects, handicapped by inadequate geological maps, unexploded ordnance, tough terrain, encounters with the remnants of the anticommunist insurgency movement, tropical and dietary illness, and the potential expense of drilling and pipeline construction for transport to the Vietnamese coast, had not produced any substantial discoveries. However, two major hydroelectric projects, the Nam Thuen Dam on a tributary of the Mekong in Khammouan province, and the Xeset dam in southern Laos were completed, and produce electricity sold to Thailand.

At the sixth party congress, held in March 1996, Laotian officials debated the country's slow pace of opening up to the international investment community. By that year, the country had allowed more than 500 foreign investors, in a variety of sectors, to either establish or buy (in whole or in part) Laotian businesses. the majority of $5 billion (75%) was invested in hydroelectric power. In February 1997, Laos joined ASEAN, though some raised questions about its ability to afford even to attend all the organization's 200 or so annual meetings. Balance of payments problems had emerged almost as soon as the economy opened up to foreign trade and investments, with imports regularly running about 40% above exports. By 1997, Laos had entered into two standby arrangements with the IMF, a one year arrangement under the Structural Adjustment Facility (SAF), and a three year arrangement under the Extended Structural Adjustment Facility (ESAP). The credit line for the ESAP arrangement amounted to about $49 million and ran until 7 May 1997. The next month Hong Kong returned to Chinese rule precipitating the Asian financial crisis that was to have devastating effects of Laos's economic development ambitions. From June 1997 to June 2002 the kip depreciated from 1,171 to more than 10,000 to one US dollar. Direct foreign investment (DFI) dropped from $179 million in 1997 to $23.9 million in 2001. In the first six months of 2002, investment flows from ASEAN countries, formally the source of the nearly 60% of FDI, fell to zero. A possibility of some relief from the downward spiral of inflation and dwindling investment was in the likelihood that Laos would be voted normal trade relations (NTR) status in 2003 by the US Congress in line with legislation submitted by the administration of US president George W. Bush in 2003. NTR would reduce US tariffs on Laotian imports from an average of over 40% to about 3%, and allow for the implementation of bilateral trade and investment agreement with the United States. In turn, this would open the way for the World Bank to issue guarantees for foreign investment projects in Laos.

The healthy growth rates from 2004 and 2005 were expected to remain stable throughout 2006 and 2007. The main growth engine continued to be the industrial sector, and mining and construction in particular. Agriculture remained vulnerable to finicky weather conditions, but the government has committed itself to offer help to farmers. Tourism is a sector with strong potential but its immediate future was negatively influenced by security concerns and a still weak infrastructure.

SOCIAL DEVELOPMENT

By almost any measure, Laos is one of the world's most impoverished nations. Food intake does not meet basic requirements; there are virtually no sanitary facilities; and contamination of drinking water is widespread. Almost no families own cars, and bicycles and radios are considered luxuries. In general, the lowland Lao have the highest living standards, with lower standards prevailing among the upland tribes. The majority of the population engages in subsistence farming, and the country is heavily reliant on foreign aid. the first social insurance system was implemented in 2001. There is a special program for public employees. Employees in enterprises with ten or more employees are covered by work injury insurance.

Although the constitution establishes equal rights for women, they have traditionally been subservient to men and have generally been discouraged from obtaining an education. However, the government claims that it has encouraged women to assume a larger role in national life, and girls are increasingly attending school. It has been reported that in urban areas, working women have higher incomes than their male counterparts. Violence against women, including domestic violence, is not widespread. The Family Code provides women with equal inheritance and marriage rights. Trafficking in women and girls for the sex trade persisted, but in 2004 legislation was passed to provide protection from these activities.

Minority highland tribes have limited ability to influence government decisions. The highland Hmong tribe, furthermore, reports instances of discrimination and harassment. The Law on Nationality grants greater citizenship rights to the Chinese and Vietnamese minorities.

Political dissent is not tolerated, and detention without due process is not uncommon. Prison conditions are harsh, and the government suppresses the freedoms of speech, assembly, and association and restricts freedom of religion.

HEALTH

The use of Western medicine has improved health generally and reduced the incidence of malaria and smallpox specifically, but high infant mortality and a variety of health problems remained. Most urban areas, including Vientiane, lack pure water and sanitary disposal systems. In 2000, 90% of the population had access to safe drinking water and 46% had adequate sanitation. In parts of Laos, malaria—the most serious health threat—is known to affect the majority of children. In 1995, there were 1,365 new cases of cholera. Other health problems are acute upper respiratory infections (including pneumonia and influenza), diarrhea and dysentery, parasites, yaws, skin ailments, various childhood diseases, hepatitis, venereal disease, and tuberculosis. Common diseases have been malaria, measles, and leprosy. In 1999, there were 171 reported cases of tuberculosis per 100,000 inhabitants. In the mid1990s, a UNICEF survey found iodine deficiencies and goiter to be common problems in rural areas of Laos. Programs to increase iodine levels via salt intake were being instituted. An estimated 25% of school-age children were reported to have goiter. Children up to one year of age were vaccinated against tuberculosis, 69%; diphtheria, pertussis, and tetanus, 48%; polio, 57%; and measles, 73%. Vaccination rates were 56% for DPT and 71% for measles. The prevalence of underweight children was 44%, greater than the average of developing countries in South East Asia.

As of 2004, there were an estimated 59 physicians, 103 nurses, and 5 dentists per 100,000 people. Health care expenditure was estimated at 2.5% of GDP. Average life expectancy in 2005 was estimated at 55.08 years and infant mortality was estimated at 85.22 per 1,000 live births. The total fertility rate has remained nearly constant over the last years. The fertility rate in 2000 was five children per woman during her childbearing years. the overall mortality rate in 2002 was estimated at 12.7 per 1,000 people; the maternal mortality rate in 1998 was 650 per 100,000 live births.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 1,700 people living with HIV/AIDS in the country. There were an estimated 200 deaths from AIDS in 2003.

HOUSING

The typical house is rectangular, built entirely of wooden planks and bamboo, with a thatched roof, and is raised off the ground on wooden pilings 1–2 m (3–6 ft) high. There is a critical housing shortage in the towns, and many dwellings are substandard. As of 2000, 90% of the population had access to improved water sources and 46% had access to improved sanitation.

EDUCATION

Education in Laos is compulsory for five years of primary education. This is followed by three years of lower secondary and three years of upper secondary studies. At this stage, students may choose to continue to a three-year technical school or higher technical college. The academic year runs from September to July.

In 2001, about 7% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 85% of age-eligible students. The same year, secondary school enrollment was about 35% of age-eligible students. It is estimated that about 74% of all students complete their primary education. the student-to-teacher ratio for primary school was at about 31:1 in 2003.

There are three universities in the country: the National University of Laos, Souphanouvong University, and Champasack University. There were also regional technical colleges and several teacher training colleges. In 2003, about 5% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2004 was estimated at about 68.7%, with 77% for men and 60.9% for women.

As of 2003, public expenditure on education was estimated at 2.8% of GDP, or 11% of total government expenditures.

LIBRARIES AND MUSEUMS

The National Library (Vientiane), with volumes in French, Lao, and English, is the nation's largest library. In addition, a Buddhist institute owns a number of classical manuscripts. Many excellent traditional works of art and architecture may be seen in Vientiane and Luangphrabang. Of particular interest in the latter city is the former royal palace and the Prabang (Golden Buddha), which was brought to Laos from Cambodia in the days of Fa-Ngoum. Also in Vientiane is the Museum of Religious Art. the Luang Prabang National Museum opened in 1976.

MEDIA

Beginning in 1992 telephone owners were able to direct dial internationally, and private facsimile machines were permitted. In 2003, there were an estimated 12 mainline telephones for every 1,000 people. The same year, there were approximately 20 mobile phones in use for every 1,000 people.

All communications, including the radio network, are operated by the government. Regular radio broadcasts were begun from Vientiane in 1968 and are now carried by Lao National Radio. Most broadcasts are in Lao, but government news broadcasts are also in English, French, and other languages. Domestic television service from Lao National TV began in 1983; in addition, programs are available by satellite from the former USSR, and it is possible to pick up Thai broadcasts. As of 1999 there were 9 AM and 4 FM radio stations, and 4 television stations. In 2003, there were an estimated 148 radios and 52 television sets for every 1,000 people. The same year, there were 3.5 personal computers for every 1,000 people.

The press is government-controlled. The sole news agency is the Laos News Agency; the only foreign news bureaus are those of the former USSR and Vietnam. As of 2002, there were two daily newspapers, Vientiane Mai (New Vientiane ), with a circulation of 2,500; and Khao San Pathet Lao (Laos Newsletter, published in French and English as well as Lao), with a circulation of 1,200. Pasason (the People ) is a monthly publication with a 2002 circulation of 28,000. the Vientiane Times, published in English is available twice a week.

Although there are constitutional provisions for freedom of speech and the press, the government is said to exert broad control over the exercise of these rights. All domestically produced newspapers, radio, and television are controlled by the Ministry of Information, which reacts harshly to expressions of political dissent.

ORGANIZATIONS

The National Chamber of Commerce and Industry is located in Vientiane. The Lao People's Revolutionary Party and its allied social and political groups in the Lao Front for National Reconstruction have dominated Laotian life. The cooperative movement has been intensively developed. There is also a Lao Unified Buddhists' Association. The Mekong River Commission serves an important role in working toward sustainable development in the region. The Lao Medical Association promotes research and education on health issues and works to establish common policies and standards in healthcare. There are several sports associations promoting amateur competition in such pastimes as tennis, badminton, tae kwon do, and track and field. The Red Cross is active.

TOURISM, TRAVEL, AND RECREATION

The main tourist destinations are the capital, Vientiane, and Luang Prabang. Facilities are limited in other parts of the country. Vientiane is popular for its Buddhist pagodas, French colonial architecture, and landmarks. The city of Luang Prabang is located at the junction of the Nam Khan and Mekong Rivers in the North. Great views of temples and the land are seen from Mount Phousi in the center of the city.

In 2003, there were 636,361 visitors who arrived in Laos. Of these visitors, almost 60% came from Thailand. there were 12,289 hotel rooms with 18,877 beds that same year. Valid passports and visas are required for entry into Laos. Visas can be obtained upon arrival at most border crossings. If purchased upon arrival, the visa is valid for up to 15 days. Visas purchased through a Lao embassy are valid for up to 30 days.

In 2005, the US Department of State estimated the daily cost of staying in Laos at $130.

FAMOUS LAOTIANS

One of the most cherished figures in Laotian history is Fa-Ngoum, who unified Lan Xang in the 14th century. Another dynastic personage still revered is the monarch Sethathirat, in whose reign (1534–71) the famous That Luang shrine was built. Chao Anou (r.1805–28) is remembered for having fought a war to recover Laotian independence from the Siamese (Thais) and for having restored Vientiane to a glory it had not known since the 16th century. Important 20th-century figures include Souvanna Phouma (1901–84), former prime minister; Prince Souphanouvong (1902–95), a half-brother of Souvanna Phouma, leader of the Pathet Lao and president of Laos from 1975 to 1986; and Kaysone Phomvihan (1920–1992), former chairman of the Council of Ministers.

DEPENDENCIES

Laos has no territories or colonies.

BIBLIOGRAPHY

Castle, Timothy N. At War in the Shadow of Vietnam: U.S. Military Aid to the Royal Lao Government, 1955–1975. New York: Columbia University Press, 1993.

Chan, Sucheng. Hmong Means Free: Life in Laos and America. Philadelphia: Temple University Press, 1994.

Evans, Grant. A Short History of Laos: The Land In Between. London, Eng.: Orion, 2003.

Hamilton-Merritt, Jane. Tragic Mountains: The Hmong, the Americans, and the Secret Wars for Laos, 1942–1992. Bloomington: Indiana University Press, 1993.

Kremmer, Christopher. Bamboo Palace: Discovering the Lost Dynasty of Laos. New York: HarperCollins, 2003.

Leibo, Steven A. East and Southeast Asia, 2005. 38thed. Harpers Ferry, W.Va.: Stryker-Post Publications, 2005.

Mansfield, Stephen. Lao Hill Tribes: Traditions and Patterns of Existence. New York: Oxford University Press, 2000.

Pyle, Richard. Lost over Laos: A True Story of Tragedy, Mystery, and Friendship. Cambridge, Mass.: Da Capo Press, 2003.

Stuart-Fox, Martin. Historical Dictionary of Laos. Lanham, Md.: Scarecrow Press, 2001.

Zasloff, Joseph J., and Leonard Unger (eds.). Laos: Beyond the Revolution. New York: St. Martin's Press, 1991.

Laos

Compiled from the September 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Lao People’s Democratic Republic

PROFILE

PEOPLE

HISTORY

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS

U.S.-LAO RELATIONS

TRAVEL

PROFILE

Geography

Area: 236,800 sq. km. (91,430 sq. mi.); slightly larger than Utah.

Cities: Capital—Vientiane (2005 pop. est. 698,318). Other principal towns—Savannakhet, Luang Pra-bang, Pakse, Thakhek.

Terrain: rugged mountains, plateaus, alluvial plains.

Climate: tropical monsoon; rainy season (May to November); dry season (November to April).

People

Nationality: Noun and adjective—Lao (sing. and pl.).

Population: (2005) 5.6 million.

Annual growth rate: (2005) 2.5%.

Ethnic groups: Lao-Tai Language Family (8 ethnic groups) 64.9%; Mon-Khmer Language Family (32 ethnic groups) 25.4%; Hmong-lu Mien (2 ethnic groups) 8.5%; Other ethnic groups (including Vietnamese and Chinese) 0.2%; Unknown: 1%.

Religions: Buddhism: 66.8%; Others (including Animism: 30.9%; Christianity: 1.5%; Unknown (including Baha’i and Muslim) 0.7%

Languages: Lao (official), French, English, and various ethnic languages.

Education: Literacy—53% (World Bank est.).

Health: (2005) Infant mortality rate—82.2/1,000. Life expectancy—55 years (World Bank est.)

Work force: (2.77 million, 2005) Agriculture—78.5%; industry and services—21.5% (2005).

Government

Type: Communist state.

Government branches: Executive—President (head of state); Chairman, Council of Ministers (prime minister and head of government); 10-member Politburo; 52-member Central Committee. Legislative—115-seat National Assembly. Judicial—district, provincial, and a national Supreme Court.

Political parties: Lao People’s Revolutionary Party (LPRP)—only legal party.

Political subdivisions: 16 provinces, one special region, and Vientiane prefecture.

Economy

GDP: (2005 est.) $2.5 billion.

Per capita income: (2004) $390.

GDP growth rate: (2005 est.) 7.2%.

Natural resources: Hydroelectric power, timber, and minerals.

Agriculture: (45.5% of GDP, 2005 est.) Primary products—glutinous rice, coffee, corn, sugarcane, vegetables, tobacco, ginger, water buffalo, pigs, cattle, poultry, sweet potatoes, cotton, tea, and peanuts.

Industry: (28.7% of GDP, 2005 est.) Primary types—garment manufacturing, electricity production, copper, gypsum, and tin mining, wood and wood processing, cement manufacturing, agricultural processing, and tourism.

Industrial growth rate: (2005 est.) 13%.

Services: (2005 est.) 25.8.% of GDP.

Trade: Exports (2005 est.)—$379 million: gold and copper, garments, electricity, wood and wood products, coffee and other agricultural products, rattan, and tin. Major markets—Thailand, Vietnam, France, and Germany. Imports (2005 est.)—$541 million. Major imports—fuel, food, consumer, goods, machinery and equipment, vehicles and spare parts. Major suppliers—Thailand, China, Vietnam, Singapore.

PEOPLE

Laos’ population was estimated at 5.6 million in 2005, dispersed unevenly across the country. Most people live in valleys of the Mekong River and its tributaries. Vientiane prefecture, the capital and largest city, had about 698,000 residents in 2005. The country’s population density was 27/sq. km.

About half the country’s people are ethnic Lao, the principal lowland inhabitants as well as the politically and culturally dominant group. The Lao are descended from the Tai people who began migrating southward from China in the first millennium A.D. Mountain tribes of Miao-Yao, Austro-Asiatic, Tibeto-Burman —Hmong, Yao, Akha, and Lahu —and Tai ethno linguistic heritage are found in northern Laos. Until recently, they were known as Lao Sung or highland Lao. In the central and southern mountains, Mon-Khmer tribes, formerly known as Lao Theung or mid-slope Lao, predominate. Some Vietnamese and Chinese minorities remain, particularly in the towns, but many left in two waves—after partial independence in the late 1940s and again after 1975.

The predominant religion is Theravada Buddhism. Animism is common among the mountain tribes. Buddhism and spirit worship coexist easily. There also are small numbers of Christians and Muslims.

The official and dominant language is Lao, a tonal language of the Tai linguistic group. Mountain tribes speak an assortment Mon-Khmer and Hmong-lu Mien languages. French, once common in government and commerce, has declined in usage, while knowledge of English—the language of the Association of Southeast Asian Nations (ASEAN)—has increased in recent years.

HISTORY

Laos traces its first recorded history and its origins as a unified state to the emergence of the Kingdom of Lan Xang (literally, “million elephants”) in 1353. Under the rule of King Fa Ngum, the wealthy and mighty kingdom covered much of what today is Thailand and Laos. His successors, especially King Setthathirat in the 16th century, helped establish Buddhism as the predominant religion of the country.

By the 17th century, the kingdom of Lan Xang entered a period of decline marked by dynastic struggle and conflicts with its neighbors. In the late

18th century, the Siamese (Thai) established suzerainty over much of what is now Laos. The region was divided into principalities centered on Luang Prabang in the north, Vientiane in the center, and Champassak in the south. Following their colonization of Vietnam, the French supplanted the Siamese and began to integrate all of Laos into the French empire. The Franco-Siamese treaty of 1907 defined the present Lao boundary with Thailand.

During World War II, the Japanese occupied French Indochina, including Laos. King Sisavang Vong of Luang Prabang was induced to declare independence from France in 1945, just prior to Japan’s surrender. During this period, nationalist sentiment grew. In September 1945, Vientiane and Champassak united with Luang Prabang to form an independent government under the Free Laos (Lao Issara) banner. The movement, however, was short-lived. By early 1946, French troops reoccupied the country and conferred limited autonomy on Laos following elections for a constituent assembly.

During the first Indochina war between France and the communist movement in Vietnam, Prince Souphanouvong formed the Pathet Lao (Land of Laos) resistance organization committed to the communist struggle against colonialism. Laos was not granted full sovereignty until the French defeat by the Vietnamese and the subsequent Geneva peace conference in 1954. Elections were held in 1955, and the first coalition government, led by Prince Souvanna Phouma, was formed in 1957. The coalition government collapsed in 1958, amidst increased polarization of the political process. Rightist forces took over the government.

In 1960, Kong Le, a paratroop captain, seized Vientiane in a coup and demanded the formation of a neutral-ist government to end the fighting. The neutralist government, once again led by Souvanna Phouma, was not successful in holding power. Rightist forces under Gen. Phoumi Nosavan drove it from power later that same year. Subsequently, the neutralists allied themselves with the communist insurgents and began to receive support from the Soviet Union. Phoumi Nosavan’s rightist regime received support from the U.S.

A second Geneva conference, held in 1961-62, provided for the independence and neutrality of Laos. Soon after accord was reached, the signatories accused each other of violating the terms of the agreement, and with superpower support on both sides, the civil war soon resumed.

Although it was to be neutral, a growing American and North Vietnamese military presence in the country increasingly drew Laos into the second Indochina war (1954-75). For nearly a decade, Laos was subjected to extremely heavy bombing as the U.S. sought to destroy the portion of the Ho Chi Minh Trail that passed through eastern Laos.

In 1972, the communist People’s Party renamed itself the Lao People’s Revolutionary Party (LPRP). It joined a new coalition government in Laos soon after the Vientiane ceasefire agreement in 1973. Nonetheless, the political struggle among communists, neutralists, and rightists continued.

The fall of Saigon and Phnom Penh to communist forces in April 1975 hastened the decline of the coalition in Laos. Several months after these communist victories, the Pathet Lao entered Vientiane. On December 2, 1975, the king abdicated his throne and the communist Lao People’s Democratic Republic (LPDR) was established.

The new communist government imposed centralized economic decision-making and broad security measures, including control of the media and the arrest and incarceration of many members of the previous government and military in “re-education camps.” These draconian policies and deteriorating economic conditions, along with government efforts to enforce political control, prompted an exodus of lowland Lao and ethnic Hmong from Laos. About 10% of the Lao population sought refugee status after 1975, many of whom resettled in third countries, including the United States. From 1975 to 1996, the U.S. resettled some 250,000 Lao refugees from Thailand, including 130,000 Hmong.

Over time, the Lao Government closed the re-education camps and released most political prisoners. By the end of 1999, more than 28,900 Hmong and lowland Lao had voluntarily repatriated to Laos—3,500 from China and the rest from Thailand. Through the Office of the United Nations High Commissioner for Refugees (UNHCR), the International Organization for Migration (IOM), and non-governmental organizations, the U.S. has supported a variety of reintegration assistance programs throughout Laos. UNHCR monitored returnees for a number of years and has reported no evidence of systemic persecution or discrimination against returnees per se. UNHCR closed its Laos office at the end of 2001.

GOVERNMENT AND POLITICAL CONDITIONS

The only legal political party is the Lao People’s Revolutionary Party (LPRP). The head of state is President Choummaly Sayasone. The head of government is Prime Minister Bouasone Bouphavanh. Government policies are determined by the party through the all-powerful ten-member Politburo and the 52-member Central Committee. Important government decisions are vetted by the Council of Ministers.

Laos adopted its Constitution in 1991. The following year, elections were held for a new 85-seat National Assembly with members elected by secret ballot to 5-year terms. The National Assembly, which has added seats at every election, approves all new laws, although the executive branch retains the authority to issue binding decrees. The most recent elections took place in June 2006, when the National Assembly was expanded to 115 members.

Laos has an expanding legal system but is governed largely through the issuance of decrees. Of note, in July 2002, the government promulgated Prime Ministerial Decree 92 governing religious practice. Since the end of the Indochina conflict, a low-level insurgency against the regime has continued. The incidents have included a series of bombings in the capital during the summer of 2000 and renewed spikes of violence in 2003 against all forms of transportation and public markets. The United States does not endorse or support violent activities carried out against the Lao Government.

Principal Government Officials

Last Updated: 6/9/2006

President: CHOUMMALI Saignason, Lt. Gen.

Vice President: BOUN-GNANG Volachit

Prime Minister: BOUASONE Bouphavanh

Dep. Prime Min.: ASANG Laoli, Maj. Gen.

Dep. Prime Min.: DOUANGCHAI Phichit

Dep. Prime Min.: SOMSAVAT Lengsavat

Dep. Prime Min.: THONGLOUN Sisoulit

Min. of Agriculture & Forestry: SITAHENG Latsaphone

Min. of Commerce: SOULIVONG Daravong

Min. of Communications, Transport, Posts, & Construction: SOMMATH Pholsena

Min. of Education: SOMKOT Mangnormek

Min. of Energy & Mining: BOSAIKHAM Vongdala

Min. of Finance: CHANSY Phosikham

Min. of Foreign Affairs: THONGLOUN Sisoulit

Min. of Industry & Commerce: NAM Vignaket

Min. of Information & Culture: MOUNKEO Olaboun

Min. of Justice: CHALEUAN Yapaoher

Min. of Labor & Social Welfare: ONECHANH Thammavong

Min. of National Defense: DOUANGCHAI Phichit, Maj. Gen.

Min. of Public Health: PONMEK Dalaloi, Dr.

Min. of Public Security: THONGBANH Sengaphone

Min. to the Prime Minister’s Office & Head of Public Administration & Civil Authority: BOUNPHENG Mounphosay

Min. to the Prime Minister’s Office: BOUASY Lovansay

Min. to the Prime Minister’s Office: KHAM-OUANE Bouppha

Min. to the Prime Minister’s Office: ONNEUA Phommachanh

Min. to the Prime Minister’s Office: SAISENGLI Tengbliachu

Min. & Chairman of National Mekong Committee: KHAMLOUAD Sitlakone

Min. & Chairman of National Tourism

Authority Mongkhonvilay

Min. & Head of Cabinet, President’s Office: SOUBANH Sritthirath

Min. & Head of Government Secretariats: CHEUANG Sombounkhanh

Min. & Head of Science, Technology, & Environment Agency: BOUNTIEM Phitsamay

Chmn. Planning & Investment Committee: SOULIVONG Dalavong

Chmn. State Control Commission: ASANG Laoli, Maj. Gen.

Governor, National Bank: PHOUPHET Khamphounvong

Ambassador to the US: PHANTHONG Phommahaxay

Permanent Representative to the UN, New York: ALOUNKEO Kittikhoun

Laos maintains an embassy in the United States at 2222 S Street NW, Washington, D.C. 20009 (tel: 202-332-6416).

ECONOMY

Laos is a poor, landlocked country with an inadequate infrastructure and a largely unskilled work force. The country’s per capita income in 2004 was estimated to be $390. Agriculture, mostly subsistence rice farming, dominates the economy, employing an estimated 80% of the population and producing 45.5% of GDP. Domestic savings are low, forcing Laos to rely heavily on foreign assistance and concessional loans as investment sources for economic development. In 2003/2004, for example, donor-funded programs accounted for 5% of GDP and 63% of the capital budget. In 2004, the country’s foreign debt was estimated at $3 billion.

Following its accession to power in 1975, the communist government imposed a harsh, Soviet-style command economy system, replacing the private sector with state enterprises and cooperatives; centralizing investment, production, trade, and pricing; and creating barriers to internal and foreign trade.

Within a few years, the Lao Government realized its economic policies were preventing, rather than stimulating, growth and development. No substantive reform was introduced, however, until 1986 when the government announced its “new economic mechanism” (NEM). Initially timid, the NEM was expanded to include a range of reforms designed to create conditions conducive to private sector activity. Prices set by market forces replaced government-determined prices. Farmers were permitted to own land and sell crops on the open market. State firms were granted increased decision-making authority and lost most of their subsidies and pricing advantages. The government set the exchange rate close to real market levels, lifted trade barriers, replaced import barriers with tariffs, and gave private sector firms direct access to imports and credit.

In 1989, the Lao Government reached agreement with the World Bank and the International Monetary Fund on additional reforms. The government agreed to expand fiscal and monetary reform, promote private enterprise and foreign investment, privatize or close state firms, and strengthen banking. In addition, it also agreed to maintain a market exchange rate, reduce tariffs, and eliminate unneeded trade regulations. A liberal foreign investment code was enacted and appears to be slowly making a positive impact in the market. The pace of reform slowed during the Asian financial crisis in 1997-98, from which Laos has yet to fully recover. Currently, completion of several hydroelectric power projects is a key Lao objective to increase revenue through selling electric power to its neighbors.

These reforms led to economic growth and increased availability of goods throughout most of the 1990s. However, the Asian financial crisis, coupled with the Lao Government’s own mismanagement of the economy, resulted in spiraling inflation and a steep depreciation of the kip, which lost 87% of its value from June 1997 to June 1999. Tighter monetary policies brought about greater macroeconomic stability in FY 2000 when inflation dropped to less than 1% per month. The economy continues to be dominated by an unproductive agricultural sector operating largely outside the money economy, and the public sector continues to play a dominant role. Tourism is a growing industry and important source of foreign exchange.

FOREIGN RELATIONS

The new government that assumed power in December 1975 aligned itself with the Soviet bloc and adopted a hostile posture toward the West. In ensuing decades, Laos maintained close ties with the former Soviet Union and its eastern bloc allies, and depended heavily on the Soviet Union for most of its foreign assistance. With the collapse of the Soviet Union, Laos has sought to improve relations with its regional neighbors.

Laos maintains a “special relationship” with Vietnam and formalized a 1977 treaty of friendship and cooperation that created tensions with China. Although the two were allies during the Vietnam War, the China-Vietnam conflict in 1979 led to a sharp deterioration in Sino-Lao relations. These relations began to improve in the late 1980s. In 1989 Sino-Lao relations were normalized. Today China’s investment in Laos is increasing at a rapid rate and Chinese immigration to Laos is growing. Thailand remains the largest-single foreign investor in Laos. In 2003, Laos and Thailand signed agreements to cooperate on cross-border, labor, and counternarcotics issues.

Laos’ emergence from international isolation has been marked by improved and expanded relations with other nations such as Australia, France, Japan, Sweden, and India. Laos was admitted into the Association of Southeast Asian Nations (ASEAN) in July 1997 and applied to join the World Trade Organization (WTO) in 1998. Currently, Laos’ foreign policy concentrates on its immediate neighbors. Laos generally maintains a low profile in the larger international arena.

Laos is a member of the following international organizations: Agency for Cultural and Technical Cooperation (ACCT), Association of Southeast Asian Nations (ASEAN), ASEAN Free Trade Area (AFTA), ASEAN Regional Forum, Asian Development Bank, Colombo Plan, Economic and Social Commission for Asia and Pacific (ESCAP), Food and Agriculture Organization (FAO), G-77, International Bank for Reconstruction and Development (World Bank), International Civil Aviation Organization (ICAO), International Development Association (IDA), International Fund for Agricultural Development (IFAD), International Finance Corporation (IFC), International Federation of Red Cross and Red Crescent Societies, International Labor Organization (ILO), International Monetary Fund (IMF), Interpol, International Olympic Commission (IOC), International Telecommunications Union (ITU), Mekong River Commission (MRC), Non-Aligned Movement (NAM), Permanent Court of Arbitration (PCA), UN, United Nations Convention on Trade and Development (UNCTAD), United Nations Educational, Social and Cultural Organization (UNESCO), United Nations Industrial Development Organization (UNIDO), Universal Postal Union (UPU), World Federation of Trade Unions, World Health Organization (WHO), World Intellectual Property Organization (WIPO), World Meteorological Organization (WMO), World Tourism Organization, and World Trade Organization (observer).

U.S.-LAO RELATIONS

The United States opened a legation in Laos in 1950. Although diplomatic relations were never severed, U.S.-Lao relations deteriorated during in the post-Indochina War period after 1975. The relationship remained cool until 1982 when efforts at improvement began. Full diplomatic relations were restored in 1992 with the assignment of a U.S. Ambassador in Laos. Progress in accounting for Americans missing in Laos from the Vietnam War has been a principal measure for improving relations. Counternarcotics activities are also an important part of the bilateral relationship as the Lao Government has stepped up its efforts to combat cultivation; production; and shipment of opium, heroin, and marijuana.

Since the late 1980s, joint U.S. and Lao teams have conducted a series of excavations and investigations of sites related to cases of Americans missing in Laos. In counternarcotics activities, the U.S. and Laos are involved in a multimillion-dollar crop substitution/integrated rural development program. Laos also has formed its own national committee on narcotics, developed a long-range strategy for counternarcotics activities, participated in U.S.-sponsored narcotics training programs, and worked to improve law enforcement measures to combat the narcotics problem.

The U.S. Government provides foreign assistance to Laos in a number of areas, including support for Laos’ efforts to suppress opium production, training and equipment for a program to clear and dispose of unexploded ordnance, and public education about the dangers of unexploded ordnance. The United States also provides humanitarian assistance and aid in the health and education sectors. In December 2004, the President signed into law a bill extending normal trade relations to Laos; in February 2005, the Bilateral Trade Agreement between the United States and Laos entered into force. There has been a consequent rise in Lao exports to the U.S., particularly handicrafts.

Principal U.S. Embassy Officials

VIENTIANE (E) Address: Rue Bartolonie, B.P. 114; APO/FPO: Unit 8165, Box V, APO AP 96546-0001; Phone: (856) (21) 26-7000; Fax: (856) (21) 26-7190; INMARSAT Tel: 683-132825/826/827; Workweek: Monday–Friday, 8:00am-5:00pm; Website: usembassy.state.gov/laos.

Last Updated: 8/22/2006

TRAVEL

Consular Information Sheet : February 23, 2007

Country Description: The Lao People’s Democratic Republic (Laos) is a poor, developing country ruled by an authoritarian, Communist, one-party government. Political power is centralized in the Lao People’s Revolutionary Party. Services and facilities for tourists are adequate in the capital, Vientiane, and the UNESCO World Heritage town of Luang Pra-bang, but are extremely limited in other parts of the country.

Exit/Entry Requirements: A passport and visa are required. The Lao Ministry of Foreign Affairs states that visas can be issued upon arrival in Laos to U.S. citizen tourists with two passport-size photographs and $35 at the following ports of entry: Wattay Airport, Vientiane; Friendship Bridge, Vientiane, and Luang Prabang Airport. Persons who obtain entry visas prior to their arrival in Laos may also enter at the following international entry points: BotenBohan, Huaixay, KhammouaneNakhonphanom, SuvannahketMukdahan, Vangtao-Chong Mek, Pakse Airport, Daensayanh-Laobao, Namphao-Kaopae, and Namkan. Foreign tourists are generally admitted to Laos for 30 days. The Department of Immigration in Vientiane will extend 30-day tourist visas up to an additional 60 days for a fee of $2 per day. Foreigners who overstay their visas in Laos risk arrest and upon departure will be fined $10 for each day of overstay.

Foreign tourists who wish to obtain a visa in advance may contact a Lao Embassy or Consulate. In the United States, visas and further information about Lao entry requirements can be obtained directly from the Embassy of the Lao People’s Democratic Republic, 2222 S St. N.W., Washington DC 20008, tel: 202-332-6416, fax: 202-332-4923, Internet: http://www.laoembassy.com.

Business visas can only be arranged in advance by having a company or individual “sponsor” contact the Lao Ministry of Foreign Affairs (MFA) in Vientiane and request a visa for the traveler by offering a “guarantee.” Once this request is approved by the MFA, the approval will be communicated to the Lao Embassy in Washington, DC and the U.S. traveler may then apply for the business visa. This process normally takes 1-3 months. After arrival, these visas can usually be extended for one month.

U.S. citizens should not attempt to enter Laos without valid travel documents or outside of official ports of entry. Unscrupulous travel agents have sold U.S.-citizen travelers false Lao visas, which have resulted in those travelers being denied entry into Laos. Persons attempting to enter Laos outside of official ports of entry risk arrest or other serious consequences.

Immigration offices at some of the less-used border crossing points are not well marked. Travelers should make sure that they complete immigration and customs formalities when they enter Laos. Travelers who enter Laos without completing these formalities may be subject to fine, detention, imprisonment, and/or deportation.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child’s travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

At Wattay Airport (Vientiane), there is an international airport departure tax of US$10. At the Friendship Bridge (Vientiane, Laos - Nong Khai, Thailand border crossing) there is a 5,000 Kip (or 20 Thai Baht) exit tax.

Safety and Security: Since 2000, there have been periodic attacks on markets, bus stations, all forms of ground transportation, border checkpoints and other public places. Between February 2003 and November 2004, there were bombings in Vientiane, Savannakhet, and other cities and provinces, including Xieng Khouang, Sayabury, Houaphan, and Saysomboun. Between February and April 2003, armed attacks on buses and other vehicles on Route 13 (Vang Vieng to Luang Prabang) and Route 7 (junction Route 13 to Phonsavan) killed at least 22 persons. Small bombings and attacks on remote roads, as well as other incidents, have occurred as recently as January 2005.

In light of these incidents, the Department of State recommends that U.S. citizens traveling or residing in Laos exercise caution in public places and be alert to their surroundings, since the locations of future incidents are unpredictable. Travelers are advised to be cautious when traveling the roads of Laos and to check with local authorities, transport companies, other travelers, and/or the Embassy regarding any recent developments prior to travel. Road obstacles such as changes in surface conditions due to the weather occur frequently. We especially urge caution when traveling by road between Vang Vieng and Luang Prabang, on Route 7 from the Route 13 junction to Phonsavan town, and in surrounding areas, which have experienced armed attacks in past years.

After some attacks, the Lao Government has shut down telecommunications and stopped all transport on main roads for up to several days. Travelers should comply with requests to stop at checkpoints and roadblocks.

U.S. citizens, especially those considering travel outside urban centers, are advised to contact relevant Lao government offices, such as Lao Immigration Police Headquarters in Vientiane, the Lao Tourist Police, local police and customs offices, or the U.S. Embassy for the most current security information. To avoid trouble with the authorities, U.S. citizens traveling outside of normal tourist areas or contemplating any unusual activity (including, but not limited to, engaging in business, extensive photography, or scientific research of any kind) should consider seeking advance permission from the Village Chief, District Head, Provincial Governor, or National Tourism Authority, as appropriate.

More than 100 casualties per year are caused by over 500,000 tons of unexploded ordnance (UXO) in Laos left over from the Vietnam War. Savannakhet, Xieng Khouang, Saravane, Khammouane, Sekong, Champassak, Houaphan, Attapeu, and Luang Pra-bang Provinces, parts of Vientiane Province and the former Saysomboun Special Zone are severely contaminated by UXO. In addition, numerous mine fields are left over from the war, including mine fields along Route 7 (from Route 13 to the Vietnam border), Route 9 (Savannakhet to the Vietnam border), and Route 20 (Pakse to Saravane). While traveling in Laos, U.S. citizens should never pick up unknown metal objects and should avoid traveling off of well-used roads, tracks and paths.

U.S. citizens considering travel by air, road or river within Laos are advised to carefully evaluate the relative risks of the three modes of transport. Travelers should also exercise caution if contemplating swimming in rivers in Laos. Currents can be deceptive and strong.

Travelers should be aware that over the past several years a number of Lao- and Hmong-American citizens have been murdered in northern and northeastern Thailand near the border with Laos. In September 2004, a Lao-American was shot and killed by two unidentified males in Nong Khai, Thailand. In January 2005, a Hmong-American citizen was murdered in Nong Khai along with three Hmong-Thai citizens. In November 2005, a Hmong-American was murdered in front of his hotel in Nong Khai by a man wearing a balaclava to hide his identity. In January 2006, a Lao-American husband and wife were murdered at a temple in Nong Khai, and, in December 2006, in Ubon Ratchathani two Lao-Americans were shot as they exited a bus from Laos by a man on a motorcycle. During the same period, a number of non-Americans with ties to Laos have also been murdered in this region of Thailand. In addition, in March 2006 a Hmong-American disappeared from his residence along with seven other individuals. No arrests have been made in many of these cases. If U.S. citizens—particularly Lao-Americans or Hmong-Americans—must travel to these areas, they should exercise caution and remain vigilant with regard to their personal security. It is also recommended that persons wishing to travel to border areas check first with the Thai Tourist Police and U.S. Consulate General in Chiang Mai or the U.S. Embassy in Bangkok or the U.S. Embassy in Vientiane. U.S. citizens are also advised to exercise caution in remote areas along the border with Burma. Bandits, drug traffickers, and other people pursuing illegal activities operate in these border areas, as do armed insurgent groups.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: While Laos generally has a low rate of violent crime, it is not immune from crime. While in Laos, Americans should remain aware of their surroundings and exercise appropriate security precautions. With the introduction of methamphetamine and other illicit drugs, thefts and assaults in Vientiane have increased and some have turned violent. Bag snatching is increasingly frequent and sexual assaults have also occurred. Residential burglary is commonplace. Expatriates attempting to report burglaries in progress to the police often find that police telephones are not answered or they are informed that the police are not authorized to respond to criminal activity at night or that they have no transportation. U.S. citizens who move to Vientiane are encouraged to contact the U.S. Embassy for security advice.

Travelers in Vientiane should exercise caution, particularly after dark, at roadside restaurants and stalls near the banks of the Mekong River. Foreigners are often the victims of purse snatching while sitting down to eat or while riding bicycles or motorcycles in this area. To help ensure the security of valuables and documents carried on their person, travelers may wish to carry them in a bag that cannot be easily stolen. U.S. citizens traveling to Vang Vieng should be aware that some tourists have been robbed and assaulted while walking alone to the caves on the far side of the Nam Song River. Several people have drowned during the rainy season while inner-tubing or swimming in the Nam Song River. Camping at night anywhere except in authorized campgrounds in national parks is dangerous.

Many restaurants in popular tourist locations offer menu items which may contain unknown substances or opiates, particularly, “pizzas”, “shakes” or “teas.” These products are often advertised as “happy” or “special” items. These unknown foods and drinks can be dangerous, causing illness and death.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical facilities and services in Laos are limited and do not meet Western standards. U.S. citizens often seek medical care in Thailand. The Friendship Bridge linking Vientiane, Laos, to Nong Khai, Thailand, is open daily 6:00 a.m. to 10:00 p.m. Officials generally will allow travelers to cross after hours in cases of medical emergency. AEK International Hospital (tel: 66-42-342-555) and North Eastern Wattana General Hospital, both in Udorn, Thailand (tel: 66-1-833-4262) have English-speaking staff accustomed to dealing with foreign patients. Nong Khai Wattana Hospital in Nong Khai, Thailand (tel: 66-1-833-4262) can handle most simple medical procedures. Ambulances for both AEK International Hospital and Nong Khai Wattana Hospital have permission to cross the Friendship Bridge to collect patients from Vientiane. In Vientiane, the Setthatirat Hospital ambulance (tel: 021-413-720) can take patients to Thailand. The Department of State assumes no responsibility for the professional ability or reputation of these hospitals.

Avian Influenza: The Centers for Disease Control (CDC), the World Health Organization (WHO), and Lao authorities have confirmed the presence in Laos of the H5N1 strain of avian influenza, commonly known as the “bird flu.” Travelers to Laos and other countries affected by the virus are cautioned to avoid poultry farms, contact with animals in live food markets, and any surfaces that appear to be contaminated with feces from poultry or other animals. In addition, the CDC and WHO recommend eating only fully cooked poultry and eggs. For the most current information and links on avian influenza in Laos, see the State Department’s Avian Influenza Fact Sheet or visit the website of the U.S. Embassy in Laos.

There is a problem with counterfeit pharmaceuticals throughout Southeast Asia. American citizens should be aware of this problem and purchase pharmaceuticals only through the most reputable pharmacies with a physician’s prescription. Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Laos is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

The number of road accidents and fatalities in Laos has risen sharply in the last decade as the number of motor vehicles has increased. U.S. citizens involved in traffic accidents have been barred from leaving Laos before paying compensation for property damage or injuries, regardless of who was at fault.

Traffic in Laos is chaotic and road conditions are very rough. Few roads have lane markings. Where lane markings, road signs, and stoplights do exist, they are widely ignored. Many drivers are unlicensed and uninsured. Driving under the influence of alcohol or illegal drugs is not uncommon and there may not be any penalties for such offenses. Theoretically, traffic moves on the right, but vehicles use all parts of the road. Cyclists pay little or no heed to cars. Motorcycles carry as many as five people, greatly impeding the drivers’ ability to react to traffic. The evening hours are particularly dangerous. Road construction sites are poorly marked, appear with no advance warning, and can be difficult to see at night. Roads are poorly lit, many vehicles have no operating lights, few bicycles have reflectors, and trucks without reflectors commonly park on unlit roads.

Public transportation is unreliable and is limited after sunset. The most common form of public transport is three-wheeled, open-sided taxis called “tuk-tuks.” Automobile taxis are available at the airport, the Friendship Bridge, and major hotels. Tuk-tuks and taxis are frequently in poor repair, and drivers generally speak little or no English. Inter-city transport is provided by buses, pickups, and trucks, which are also often in poor repair.

Emergency services in Laos are either unreliable or non-existent. Lao road traffic regulations require any driver coming upon a road accident to assist in transporting injured persons to a hospital. Emergency telephone numbers are Fire: 190, Ambulance: 195 or 021-413-720, Traffic Police: 191, Tourist Police: 021-251-128 (only for incidents involving tourists).

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Laos, the U.S. Federal Aviation Administration (FAA) has not assessed the Lao Civil Aviation Authority for compliance with the International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA’s Internet web site at http://www.faa.gov.

Travel of Foreigners Within Laos: The Lao tourist police have informed foreign tourists that a licensed Lao tour guide must accompany any group of more than 5 foreign tourists; however, this regulation does not appear to be strictly enforced.

The authorities may restrict travel in rural areas outside of popular tourist destinations. Restricted areas may not be marked or even widely known by local citizens. If traveling without a reputable tour guide who is aware of local conditions, travelers should consult with local authorities before entering remote areas away from obvious tourist destinations.

Lao citizens who wish to have a foreign citizen—including a family member—stay in their home must obtain prior approval from the village chief. The foreigner may be held responsible if the Lao host has not secured prior permission for the visit. American citizens are strongly advised to ensure that such permission has been sought and granted before accepting offers to stay in Lao homes.

Security personnel may at times place foreign visitors under surveil-lance. Hotel rooms, telephones and fax machines may be monitored, and personal possessions in hotel rooms may be searched. Taking photographs of anything that could be perceived as being of military or security interest may result in problems with the local authorities. See Section below on Photography and Other Restrictions.

Dual Nationality: Dual nationality is prohibited under the Law on Lao Nationality. The Lao Government holds that persons lose their Lao citizenship if they take a foreign citizenship, and in some cases, if they reside in a foreign country for an extended period of time. The Law on Lao Nationality holds that if one or both parents of a child are Lao nationals who have not permanently settled in another country, then the child is a Lao citizen, even if the child is born outside Laos.

When the child is born in Laos and one parent is a U.S. citizen, the Lao Government generally will not recognize the child as a U.S. citizen, and generally will not permit the child to depart Laos on a U.S. passport. Provided the child meets all other criteria for obtaining U.S. citizenship, however, the U.S. Embassy in Vientiane may still issue a U.S. passport to the child. In addition to being subject to all Lao laws affecting U.S. citizens, individuals who also possess Lao nationality may also be subject to other laws that impose special obligations on citizens of that country.

Specific questions on dual nationality may be directed to Overseas Citizens Services, Department of State, SA-29, 4th Floor, 2201 C Street N.W., Washington D.C. 20520, or to the U.S. Embassy in Vientiane. For additional information, please see the Bureau of Consular Affairs’ Dual Nationality flyer.

Relationships With Lao Citizens: The Lao Government prohibits sexual contact between foreign citizens and Lao nationals except when the two parties have been married in accordance with Lao Family Law. Any foreigner who enters into a sexual relationship with a Lao national may be interrogated, detained, arrested, or jailed. Lao police have confiscated passports and imposed fines of up to $5000 on foreigners who enter into disapproved sexual relationships. The Lao party to the relationship may also be jailed without trial. Foreigners are not permitted to invite Lao nationals of the opposite sex to their hotel rooms; police may raid hotel rooms without notice or consent.

Foreign citizens intending to marry Lao nationals are required by Lao law to obtain prior permission from the Lao Government. The formal application process can take as long as a year. American citizens may obtain information about these requirements from the U.S. Embassy in Vientiane. The Lao Government will not issue a marriage certificate unless the correct procedures are followed. Any attempt to circumvent Lao regulations may result in arrest, imprisonment, a fine of $500-$5000, and deportation. Foreigners who cohabit with or enter into a close relationship with Lao nationals may be accused by Lao authorities of entering into an illegal marriage and be subject to these same penalties.

Foreign citizens who wish to become engaged to a Lao national are required to obtain prior permission from the chief of the village where the Lao national resides. Failure to obtain prior permission can result in a fine of $500-$5000. Lao police frequently impose large fines on foreign citizens a few days after they hold an engagement ceremony with a Lao citizen based on the suspicion that the couple probably subsequently had sexual relations out of wedlock.

Marriage: A Lao Prime Ministerial decree requires that marriages of Lao citizens abroad be registered with Lao embassies in order to be legal in Laos. If an American citizen marries a Lao citizen in the U.S. and then the couple comes to Laos, the American could be liable to penalties under the Lao law governing sexual relationships (above) if the marriage has not been registered beforehand with a Lao Embassy.

Religious Workers: Religious proselytizing or distributing religious material is strictly prohibited. Foreigners caught distributing religious material may be arrested or deported. The Government of Laos restricts the importation of religious texts and artifacts. While Lao law allows freedom of religion, the Government registers and controls all associations, including religious groups. Meetings, even in private homes, must be registered and those held outside of established locations may be broken up and the participants arrested.

River Travel: River travel is common in Laos, but safety conditions do not conform to U.S. standards. In particular, travel by speedboat (local term “fast boat”) is dangerous and should be avoided, particularly during the dry season. Travel on or across the Mekong River along the Thai border should be avoided at night. Lao militia forces have shot at boats on the Mekong after dark.

Photography and Other Restrictions: Taking photographs of anything that could be perceived as being of military or security interest—including bridges, airfields, military installations, government buildings, or government vehicles—may result in problems with authorities, including detention or arrest and confiscation of the camera. Tourists should be cautious when traveling near military bases and strictly observe signs delineating the military base areas. Military personnel have detained and questioned foreigners who have innocently passed by unmarked military facilities.

Because of the prohibition on religious proselytizing, travelers should use caution when taking photographs or videotaping non-Buddhist religious services. If attending public services or religious gatherings, foreigners should ask permission from the local police and civil authorities to photograph or videotape. See section above on Religious Workers.

Local police may suspect persons using any kind of very sophisticated still or video camera equipment of being professional photographers, or possibly photojournalists which may lead to questioning by the police or other consequences.

Financial Transactions: There are network-connected ATMs in Vientiane only. These machines are generally limited to withdrawals of the equivalent of about $100.00 in Lao Kip only. Credit cards are accepted at major hotels and tourist-oriented businesses. Credit card cash advances and/or Western Union money transfers are available at banks in most provincial capitals and other tourist centers. It is illegal to use U.S. dollars and Thai Baht for larger transactions. However, the Lao Government requires payment in U.S. dollars for some taxes and fees, including visa fees and the airport departure tax.

Customs/Currency Regulations: Lao customs authorities may enforce strict regulations concerning temporary importation into or export from Laos of items such as firearms, religious materials, antiquities, foreign currency, cameras and other items. It is advisable to contact the Embassy of the Lao People’s Democratic Republic in Washington for specific information regarding customs requirements. (Please also see section on “Religious Workers” above). There are prohibitions against importing or exporting more than $2500 (U.S. dollar equivalent) of currency without authorization. Contact the Lao Embassy or Lao customs authorities for more details. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than those in the United States for similar offenses. Persons violating Lao laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession of, use of, or trafficking in illegal drugs in Laos are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family.

Registration/Embassy Locations: Americans living or traveling in Laos are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website, and to obtain updated information on travel and security within Laos. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located on Rue Bartholonie (near Tat Dam), in Vientiane; from the U.S., mail may be addressed to U.S. Embassy Vientiane, Unit 8165, Box V, APO AP 96546;

Telephone (856-21) 267-000, recorded emergency information for American citizens (856-21) 267-111; duty officer emergency cellular telephone (856-20) 550-2016; Embassy-wide fax number (856-21) 267-190; Consular Section email: CONSLAO@state.gov, Embassy website: http://vientiane.usembassy.gov/.

Public Announcement : February 23, 2007

This Public Announcement is being issued to inform American citizens about security concerns in northern Laos. Multiple sources report fighting between Lao Government forces and one or more unidentified groups as well as increased movements by Lao Government forces in the area of Vang Vieng in northern Vientiane Province beginning around February 7. This Public Announcement expires on May 23, 2007.

The U.S. Embassy in Laos has received reports from multiple sources of fighting between Lao Government forces and one or more unidentified groups and of increased movements by Lao Government forces in the area of Vang Vieng in northern Vientiane Province beginning around February 7. The U.S. Embassy urges U.S. citizens to exercise caution in and around the area of Vang Vieng and recommends against travel by any form of ground transportation north from Vang Vieng to Luang Prabang.

U.S. Embassy personnel currently are prohibited from undertaking personal travel by ground transportation north of Vang Vieng to Luang Pra-bang, along Route 13 and contiguous roadways.

U.S. citizens are strongly encouraged to consult the Department of State’s Consular Information Sheet for Laos, and the Worldwide Caution Public Announcement, located at http://travel.state.gov. For further information, U.S. citizens may also contact the Department of State toll-free from within the United States and Canada at 1-888-407-4747, or outside the U.S. and Canada, on a regular toll line at 1-202-501-4444. The U.S. Embassy is located at Thanon Bartholonie (near Tat Dam), in Vientiane; from the U.S., mail may be addressed to U.S. Embassy Vientiane, Box V, APO AP 96546; tel (856-21) 267-000; duty officer emergency cellular telephone (856-20) 550-2016; consular section fax number (856-21) 267-040; internet http://LAOS.USEMBASSY.GOV; email: conslao@state.gov.

International Adoption : February 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Important Information: Prospective adoptive parents are advised to fully research any adoption agency or facilitator that they plan to use for adoption services. For U.S. based agencies, it is suggested that prospective adoptive parents contact the Better Business Bureau and licensing office of the Department of Health and Family Services in the state where the agency is located.

Laos has very few laws and those that exist may not be clear or may conflict with other regulations. There are no orphanages or government agencies with clear responsibility for orphans. Irregularities in the methods used to identify children for adoption in Laos make it difficult to classify some children as orphans under U.S. immigration law.

Such practices as payment to birth mothers to induce them to give up a child are clearly prohibited under U.S. immigration law. As a result of these irregularities, you are advised that if you proceed to finalize an adoption of a Lao child you wish to immigrate as an orphan, you should be prepared for a lengthy wait before a thorough investigation is concluded. Further, if it is uncovered that the child does not meet the orphan definition under U.S. law, your orphan petition to classify the orphan as an immediate relative (I-600) will be denied by the Bureau of Citizenship and Immigration Services in the Department of Homeland Security.

Documentation: Lao documents are not generally reliable and regulations regarding civil documentation are frequently not followed. Late registration is legal. Births are supposed to be registered with the local village authorities (“headman”). The birth certificate format is not standardized. The death certificate format is not standardized. Generally, any pre-printed form is acceptable, and any death certificate should be on such a form. At a minimum, the death certificate should contain the name of the deceased, cause of death, date of death, and the deceased’s date of birth or age at death. Lao death certificates are unusually vague about cause of death, “sickness” and “disease” being the two most common causes given. Late registration is legal.

Document fraud is widespread in Laos. Fraud is not limited to fake documents produced by other than the authorized civil authority. A document may be legal, per se, in that it has been issued by the proper civil authority in the correct format, but be fraudulent in the sense that it contains false information. The format of official documents varies widely from province to province.

Suspension of Foreign Adoptions: Prospective adopting American citizen parents should be aware that the Lao government has currently suspended all adoptions of Lao children by foreigners. Some exceptions have been granted by the Office of the Prime Minister, which is the only Lao government authority which can grant exceptions to the ban. Prospective adopting American citizen parents must obtain written authorization from the Office of the Prime Minister prior to having the United States Citizen and Immigration Service (USCIS) approve a petition for an orphan.

Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Please feel free to contact the Consular Section of the U.S. Embassy by phone at (856) 21-267-000. You may also contact us by email at our email address: CONSLAO@state.gov. If you wish to contact us by U.S. domestic mail, please use this address:

Consular Section, U.S. Embassy
Box V
APO AP 96546

LAOS

Lao People's Democratic Republic

Sathalanalat Paxathipatai Paxaxon Lao

CAPITAL: Vientiane (Viangchan).

MONETARY UNIT:

Lao kip (K). There are no coins, and there are notes of 1, 5, 10, 20, 50, 100, 500, 1,000, 2,000, and 5,000 kip. With considerable inflation over the last several decades, kip notes under 500 are rarely seen or used now. The Thai baht and U.S. dollar are also commonly used, especially in larger transactions, though official policy calls for the exclusive use of the kip.

CHIEF EXPORTS:

Wood products, garments and textiles, electricity, coffee, tin.

CHIEF IMPORTS:

Machinery and equipment, vehicles, fuel.

GROSS DOMESTIC PRODUCT:

US$7 billion (purchasing power parity, 1999 est.).

BALANCE OF TRADE:

Exports: US$271 million (1999 est.). Imports: US$497 million (1999 est.).

COUNTRY OVERVIEW

LOCATION AND SIZE.

The Lao People's Democratic Republic, or Lao PDR, is a land-locked nation bordered on the north by China, the east by Vietnam, the west by Burma (Myanmar), and the south by Thailand and Cambodia. The Mekong River forms much of the boundary between Laos and Thailand. The country's total land boundaries are 5,083 kilometers (3,159 miles). Its geographic area is 236,800 square kilometers (91,428 square miles), making it just slightly larger than the state of Minnesota. Its capital, Vientiane, the largest city in central Laos, is located on the Mekong River. The other 3 major cities are Luang Prabang, Savannakhet, and Pakxé.

POPULATION.

The Lao PDR differs from many other Asian countries in that it has an extremely low population density of only 23.2 persons per square kilometer (60 per square mile). Its population density is almost the same as the state of Minnesota. In July of 2000 its population was estimated as 5,497,459. This compares with a population of 3,586,083 in 1985; 2,886,000 in 1976; and 1,789,000 in 1953. The current population growth rate is a relatively high 2.5 percent. If this rate were to continue, the country's population would double to over 10 million by the year 2028. The major cause of this high population growth is the high fertility rate of Lao women. The Lao women on average currently have 5.21 children.

Thus, it is not uncommon to find families of 4 to 10 children, even in urban areas.

The ethnically diverse Lao PDR population is comprised of 3 major ethnic groups: Lao Lum, lowland; Lao Theung, upland; and Lao Sung, highland. Among prominent highland groups are the Hmong and Yao. Ethnic minorities comprise 47.5 percent of the total population, according to the 1995 census, which distinguished 47 main ethnic groups and 149 sub-groups. Thus, the Lao PDR is one of the most ethnically diverse countries in Asia.

With the country's low population density and the need to import labor (often Vietnamese guest workers ), the government has been reluctant to adopt a strict birth control or family planning policy. Instead the policy has been the more moderate one of birth spacing (delaying natural pregnancies so that women have fewer children than the biological maximum).

With such high fertility, the Lao PDR has a very young population. Roughly 54.2 percent of the population is under the age of 20. With poor health conditions, particularly in rural areas and related high mortality rates, only 2.2 percent of the population is over 70 years of age.

OVERVIEW OF ECONOMY

Laos is one of the world's poorest countries, and thus its primary policy goal is to strengthen its economy and develop its own means to earn foreign exchange. Much of its population is involved in a subsistence economy, in which families produce by themselves what is needed for daily basic living. Laos' major economic disadvantage has been that it is a landlocked nation with weak infrastructure . Nearly 80 percent of the country is mountainous and/or forested with only 21 percent of the land cultivable and less than 4 percent actually cultivated. Laos perhaps has the highest ratio of forest cover to land area in all of Asia: 47 percent of the country is forested.

Laos' long history dates back to the founding of its first kingdom in 1353. It was then known as Lan Xang (the land of a million elephants). It reached its period of greatest glory and influence during the years 1633-90. Later succession struggles led Lan Xang to break into 3 smaller kingdoms. These weakened kingdoms then came initially under the Siamese orbit and later French colonialism. Under French colonialism, Laos suffered neglect.

After achieving complete independence from the French in 1953, the royalist Lao regime was gradually drawn into the vortex of the U.S. war in Vietnam. The economy became war-torn, suffering from extreme dependence on foreign aid. Extensive U.S. bombing of northern, northeastern, and eastern Laos from 1965 to 1973 seriously disrupted the rural economy. The U.S. dropped 33 percent more bombs on Laos than on Nazi Germany.

On 2 December 1975, the Lao People's Democratic Republic was established, representing the culmination of a long extended revolutionary war. This event brought peace and independence to the country. The economy was transformed into a Soviet-style state planned economy and received economic and technical assistance from other communist nations. The attempt to collectivize agriculture was rather quickly abandoned, however. In 1986, a new policy termed the New Economic Mechanism (NEM) was introduced to transform the economic system from a state-planned one to that of free market forces and prices. The major goal of this reform was to provide greater incentives to increase economic performance and productivity. With the collapse of the USSR in 1991, the Lao PDR opened its doors to active economic involvement with the West, both in terms of international aid and investment. The Lao PDR became a favorite of diverse donors, and foreign aid currently represents some 20 percent of the GDP. From 1991 to 1997, the Lao PDR enjoyed considerable macroeconomic success under the NEM system, with annual economic growth averaging 6.5 percent

During the 1990s, the Lao economy became increasingly interconnected with the Thai economy. Laos imports many basic modern consumer products from Thailand. On weekends, it is common to find many Lao families from Vientiane visiting Thailand via the Friendship Bridge, shopping for basic household items such as various packaged foods.

Initially, it appeared that the Lao economy (with no stock market and a currency not traded internationally) would be immune to the Asian economic crisis of 1997 which shook so many Asian economies. In a somewhat delayed effect, the Lao currency went into a free fall far greater than that of any other Asian country. Given Lao's dependence on imports, this had a serious, adverse effect on nearly all Lao, except a small number of elite individuals connected to the dollarized economy. The Asian economic crisis also adversely affected the Lao economy by reducing foreign direct investment from other Asian countries and reducing the demand for Lao electricity exports, a major source of foreign exchange.

Since it received foreign aid earlier from the Eastern block countries and in the past decade from multilateral agencies (primarily the World Bank and Asian Development Bank) and other countries, the country does have a debt burden. Total external debt in 1997 was estimated to be US$2.32 billion, and debt payments represented 4 percent of government expenditures in 1995-98. Many Lao loans are granted at highly concessional terms, meaning that the interest rates are quite low over a long payment period and thus are almost like grants.

The major challenge facing the Lao PDR currently is to restore the sound macroeconomic performance of the early and mid-1990s and develop its own sources of foreign exchange earnings. Hydroelectric power development on the tributaries of the Mekong, the development of light industries such as garments and textiles, marketing of natural resources such as gypsum, tin, and wood products, and tourism development are the primary economic sectors being promoted.

POLITICS, GOVERNMENT, AND TAXATION

The Lao PDR remains a 1-party state with complete dominance by the Lao People's Revolutionary Party (LPRP). The president since 1998 has been Khamtain Siphandon and the prime minister has been Sisavat Keobounphan. The National Assembly, last elected in 1997, has 99 members. Basic economic policies are determined in major Party Congresses which are held every 5 years. The LPRP is strongly supportive of the current mixed policy of having a privatized economy with a reduced role for state-owned enterprises but with a 1-party political system.

As part of the reform policies introduced in 1986, the government has attempted to reduce the size of the public sector , including the military. They have done this, however, in humanistic ways by avoiding the direct firing of people. International donors and agencies have been concerned that such reforms have slowed in the late 1990s.

The government's ability to tax is limited. Tax revenue is only 10 percent of the GDP, and major capital outlays are financed by external assistance, according to Bourdet. Major sources of revenues are business taxes, import/export taxes, and various fees (such as visa fees and fly-over fees). For smaller businesses, flat fixed taxes are used, which discourages tax evasion. In 1995-98, tax on foreign trade represented 27.1 percent of government tax revenues. The income tax represents only 6.3 percent of all revenues.

The government plays an active role in evaluating and assessing potential international investments coming into the country. The government, with the strong support of the Lao Women's Union, has been active in preventing the development of a commercial sex industry. At this point, there is absolutely no standardized fast food industry in the country, such as KFC or McDonald's. Interestingly, in terms of the cola wars, Laos is a Pepsi country. Coke must be imported from Singapore or Thailand.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Overall, the Lao PDR has a weak physical infrastructure. As yet, there is no train system. Travel to remote provinces requires a plane. During the rainy season, roads to remote areas may be impassable. At other times, inexpensive bus transportation is available for ordinary people to travel through the country.

The country is served by a network of 21,534 kilometers (13,381 miles) of roads, of which 16.5 percent are paved. As part of the 1996-2000 National Plan, major work has been undertaken to improve the country's limited road infrastructure. A key project is the reconstruction of Highway 13 which links China in the north and Pakxé in the south.

The Lao PDR is receiving considerable international assistance to develop its infrastructure. The Japanese, for example, provided assistance in building a new international airport in Vientiane, and the Thais assisted with a new airport in Luang Prabang. The country's weak road infrastructure adversely affects the development of its rich natural resources, such as minerals and wood products

In April 1994, the Friendship Bridge, the first ever across the lower parts of the Mekong River, was completed with a US$40 million grant from Australia. Upon completion of the bridge, the Lao government issued a regulation not allowing private cars to use the bridge. The government feared a wave of private cars from Thailand

which would cause accidents, congestion, and pollution. Thus, the bridge is used mainly commercially by trucks and buses and has helped landlocked Laos connect economically with its neighbors in the region. A second new bridge over the Mekong, the Lao-Nippon Bridge, was completed in the south near Pakxé in August 2000 and was financed primarily by the Japanese. A third bridge across the Mekong at Savannakhet is scheduled for completion in 2003. This bridge connected to Route 9 will connect both central Laos and northeast Thailand to the Vietnamese port of Da Nang. These bridges, as well as better road infrastructure, will improve Lao links with major ports in Thailand and Vietnam.

With its many mountains and tributaries of the Mekong River, the Lao PDR has excellent hydroelectric power potential. The country's total hydropower potential is estimated to be 25,000 megawatts (MW). Laos has even been referred to as the potential battery of Southeast Asia. Currently the country has 10 major electric power plants with a total capacity of 1329.5 MW. In 1998, the nation consumed just over one-third of the 1.34 billion kilowatt hours (kWh) of electricity generated. The Lao PDR plans to construct a total of 12 dams on the Mekong's tributaries over the next decade. The decision has caused considerable controversy in the international environmental community. Major concerns include effects on displaced rural populations in Laos itself, the fish populations of the Mekong and its tributaries, and unintended effects on downstream communities in Cambodia and Vietnam, which are highly dependent on the natural flows of the Mekong River.

Only those of higher socioeconomic status have telephones in their homes, though cell phones are increasingly popular among those of higher socioeconomic status. The country has only a total of 18,139 conventional phone lines, of which 71.8 percent are in the capital. Phone cards are also now available. It is the goal of Lao Télécommunications to have 49,000 telephone lines installed by 2001. Televisions are widely used wherever there is access to electricity. About 72 percent of urban households and 22 percent of rural households have televisions. Much of the Lao population lives in the lowlands in close proximity to Thailand. Thus, they have access to popular Thai TV programming with related advertisements for a variety of popular Thai consumer goods . Shinawatra (a Thai telecommunications conglomerate) has been active in assisting the Lao PDR develop its telecommunications infrastructure.

Though Laos has not officially joined the World Wide Web (there is not yet a .lao suffix), some Lao people, especially in urban areas, are using the Internet. There are now a number of private cyber shops in Vientiane offering public Internet service.

ECONOMIC SECTORS

Like many undeveloped countries, Laos generates a majority of its GDP from the agricultural sector. Agriculture accounted for 51 percent of the GDP in 1999 and employs about 80 percent of the total workforce of 2,220,000. In most areas of the country, 90 percent of the people work in agriculture. Industry accounted for 22 percent of the GDP but employed only 3.3 percent of the people (though this figure was 20 percent in the capital). The services sector accounts for 27 percent of the GDP and roughly 10.3 percent of the workforce.

Traditionally, Laos has been a subsistence agricultural economy. That remains true today, though other economic sectors are growing in the Lao PDR. While the Lao PDR has no intention to develop heavy industry, it is developing its light industry, particularly the production of garments and textiles. The Lao PDR has excellent capability in producing attractive traditional textiles and handicrafts. Lao silk and cotton textiles are becoming known for their quality around the world.

The Lao PDR is also developing an important service sector, which has 2 new components: banking and tourism. There are now many newly established foreign banks located in the Vientiane area, most of which were established in the 1990s. Among 6 such Thai banks are the Bangkok Bank and Siam Commercial Bank. The 1999-2000 year was called the "Visit Laos Year" to promote tourism. In the late 1990s travel to Laos was dramatically liberalized with visas available on arrival. The tourist infrastructure was also improved substantially. Tourism has expanded dramatically in the 1990s from only 14,400 visitors in 1990 to 500,200 in 1998. In 1997 tourism contributed US$73.3 million to the economy, representing 23 percent of export earnings. The designation of Luang Prabang, perhaps the best preserved traditional Southeast Asian city, as a world heritage site was definitely a positive development for Lao tourism. Other important tourist attractions in Laos are the Wat Phu ancient Khmer ruins in southern Laos, the Khon waterfalls in the same region, and the Plain of Jars in Xiengkuang Province. The latter area was heavily bombed during the U.S. War in Vietnam. In fact, as of 2001 Laos is the most heavily bombed country in the history of the world.

AGRICULTURE

The Lao PDR is primarily an agricultural economy, with this sector contributing 51 percent of the GDP. Approximately 1,880,000 individuals are involved in agricultural work. Recently the Lao PDR conducted a major agricultural census which provides an excellent overview of the basic nature of Laos' agricultural system. The results of this survey indicate that 79.7 percent of the total population is engaged in farming. The average land holding is 1.62 hectares with 27 percent of households having 2 hectares or more and 36 percent having less than 1 hectare. An impressive 97 percent of farmers own their own land. About 93 percent of the area devoted to rice production is for the production of sticky rice, a subsistence crop used primarily for home consumption. Tree farming is another important part of Lao agricultural life. About 23 percent of such farms have mango trees, 17 percent coconut trees, 17 percent banana trees, 11 percent jackfruit trees, and 11 percent tamarind trees. Also 8 percent of farmers are engaged in aquaculture, and 71 percent do other fishing. Roughly 31 percent of farmers have cattle, 48 percent water buffaloes, 49 percent pigs (73 percent in the case of Hmong people), and 73 percent chickens.

Only 6 percent of farmers sell their total output, while 35 percent sell some of their farm output. This means that the majority of farmers (59 percent) are engaged solely in subsistence agriculture. The basic staple of such farmers is the production of sticky rice for local consumption. Unlike its neighbors Thailand and Vietnam, the Lao PDR is not a rice exporting country. Their goal is simply to attain self-sufficiency in rice production, which is possible in good weather years. The production of sticky rice may be supplemented by vegetable gardens; animal raising (goats, chickens, ducks, turkeys, pigs); and mango, coconut, or banana trees. Some maize is also grown. In the tropical forests of Laos, there are also many edible wild plants and foods that are gathered, primarily by women. Hunting and fishing also supplement the subsistence diet and provide valuable protein. Lao greatly enjoy fishing.

In terms of tons of agricultural production, the top 5 crops in Laos in order of importance are rice, vegetables and beans, sugarcane, starchy roots, and tobacco. Since 1990, among these 5 leading crops, production of vegetables and beans has grown the fastest in percentage terms, followed by sugarcane. In the decade since 1990 rice production has increased 47.9 percent. Among agricultural products often produced as cash crops are mung-beans, soybeans, peanuts, tobacco, cotton, sugarcane, coffee, and tea.

Given its subsistence nature, Lao agriculture has not played a major role in the country's foreign trade. The major export products from Laos' agricultural sector are timber, lumber, plywood, and coffee. The major agricultural imports are sugar, condensed milk, and long-grain rice.

Numerous city dwellers have rural roots and the Lao love gardening. Thus, some urban dwellers supplement limited cash incomes by having gardens, small fish ponds, or raising animals. They also may engage in fishing in the Mekong River, hunting, and the gathering wild foods. Some urban dwellers in the capital of Vientiane cultivate gardens along the Mekong River during the dry season.

FORESTRY AND LOGGING.

The Lao PDR has extensive tropical forests containing many valuable hardwoods such as teak. With a total ban on logging in Thailand, there is considerable demand for Lao wood products from other Asian countries such as Thailand, Malaysia, and Japan. Malaysia has projects for teak cultivation in southern Laos. The Lao military is involved in timber exploitation. In 1991, timber and furniture exports totaled 39.2 percent of all exports, while in 1996 such exports dropped to 28 percent. In 1998, export of all types of wood products brought in US$115.4 million to the Lao economy.

Deforestation and the need for sustainable forestry are major environmental issues facing the Lao PDR and its agricultural/rural sector. The Lao are very conscious that much of Thailand's northeast was deforested as the result of expanded rice field acreage. Also, upland agricultural production can result in serious deforestation. The reduction of upland rice production and the expansion of irrigated rice lands to allow more crops on a given piece of land should help preserve Lao forests by reducing the need to expand acreage at the expense of forests.

IRRIGATION PROJECTS.

A major recent policy is an ambitious irrigation project. Given the spread of the contagion of the Asian economic crisis to Laos, organizations such as the IMF strongly urged restrictive monetary and fiscal policies . The Lao PDR ignored the policy dictates of the IMF and instead they moved boldly ahead with a major rural irrigation infrastructure project. For doing this they were severely criticized by the international financial community, and no doubt this expansionary program contributed to both inflation and the devaluation of the Lao kip. In continuing their agricultural irrigation program, the Lao government was both demonstrating its economic sovereignty and also clearly putting the interests of the Lao agricultural sector ahead of those in urban communities which are most severely affected by inflation.

The French scholar Catherine Aubertin argues that Lao agricultural policy favors the lowland Lao over the upland Lao because of its resettlement schemes to decrease slash and burn agriculture in mountainous areas. The Lao government feels such policies are essential for forest conservation.

INDUSTRY

The Lao PDR has relatively little industry. This sector employed only 3.3 percent of the workforce in 1995. There is no heavy industry and much of the country's industry is comprised of smaller companies. In 1999, there were only 108 establishments in the whole country with more than 100 employees. However, there were 19,797 establishments with fewer than 9 employees. These small establishments are involved primarily in the production of textiles and handicrafts. Laos is well known for the high quality of its aesthetically attractive textiles. Even though industry plays a small role in the Lao economy, its importance has increased significantly. In 1987, industry represented only 11 percent of the GDP of the Lao PDR, while in 1999, it represented 22 percent, doubling since the introduction of the New Economic Mechanism policy.

MANUFACTURING.

The following are the principal products manufactured in the Lao PDR: oxygen-acetylene, battery acid, industrial alcohol, detergent powder, soap, shoes made of animal skin, leather, medical drugs, fans, vaccines, plastic goods, timber, lumber, plywood, flood lumber, rattan furniture, books, fabrics, clothing, bricks, blocks, cement, tiles, chalk, lime, electric poles, agricultural tools, tin plates, nails, electric wire, and barbed wire. For the economy, the most significant of these are clothing/fabrics and rattan furniture. Manufacturing represented 16.5 percent of the GDP in 1999, up from 13.9 percent in 1995. Except for fabrics and clothing, most of these manufactured products are for local consumption. Laos' manufacturing export potential is currently limited by its status as a "non-market economy" restricting its access to U.S. and other developed country markets. Admission to the WTO and completion of a trade agreement with the United States are essential to enable Laos to have more secure access for its exports.

ELECTRICITY AND WATER.

Electric power generation is one of Lao's most significant industries. In 1998, the country produced 1.34 billion kWh of electric power. About 43 million cubic meters of water were produced and distributed, primarily in the 4 major urban areas for household and industrial use. Electricity and water production represented 2.3 percent of the GDP in 1999. As of the mid-1990s, only 1 percent of the country's vast electric potential had been exploited.

MINING.

The Lao PDR has an abundant supply of minerals. Gypsum, for example, is exported to Vietnam. Tin, coal, lignite, and limestone are also mined. In the Vanvieng area, there is a major cement works, established with the assistance of the Chinese. Mining and quarrying, however, represented only .051 percent of the GDP in 1999, and minerals are not yet a significant export. The major problem in exploiting Lao mineral resources is their inaccessibility.

CONSTRUCTION.

In recent years there have been a number of new construction projects mainly in the capital of Vientiane. International funding has assisted many of these projects. Among notable recent projects have been the Lao-Nippon Bridge, the new International Airport, the Lao Plaza Hotel, and the National Cultural Hall (with funding provided by the PRC). Construction in 1999 represented 2.6 percent of the GDP.

SERVICES

Services represented 27 percent of the Lao economy in 1999 and employed roughly 10 percent of the work-force. The largest component (37.2 percent) of the service sector is wholesale and retail trade. Perhaps the largest entities in this arena are Honda and Shell. Honda retails a wide variety of products, particularly motorcy- cles. With Laos' rapid economic development in the 1990s, many Lao in urban areas have up-graded from bicycles to motorcycles or scooters, or among elites from motorcycles to private cars or SUVs. Toyota, Pepsi Cola, and Bier Lao are also active retailers. In urban areas there are a large number of formal retail shops as well as a large informal economy . Those in the formal retail sector market a wide range of consumer goods. A large number of small family-owned stores sell a variety of low cost products for basic everyday needs. Those selling goods in the large informal economy are often selling agricultural products.

The next largest component of the service sector is represented by transportation, communications, and postal services (23 percent), followed by ownership and rental of dwellings (12.1 percent). The latter grew significantly in the 1990s with the presence of a growing expatriate community associated with diverse development aid activities who are in need of modern housing.

The public service still represents an important element of the service sector (11.6 percent), though the government, with assistance from organizations such as the World Bank has sought to reduce the size of the public sector. For the most part, the Lao government has used non-draconian methods to reduce the size of this sector. Considerable success has been achieved in reducing the size of the military, for example. The next most important component of the service sector is represented by hotels and restaurants (7.6 percent), reflective of the growing importance of tourism in the Lao economy.

TOURISM.

In the Lao service economy, tourism has been a major growth area. Between 1991 and 1995, tourism grew approximately 60-fold, and from 1995 to 2000 it has more than doubled. On a per capita basis, Laos has even more tourists than Thailand. The major tourist attractions of the country are its rich culture and many Buddhist temples; Luang Prabang, the former royal capital in the north and a world cultural heritage site; the majestic Mekong River which flows through the country; and shopping for Lao textiles and handicrafts in Vientiane. Laos is also noted for its genuinely friendly people who warmly welcome tourists. By April 1999, tourism was the country's highest revenue earner, contributing US$79.9 million to the Lao economy. Despite such economic contributions, tourism employs at most only 3 percent of the non-farm workforce. Tourist facilities have improved significantly in recent years. There are now large numbers of hotels, guesthouses, and restaurants in major cities. Both Vientiane and Luang Prabang now offer some up-scale tourist facilities.

BANKING.

In the early 1990s banking reforms were introduced which diversified Laos' banking system. These reforms led to the National Bank being separated from 7 state-owned commercial banks such as the Lao Foreign Trade Bank (BCEL) and 5 regional banks. The reforms also opened the sector to international banks from Thailand, Vietnam, and Malaysia. In 1999, 6 of the 8 state-run commercial banks were merged into just 2 entities. Thus, the Bank of the Lao People's Democratic Republic (the national bank) now monitors a total of 14 banks consisting of 4 government banks, 3 joint banks (for example, the Lao-Viet Bank), and 7 foreign banks (6 Thai and 1 Malaysian). This network of local and international banks provides standard banking and financial services for both the average citizen and the commercial community. This banking component represents 5 percent of Laos' service sector. A major current issue facing the industry relates to questions about the solvency of the banking system as a result of the Asian regional economic crisis.

INTERNATIONAL TRADE

In the 1990s there were considerable diversification of Lao exports. Laos' largest export earner is timber and furniture (28 percent of exports), followed by garments (19.9 percent), raw logs (10.6 percent), electricity (9.2 percent), manufactured products (8.6 percent), coffee (7.7 percent), agricultural products (5.5 percent), gold re-ex-port (4.7 percent), and motorcycle assembly (3.9 percent). With respect to garment exports, Nike, for example, is now sourcing some apparel production in Laos. Imports are comprised primarily of consumer goods (44.6 percent), capital goods (40.2 percent), and industrial inputs (11.9 percent).

Approximately 52 percent of Laos' imports are from neighboring Thailand, while only 22 percent of its exports go to Thailand, reflecting a strong negative trade balance with that country. In contrast, 42.7 percent of Laos' exports go to Vietnam, while only 3.9 percent of its imports are from that country. Thus, Laos has an extremely favorable trade balance with Vietnam. Other leading export destinations for Laos are in order of importance (after Vietnam and Thailand): France (6.3 percent), Germany (5.1 percent), and the U.K. (4.7 percent). Since the Lao PDR does not have most favored nation

status with the United States, it is difficult to export to the U.S. market. Major sources of imports (after Thailand and Vietnam) are Japan (1.6 percent) and Hong Kong (1.5 percent).

Prior to the communist revolution, Laos had a severe trade imbalance with exports being only a tiny fraction of imports. While Laos still imports much more than it exports, the ratio of exports to imports has steadily improved. In 1975, the first year of the current communist regime, Lao exports were only adequate to cover 12 percent of imports. In 1999, exports of US$271 million were sufficient to cover 55 percent of imports, which stood at US$497 million. Also, the total of exports plus imports divided by the GDP has also steadily increased, reflecting the internationalization of the Lao economy. By 1998 this ratio had reached 72 percent. To decrease its dependence on international aid and to alleviate poverty, the Lao government seeks to expand its exports. That is the primary rationale for its long-term plan to build more dams to produce electricity exports, an area in which Laos has a clear comparative advantage. Laos also has a comparative advantage in the export of textiles such as clothing and garments.

Laos' current trade deficit is financed by 2 primary sources: international aid, primarily provided by Japan, Australia, and Sweden; and growing financial remittances from Lao living overseas. The State Planning Committee in a December 1999 report indicated that the latter was the single most important source of income in the Vientiane Valley. Given the recent economic crisis, the government has also turned to both China and Vietnam for important economic assistance.

MONEY

Since the establishment of the Lao PDR in 1975, the country has experienced periods of both currency stability and instability with related fluctuations in inflation. As part of the New Economic Mechanism introduced in 1986, the policy was to have a single exchange rate determined by market forces. During the early and mid-1990s the Lao PDR achieved impressive macroeconomic stability. However, contagion from the Asian economic crisis, especially in neighboring Thailand, eventually affected the Lao PDR dramatically in 1998 and 1999. The Lao currency at one point was worth only one-tenth of its previous value. It has since improved to be worth about one-seventh of its previous value. This led to 87.4 percent inflation in 1998 and 134 percent inflation in 1999.

In the year 2000 the currency stabilized and inflation fell to 33 percent. Monetary policy is implemented by the Bank of the Lao PDR, but it is certainly directly influenced by economic policies of the Party and Government.

POVERTY AND WEALTH

Though Laos is an extremely poor country with 46.1 percent living below the material poverty line in 1993, the country does not have the gross economic inequalities typical of many developing countries. Rural farmers generally have their own land and are engaged in subsistence agriculture which provides for certain basic needs. Major problems for the rural poor are access to quality health care and education.

There are also serious regional income disparities primarily between urban centers and remote rural areas, often mountainous areas with a large proportion of ethnic nationalities. An average person in the richest province, Vientiane, has approximately 2 and a half times more income than the average individual in the poorest province, Huaphanh. The incidence of poverty in rural areas (53 percent) is double that of urban areas (24 percent). The areas most economically disadvantaged tend to be those more remote areas inhabited by diverse ethnic communities.

WORKING CONDITIONS

Because of the country's low population density and its former socialist economic system, unemployment has not been a serious problem in the Lao PDR. The visible urban unemployment rate in Laos was 3.5 percent overall in 1994. The large informal sector also provides opportunities for those who cannot find meaningful em-

ployment in the formal sector. The Lao PDR has a progressive labor law, which is extremely specific related to working age, minimum wage, and overtime payments, for example. This labor law primarily covers those employees working in the modern formal sector. Women and children are active in the labor force, particularly in the agricultural sector and informal economy. Those able to attain higher levels of education can gain access to work in the public sector, the modern private sector , or with various international agencies and organizations present in the Lao PDR. Those with superior English language skills are particularly advantaged in the modern, urban labor market.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1353-73. Reign of Fa Ngum, king of Lan Xang (the land of a million elephants), marks the beginning of recorded Lao history.

1633-90. The height of the Lan Xang kingdom occurs.

18TH CENTURY. Lan Xang breaks into 3 independent kingdoms.

19TH CENTURY. Lao kingdoms fall under the Siamese orbit, and many Lao people are repopulated to Siam as slave labor.

1890. French colonial rule in Laos begins.

1953. On 22 October, Laos achieves its independence from France.

1975. Declaration of the Lao People's Democratic Republic occurs on 2 December.

1981. First 5 Year Plan begins.

1986. New Economic Mechanism approved at Fourth Lao People's Revolutionary Party (LPRP) Congress paves the way for major economic reforms.

1994. Completion of Friendship Bridge across the Mekong River connects Laos and Thailand.

1997. Lao PDR becomes the eighth member of the Association of Southeast Asian Nations (ASEAN).

1998-99. Asian economic crisis contagion spreads to the Lao PDR, leading to free fall of the Lao kip and triple digit inflation.

2000. The Lao-Nippon Bridge across the Mekong River is completed.

2000-01. Macroeconomic stability is restored.

FUTURE TRENDS

With its low population density and favorable natural resources/people ratio, the Lao PDR has a potentially bright economic future. Assuming recovery from the Asian economic crisis, there should be growing demand in the long term for Laos' valuable energy exports, which will enable the country to become more economically self-sufficient and less dependent on international aid. There are many in the West who would like Laos to adopt a multi-party system similar to that in liberal democracies. Given the problems of money politics and instability in such systems, however, the Lao PDR is more oriented toward a single party political system to ensure stability and avoid policy gridlock often associated with unstable multiple party systems. Given the past economic performance of areas such as Hong Kong, Singapore, South Korea, Taiwan, and Malaysia, the Lao are confident that their current political system is compatible with dynamic economic growth and reaching its goal to liberate the country from underdevelopment and mass poverty by the year 2020.

DEPENDENCIES

Laos has no territories or colonies.

BIBLIOGRAPHY

Anderson, Kym. Lao Economic Reform & WTO Accession: Implications for Agriculture and Rural Development. Adelaide: Center for International Economic Studies, 1999.

Annual Report 1999. Vientiane: Bank of the Lao PDR, 1999.

Aubertin, Catherine. "Institutionalizing Duality: Lowlands and Uplands in the Lao PDR." IIAS Newsletter. Vol. 24, February 2001.

Basic Statistics of the Lao P.D.R. 1975-2000. Vientiane: StatePlanning Committee, National Statistics Center, 2000.

Bounthavy, Sisouphanthong, and Christian Taillard. Atlas of Laos: Spatial Structures of the Economic and Social Development of the Lao People's Democratic Republic. Copenhagen, Denmark: Nordic Institute of Asian Studies, 2000.

Bourdet, Yves. The Economics of Transition in Laos: From Socialism to ASEAN Integration. Northampton, MA: Edward Elgar Publishing, 2000.

Chazée, Laurent. The Peoples of Laos: Rural and Ethnic Diversities. Bangkok: White Lotus Press, 1999.

Economist Intelligence Unit. Country Profile: Laos. London: Economist Intelligence Unit, 2001.

Freeman, Nick. "Laos: Economy." Far East and Australasia 2001. 32nd ed. London: Europa Publications, 2001.

Fry, Gerald W. "The Future of the Lao PDR: Relations withThailand and Alternative Paths to Internationalization." New Laos, New Challenges, edited by Jacqueline Butler-Diaz. Tempe, AZ: Program for Southeast Asian Studies Monograph Series, Arizona State University, 1998.

Fry, Gerald W., and Manynooch Nitnoi Faming. "Laos." The Southeast Asia Handbook, edited by Patrick Heenan and Monique Lamontagne. London: Fitzroy Dearborn Publishers, 2001.

Hopkins, Susanna. "The Economy." Laos: A Country Study, edited by Andrea Matlas Savada. Washington, D.C.: Library of Congress, 1995.

"Laos." Asia 2001 Yearbook. Hong Kong: Far Eastern EconomicReview, 2000.

Murphy, Dervla. One Foot in Laos. London: John Murray, 1999.

National Human Development Report 1998. Vientiane: StatePlanning Committee, National Statistics Center, UNDP, 1998.

Osborne, Milton. The Mekong: Turbulent Past, Uncertain Future. New York: Atlantic Monthly Press, 2000.

Pham, Chi Do, editor. Economic Development in Lao P.D.R.: Horizon 2000. Vientiane: IMF and Bank of the Lao People's Democratic Republic, 1994.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed August 2001.

—Gerald W. Fry

Laos

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Lao People's Democratic Republic

PROFILE

Geography

Area: 236,800 sq. km. (91,430 sq. mi.); slightly larger than Utah.

Cities: Capital—Vientiane (2006 pop. est. 711,919). Other principal towns—Savannakhet, Luang Pra-bang, Pakse, Thakhek.

Terrain: Rugged mountains, plateaus, alluvial plains.

Climate: Tropical monsoon; rainy season (May to November); dry season (November to April).

People

Nationality: Noun and adjective—Lao (sing and pl.).

Population: (2007 est.) 6.5 million.

Annual growth rate: (2007) 2.4%.

Ethnic groups: Tai-Kadai language family (6 ethnic groups)—66.2%; Austro-Asiatic (Mon-Khmer and Viet-Muong) language family (30 ethnic groups)—22.8%; Hmong-Yao (2 ethnic groups)—7.4%; Tibeto-Bur-man (8 ethnic groups)—2.7%; other ethnic groups (including Vietnamese and Chinese)—0.9%.

Religions: Buddhism—65%; Christianity—1.3%; others (including animism, Ba’hai, and Islam)-33.7%.

Languages: Lao (official), French, English, and various ethnic languages.

Education: Literacy—69%.

Health: (2007) Infant mortality rate-81.4/1,000. Life expectancy—56 years.

Work force: (2.1 million, 2006) Agriculture—78.5%; industry and services—21.5% (2006).

Government

Type: Communist state.

Government branches: Executive—President (head of state); Chairman, Council of Ministers (prime minister and head of government); 11-member Politburo; 55-member Central Committee. Legislative—115-seat National Assembly. Judicial—district, provincial, and a national Supreme Court.

Political parties: Lao People's Revolutionary Party (LPRP)—only legal party.

Political subdivisions: 16 provinces, and Vientiane prefecture.

Economy

GDP: (2006 est.) $2.79 billion.

Per capita income: (2006) $572.

GDP growth rate: (2006 est.) 8.3%.

Natural resources: Hydroelectric power, timber, and minerals.

Agriculture: (43.4% of GDP, 2006 est.) Primary products—glutinous rice, coffee, corn, sugarcane, vegetables, tobacco, ginger, water buffalo, pigs, cattle, poultry, sweet potatoes, cotton, tea, and peanuts.

Industry: (30.6% of GDP, 2006 est.) Primary types—garment manufacturing, electricity production, copper, gold, gypsum, and tin mining, wood and wood processing, cement manufacturing, agricultural processing, and tourism.

Industrial growth rate: (2006 est.) 13%.

Services: (2006 est.) 26% of GDP.

Trade: Exports (2006 est.)—$593.6 million: garments, gold and copper, electricity, wood and wood products, coffee and other agricultural products, rattan, and tin. Major markets—Thailand, Vietnam, France, and Germany. Imports (2006 est.)— $1.092 billion. Major imports—fuel, food, consumer, goods, machinery and equipment, vehicles and spare parts. Major suppliers—Thailand, China, Vietnam, Singapore.

PEOPLE

Laos’ population was estimated at 6.5 million in mid-2007, dispersed unevenly across the country. Most people live in valleys of the Mekong River and its tributaries. Vientiane prefecture, the capital and largest city, had about 711,919 residents in 2006. The country's population density was 27/sq. km.

About half the country's people are ethnic Lao, the principal lowland

inhabitants as well as the politically and culturally dominant group. The Lao are descended from the Tai people who began migrating southward from China in the first millennium A.D. Mountain tribes of Hmong-Yao, and Tibeto-Burman (Kor and Phounoy) as well as Tai ethno-lin-guistic heritage are found in northern Laos. Until recently, they were known as Lao Sung or highland Lao. In the central and southern mountains, Austro Asiatic (Mon-Khmer and Viet-Muong) tribes, formerly known as Lao Theung or mid-slope Lao, predominate. Some Vietnamese and Chinese minorities remain, particularly in the towns, but many left in two waves-after partial independence in the late 1940s and again after 1975.

The predominant religion is Theravada Buddhism. Animism is common among the mountain tribes. Buddhism and spirit worship coexist easily. There also are small numbers of Christians and Muslims.

The official and dominant language is Lao, a tonal language of the Tai linguistic group. Minorities speak an assortment of Mon-Khmer, Hmong-Yao, and Tibeto-Burman languages. French, once common in government and commerce, has declined in usage, while knowledge of English—the language of the Association of Southeast Asian Nations (ASEAN)—has increased in recent years. The government is encouraging officials and students to learn English. High school students are required to take either French or English; the majority today choose English. The government plans to introduce English at the primary school level by 2010.

HISTORY

Laos traces its first recorded history and its origins as a unified state to the emergence of the Kingdom of Lan Xang (literally, “million elephants”) in 1353. Under the rule of King Fa Ngum, this powerful and wealthy kingdom covered much of what today is Thailand and Laos. His successors, especially King Setthathirat in the 16th century, helped establish Buddhism as the predominant religion of the country. By the 17th century, the kingdom of Lan Xang entered a period of decline marked by dynastic struggle and conflicts with its neighbors. In the late 18th century, the Siamese (Thai) established suzerainty over much of what is now Laos. The region was divided into principalities centered on Luang Prabang in the north, Vientiane in the center, and Champassak in the south. Following their colonization of Vietnam, the French supplanted the Siamese and began to integrate all of Laos into the French empire. The Franco-Siamese treaty of 1907 defined the present Lao boundary with Thailand.

During World War II, the Japanese occupied French Indochina, including Laos. King Sisavang Vong of Luang Prabang was induced to declare independence from France in 1945, just prior to Japan's surrender. During this period, nationalist sentiment grew. In September 1945, Vientiane and Champassak united with Luang Prabang to form an independent government under the Free Laos (Lao Issara) banner. The movement, however, was short-lived. By early 1946, French troops reoccupied the country and conferred limited autonomy on Laos following elections for a constituent assembly.

During the first Indochina war between France and the communist movement in Vietnam, Prince Souph-anouvong formed the Pathet Lao (Land of Laos) resistance organization committed to the communist struggle against colonialism. Laos was not granted full sovereignty until the French defeat by the Vietnamese and the subsequent Geneva peace conference in 1954. Elections were held in 1955, and the first coalition government, led by Prince Souvanna Phouma, was formed in 1957. The coalition government collapsed in 1958, amidst increased polarization of the political process. Rightist forces took over the government.

In 1960, Kong Le, a paratroop captain, seized Vientiane in a coup and demanded the formation of a neutralist government to end the fighting. The neutralist government, once again led by Souvanna Phouma, was not successful in holding power. Rightist forces under Gen. Phoumi Nosavan supplanted it later that same year. Subsequently, the neutralists allied themselves with the communist insurgents and began to receive support from the Soviet Union. Phoumi Nosavan's rightist regime received support from the United States.

A second Geneva conference, held in 1961-62, provided for the independence and neutrality of Laos. Soon after accord was reached, the signatories accused each other of violating the terms of the agreement, and with superpower support on both sides, the civil war soon resumed. Although Laos was to be neutral, a growing American and North Vietnamese military presence in the country increasingly drew Laos into the second Indochina war (1954-75). For nearly a decade, Laos was subjected to extremely heavy bombing as the U.S. sought to interdict the portion of the Ho Chi Minh Trail that passed through eastern Laos. Unexploded ordnance, particularly cluster munitions, remains a major problem.

In 1972, the communist People's Party renamed itself the Lao People's Revolutionary Party (LPRP). It joined a new coalition government in Laos soon after the Vientiane cease-fire agreement in 1973. Nonetheless, the political struggle among communists, neutralists, and rightists continued. The fall of Saigon and Phnom Penh to communist forces in April 1975 hastened the decline of the coalition in Laos. Several months after these communist victories, the Pathet Lao entered Vientiane. On December 2, 1975, the king abdicated his throne and the communist Lao People's Democratic Republic (LPDR) was established.

The new communist government imposed centralized economic decision-making and broad security measures, including control of the media and the arrest and incarceration of many members of the previous government and military in “re-education camps.” These draconian policies and deteriorating economic conditions, along with government efforts to enforce political control, prompted an exodus of lowland Lao and ethnic Hmong from Laos. About 10% of the Lao population sought refugee status after 1975, many of whom resettled in third countries, including the United States. From 1975 to 1996, the U.S. resettled some 250,000 Lao refugees from Thailand, including 130,000 Hmong. The last major resettlement to the United States of about 15,000 Hmong from the Wat Tham Krabok camp was in 2004.

Over time, the Lao Government closed the re-education camps and released most political prisoners. By the end of 1999, more than 28,900 Hmong and lowland Lao had voluntarily repatriated to Laos—3,500 from China and the rest from Thailand. The Office of the United Nations High Commissioner for Refugees (UNHCR) monitored returnees for a number of years and reported no evidence of systemic persecution or discrimination against returnees per se. UNHCR closed its Laos office at the end of 2001.

GOVERNMENT AND POLITICAL CONDITIONS

The only legal political party is the Lao People's Revolutionary Party (LPRP). The head of state is President Choummaly Sayasone. The head of government is Prime Minister Bouasone Bouphavanh. Government policies are determined by the party through the all-powerful eleven-member Politburo and the 55-member Central Committee. Important government decisions are vetted by the Politburo. Laos adopted its Constitution in 1991, amending it most recently in 2003. The National Assembly, which has added seats at every election, approves all new laws, although the executive branch retains the authority to issue binding decrees. The most recent elections took place in June 2006, when the National Assembly was expanded to 115 members. Laos has enacted a number of new laws in recent years, but the country is still governed largely through the issuance of decrees.

Since the end of the Indochina conflict, a low-level insurgency against the regime has continued. Incidents have included a series of bombings in Vientiane during the summer of 2000 and renewed spikes of violence in 2003 and 2004 against various types of land transportation and public markets. There were reports of continued fighting in 2005 and 2007. In late 2006 and 2007, several hundred former fighters and family members surrendered to Lao authorities. The United States does not endorse or support violent activities carried out against the Lao Government.

Principal Government Officials

Last Updated: 2/1/2008

Lao officials are addressed by the first element in their names.

Pres.: CHOUMMALI Saignason, Lt. Gen.

Vice Pres.: BOUN-GNANG Volachit

Prime Min.: BOUASONE Bouphavanh

Dep. Prime Min.: ASANG Laoli, Maj. Gen.

Dep. Prime Min.: DOUANGCHAI Phichit

Dep. Prime Min.: SOMSAVAT Lengsavat

Dep. Prime Min.: THONGLOUN Sisoulit

Min. of Agriculture & Forestry: SITAHENG Latsaphone

Min. of Commerce: SOULIVONG Daravong

Min. of Communications, Transport, Posts, & Construction: SOMMATH Pholsena

Min. of Education: SOMKOT Mangnormek

Min. of Energy & Mining: BOSAIKHAM Vongdala

Min. of Finance: SOMDY Douangdy

Min. of Foreign Affairs: THONGLOUN Sisoulit

Min. of Industry & Commerce: NAM Vignaket

Min. of Information & Culture: MOUNKEO Olaboun

Min. of Justice: CHALEUAN Yapaoher

Min. of Labor & Social Welfare: ONECHANH Thammavong

Min. of National Defense: DOUANGCHAI Phichit, Maj. Gen.

Min. of Public Health: PONMEK Dalaloi, Dr.

Min. of Public Security: THONGBANH Sengaphone

Min. to the Prime Minister's Office & Head of Public Admin. & Civil

Authority: BOUNPHENG Mounphosay

Min. to the Prime Minister's Office: BOUASY Lovansay

Min. to the Prime Minister's Office: KHAM-OUANE Bouppha

Min. to the Prime Minister's Office: ONNEUA Phommachanh

Min. to the Prime Minister's Office: SAISENGLI Tengbliachu

Min. & Chmn. of National Mekong Committee: KHAMLOUAD Sitlakone

Min. & Chmn. of National Tourism Authority: SOMPHONG Mongkhonvilay

Min. & Head of Cabinet, President's Office: SOUBANH Sritthirath

Min. & Head of Govt. Secretariats: CHEUANG Sombounkhanh

Min. & Head of Science, Technology, & Environment Agency: BOUNTIEM Phitsamay

Chmn. Planning & Investment Committee: SOULIVONG Dalavong

Chmn. State Control Commission: ASANG Laoli, Maj. Gen.

Governor, National Bank: PHOUPHET Khamphounvong

Ambassador to the US: PHIANE Philakone

Permanent Representative to the UN, New York: KANIKA Phommachanh

Laos maintains an embassy in the United States at 2222 S Street NW, Washington, D.C. 20009 (tel: 202-332-6416).

ECONOMY

Laos is a poor, landlocked country with an inadequate infrastructure and a largely unskilled work force. The country's per capita income in 2006 was estimated to be $572. Agriculture, mostly subsistence rice farming, dominates the economy, employing an estimated 78% of the population and producing 43.4% of GDP. Domestic savings are low, forcing Laos to rely heavily on foreign assistance and concessional loans as investment sources for economic development. In 2006, donor-funded programs accounted for 13% of GDP and 70% of the capital budget. In 2006, the country's foreign debt was estimated at $3.2 billion.

Following its accession to power in 1975, the communist government imposed a harsh, Soviet-style command economy system, replacing the private sector with state enterprises and cooperatives; centralizing investment, production, trade, and pricing; and creating barriers to internal and foreign trade. Within a few years, the Lao Government realized its economic policies were preventing, rather than stimulating, growth and development. No substantive reform was introduced, however, until 1986 when the government announced its “new economic mechanism” (NEM). Initially small in scale, the NEM was expanded to include a range of reforms designed to create conditions conducive to private sector activity. Prices set by market forces replaced government-determined prices. Farmers were permitted to own land and sell crops on the open market. State firms were granted increased decision-making authority and lost most of their subsidies and pricing advantages. The government set the exchange rate close to real market levels, lifted trade barriers, replaced import barriers with tariffs, and gave private sector firms direct access to imports and credit.

In 1989, the Lao Government reached agreement with the World Bank and the International Monetary Fund on additional reforms. The government agreed to expand fiscal and monetary reform, promote private enterprise and foreign investment, privatize or close state firms, and strengthen banking. In addition, it agreed to maintain a market exchange rate, reduce tariffs, and eliminate unneeded trade regulations. A liberal foreign investment code was enacted and appears to be slowly making a positive impact in the market. The process of economic reform continues.

These reforms led to increased availability of goods and economic growth that has continued since the early 1990's, despite short-term economic setbacks resulting from the 1997 Asian financial crisis. The economy continues to be dominated by an unproductive agricultural sector operating largely outside the money economy, and the public sector continues to play an important role. Tourism is a growing industry and important source of foreign exchange. The Government of Laos is promoting infrastructure development, especially in the hydropower and mining sectors. Several large hydropower projects currently under construction are expected to increase national revenue significantly once completed.

International indices rate Laos poorly on transparency and ease of doing business. Corruption continues to hamper economic development. Laos has begun the World Trade Organization accession process, with the intention of joining that organization by 2010.

FOREIGN RELATIONS

The government that assumed power in December 1975 aligned itself with the Soviet bloc and adopted a hostile posture toward the West. In ensuing decades, Laos maintained close ties with the former Soviet Union and its eastern bloc allies, and depended heavily on the Soviet Union for most of its foreign assistance. With the collapse of the Soviet Union, Laos has sought to improve relations with its regional neighbors. Laos was admitted into the Association of Southeast Asian Nations (ASEAN) in July 1997 and applied to join the World Trade Organization (WTO) in 1998. The government hopes to accede to the WTO by 2010. Currently, Laos’ foreign policy concentrates on its immediate neighbors. Laos generally maintains a low profile in the larger international arena, although it has been playing an increasing role in activities of the Non-Aligned Movement.

Laos maintains a “special relationship” with Vietnam and formalized a 1977 treaty of friendship and cooperation that created tensions with China. Although the two were allies during the Vietnam War, the China-Vietnam conflict in 1979 led to a sharp deterioration in Sino-Lao relations. These relations began to improve in the late 1980s. In 1989 Sino-Lao relations were normalized. Today China is becoming a major player in Laos; Chinese investment in Laos is increasing at a rapid rate, bringing with it a growing number of Chinese workers. Thailand remains the largest single foreign investor in Laos. In 2003, Laos and Thailand signed agreements to cooperate on cross-border, labor, and counternar-cotics issues. Laos and Thailand signed a joint communique in March 2007, the first in 20 years, covering infrastructure development, avian influenza, border control, and Hmong migration issues.

Laos is a member of the following international organizations: Agency for Cultural and Technical Cooperation (ACCT), Association of Southeast Asian Nations (ASEAN), ASEAN Free Trade Area (AFTA), ASEAN Regional Forum, Asian Development Bank, Colombo Plan, Economic and Social Commission for Asia and Pacific (ESCAP), Food and Agriculture Organization (FAO), G-77, International Bank for Reconstruction and Development (World Bank), International Civil Aviation Organization (ICAO), International Development Association (IDA), International Fund for Agricultural Development (IFAD), International Finance Corporation (IFC), International Federation of Red Cross and Red Crescent Societies, International Labor Organization (ILO), International Monetary Fund (IMF), Interpol, International Olympic Commission (IOC), International Telecommunications Union (ITU), Mekong River Commission (MRC), Non-Aligned Movement (NAM), Permanent Court of Arbitration (PCA), UN, United Nations Convention on Trade and Development (UNCTAD), United Nations Educational, Social and Cultural Organization (UNESCO), United Nations Industrial Development Organization (UNIDO), Universal Postal Union (UPU), World Federation of Trade Unions, World Health Organization (WHO), World Intellectual Property Organization (WIPO), World Meteorological Organization (WMO), World Tourism Organization, and World Trade Organization (observer).

U.S.-LAO RELATIONS

The United States opened a legation in Laos in 1950. Although diplomatic relations were never severed, U.S.-Lao relations deteriorated during in the post-Indochina War period after 1975. The relationship remained cool until 1982 when efforts at improvement began. Full diplomatic relations were restored in 1992 with a return to ambassadorial-level representation. Accounting for Americans missing in Laos from the Vietnam War has been a special focus of our bilateral relationship. Since the late 1980s, joint U.S. and Lao teams have conducted a series of excavations and investigations of sites related to cases of Americans missing in Laos.

Counternarcotics activities are also an important part of the bilateral relationship. The United States and Laos cooperate closely on opium crop control projects that have helped to bring about a 96% decline in poppy cultivation, from 42,000 hectares in 1989 to 1700 hectares in 2006. Laos, however, remains on the U.S. list of major opium producers. U.S.-sponsored demand reduction programs have increased Laos’ capacity to treat both narcotic and amphetamine addiction. The U.S. also provides law enforcement assistance to help contend with the rapid growth in methamphetamine abuse and crime that has occurred in Laos since 2003. The U.S. Government provided more than $13.4 million in foreign assistance to Laos in FY 2006, in areas including unexploded ordnance clearance and removal, health and avian influenza, education, economic development, and governance.

In December 2004, the President signed into law a bill extending normal trade relations to Laos; in February 2005, a Bilateral Trade Agreement between the United States and Laos entered into force. There has been a consequent rise in Lao exports to the U.S., although the volume of trade remains small in absolute terms. Bilateral trade reached $15.7 million in 2006, compared with $8.9 million in 2003. The Lao Government is working to implement the provisions of the Bilateral Trade Agreement while simultaneously seeking to join the World Trade Organization.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

VIENTIANE (E) Rue Bartolonie, B.P. 114, APO/FPO Unit 8165, Box V, APO, AP 96546-0001, (856) (21) 26-7000, Fax (856) (21) 26-7190, INMARSAT Tel 683-132825/826/827, Workweek: Monday-Friday, 8:00am-5:00pm, Website: http://vientiane.usembassy.gov.

TRAVEL

Consular Information Sheet

September 5, 2007

Country Description: The Lao People's Democratic Republic (Laos) is a poor, developing country ruled by an authoritarian, Communist, one-party government. Political power is centralized in the Lao People's Revolutionary Party. Services and facilities for tourists are adequate in the capital, Vientiane, and the UNESCO World Heritage town of Luang Pra-bang, but are extremely limited in other parts of the country.

Entry Requirements: A passport and visa are required. The Lao Ministry of Foreign Affairs states that visas can be issued upon arrival in Laos to U.S. citizen tourists with two passport-size photographs and $35 at the following ports of entry: Wattay Airport, Vientiane; Friendship Bridge, Vientiane, and Luang Pra-bang Airport. Persons who obtain entry visas prior to their arrival in Laos may also enter at the following international entry points: Boten-Bohan, Huaixay, Khammouane-Nakhonphanom, Savannakhet-Mukdahan, Vangtao-Chong Mek, Pakse Airport, Daensayanh-Laobao, Namphao-Kaopae, and Namkan. Foreign tourists are generally admitted to Laos for 30 days. The Department of Immigration in Vientiane will extend 30-day tourist visas up to an additional 60 days for a fee of $2 per day. Foreigners who overstay their visas in Laos risk arrest and upon departure will be fined $10 for each day of overstay.

The Lao government requires payment of visa fees and fines in U.S. dollars. Thai baht and Lao kip may sometimes be accepted for the fees, but at unfavorable exchange rates.

Foreign tourists who wish to obtain a visa in advance may contact a Lao embassy or consulate. In the United States, visas and further information about Lao entry requirements can be obtained directly from the Embassy of the Lao People's Democratic Republic, 2222 S St. NW, Washington DC 20008, tel: 202-332-6416, fax: 202-332-4923.

Business visas can only be arranged in advance; a company or individual “sponsor” must contact the Lao Ministry of Foreign Affairs (MFA) in Vientiane and request a visa for the traveler by offering a “guarantee.” Once this request is approved by the MFA, the approval will be communicated to the Lao Embassy in Washington, DC and the U.S. traveler may then apply for the business visa. This process normally takes 1–3 months. After the traveler's arrival, these visas can usually be extended for one month.

U.S. citizens should not attempt to enter Laos without valid travel documents or outside of official ports of entry. Unscrupulous travel agents have sold U.S.-citizen travelers false Lao visas, which have resulted in those travelers being denied entry into Laos. Persons attempting to enter Laos outside of official ports of entry risk arrest or other serious consequences.

Immigration offices at some of the less-used land border crossing points are not well marked. Travelers should make sure that they complete immigration and customs formalities when they enter Laos. Travelers who enter Laos without completing these formalities may be subject to fine, detention, imprisonment, and/or deportation.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/ exit points. These often include requiring documentary evidence of relationship, such as the child's birth certificate, and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/ departure.

At Wattay Airport (Vientiane) and the Luang Prabang Airport, there is an international airport departure tax of US$10. At the Friendship Bridge (Vientiane, Laos—Nong Khai, Thailand border crossing) there is a 5,000 kip (or 20 Thai baht) exit tax. Visit the Embassy of Laos web site for the most current visa information.

Safety and Security: In recent years there have been periodic attacks and other incidents of violence by anti-government forces. Between February 2003 and November 2004, there were bombings in Vientiane, Savannakhet, and other cities and provinces, including Xieng Khouang, Sayabury, Houaphan, and Saysomboun. Between February and April 2003, armed attacks on buses and other vehicles on Route 13 (Vang Vieng to Luang Prabang) and Route 7 (junction Route 13 to Phonsavan) killed at least 22 persons. Small bombings and attacks on remote roads, as well as other incidents, have occurred as recently as January 2005. In February and March 2007, the Embassy received reports from multiple sources of sporadic fighting between Lao Government forces and unidentified regime opponents and of increased movement by Lao Government forces in the area of Vang Vieng in northern Vietiane Province.

In light of these incidents, the Department of State recommends that U.S. citizens traveling or residing in Laos exercise caution in public places and be alert to their surroundings, since the locations of future incidents are unpredictable. Travelers are advised to be cautious when traveling the roads of Laos and to check with local authorities, transport companies, other travelers, and/or the Embassy regarding any recent developments prior to travel. Road obstacles such as changes in surface conditions due to the weather occur frequently.

After some attacks, the Lao Government has shut down telecommunications and stopped all transport on main roads for up to several days. Travelers should comply with requests to stop at checkpoints and roadblocks. U.S. citizens, especially those considering travel outside urban centers, are advised to contact relevant Lao government offices, such as Lao Immigration Police Headquarters in Vientiane, the Lao Tourist Police, local police and customs offices, or contact the U.S. Embassy for the most current security information. To avoid trouble with the authorities, U.S. citizens traveling outside of normal tourist areas or contemplating any unusual activity (including, but not limited to, engaging in business, extensive photography, or scientific research of any kind) should consider seeking advance permission from the Village Chief, District Head, Provincial Governor, or National Tourism Authority, as appropriate.

More than 100 casualties per year are caused by over 500,000 tons of unexploded ordnance (UXO) in Laos left over from the Vietnam War. Savanna-khet, Xieng Khouang, Saravane, Khammouane, Sekong, Champassak, Houaphan, Attapeu, and Luang Pra-bang Provinces, parts of Vientiane Province and the former Saysomboun Special Zone are severely contaminated by UXO. In addition, numerous mine fields are left over from the war, including mine fields along Route 7 (from Route 13 to the Vietnam border), Route 9 (Savannakhet to the Vietnam border), and Route 20 (Pakse to Saravane). While traveling in Laos, U.S. citizens should never pick up unknown metal objects and should avoid traveling off of well-used roads, tracks and paths.

U.S. citizens considering travel by air, road or river within Laos are advised to carefully evaluate the relative risks of the three modes of transport. Travelers should also exercise caution if contemplating swimming in rivers in Laos. Currents can be deceptive and strong.

Travelers should be aware that over the past several years a number of Lao-and Hmong-American citizens have been murdered in northern and northeastern Thailand near the border with Laos. In September 2004 a Lao-American was shot and killed by two unidentified males in Nong Khai, Thailand. In January 2005, a Hmong-American citizen was murdered in Nong Khai along with three Hmong-Thai citizens. In November 2005, a Hmong-American was murdered in front of his hotel in Nong Khai by a man wearing a balaclava to hide his identity. In January 2006, a Lao-American husband and wife were murdered at a temple in Nong Khai, and, in December 2006, in Ubon Ratchathani two Lao-Americans were shot as they exited a bus from Laos by a man on a motorcycle. During the same period, a number of non-Americans with ties to Laos have also been murdered in this region of Thailand. In addition, in March 2006 a Hmong-American disappeared from his residence in Chiang Mai along with seven other individuals. No arrests have been made in many of these cases. If U.S. citizens, particularly Lao-Americans or Hmong-Americans, must travel to these areas, they should exercise caution and remain vigilant with regard to their personal security. It is also recommended that persons wishing to travel to border areas check first with the Thai Police and the U.S. Consulate General in Chiang Mai or the U.S. Embassy in Bangkok or the U.S. Embassy in Vientiane.

U.S. citizens are also advised to exercise caution in remote areas along the border with Burma. Bandits, drug traffickers, and other people pursuing illegal activities operate in these border areas, as do armed insurgent groups opposed to the government of Burma.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: While Laos generally has a low rate of violent crime, it is not immune from crime. While in Laos, Americans should remain aware of their surroundings and exercise appropriate security precautions. With the introduction of methamphetamines and other illicit drugs, thefts and assaults in Vientiane have increased and some have turned violent. Bag snatching is increasingly frequent and sexual assaults have also occurred. Residential burglary is commonplace. Expatriates attempting to report burglaries in progress to the police often find that police telephones are not answered or they are informed that the police are not authorized to respond to criminal activity at night or that they have no transportation. U.S. citizens who move to Vientiane are encouraged to contact the U.S. Embassy for security advice.

Travelers in Vientiane should exercise caution, particularly after dark, at roadside restaurants and stalls near the banks of the Mekong River. Foreigners are often the victims of purse snatchings while sitting down to eat or while riding bicycles or motorcycles in this area. To help ensure the security of valuables and documents carried on their person, travelers may wish to carry them in a bag that cannot be easily stolen. U.S. citizens traveling to Vang Vieng should be aware that some tourists have been robbed and assaulted while walking alone to the caves on the far side of the Nam Song River. Several people have drowned during the rainy season while inner-tubing or swimming in the Nam Song River. Camping at night anywhere except in authorized campgrounds in national parks is dangerous.

Many restaurants in popular tourist locations offer menu items, particularly, “pizzas,” “shakes” or “teas” which may contain unknown substances or opiates. These products are often advertised as “happy” or “special” items. These unknown foods and drinks can be dangerous, causing illness and death.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical facilities and services in Laos are limited and do not meet Western standards. U.S. citizens often seek medical care in Thailand. The Friendship Bridge linking Vientiane, Laos, to Nong Khai, Thailand, is open daily 6:00 a.m. to 10:00 p.m. Officials generally will allow travelers to cross after hours in cases of medical emergency. AEK International Hospital (tel: 66-42-342-555) and North Eastern Wattana General Hospital, both in Udorn, Thailand (tel: 66-1-833-4262) have English-speaking staff accustomed to dealing with foreign patients. Nong Khai Wattana Hospital in Nong Khai, Thailand (tel: 66-1-833-4262) can handle most simple medical procedures. Ambulances for both AEK International Hospital and Nong Khai Wattana Hospital have permission to cross the Friendship Bridge to collect patients from Vientiane. In Vientiane, the Setthatirat Hospital ambulance (tel: 021-413-720) can take patients to Thailand. The Department of State assumes no responsibility for the professional ability or reputation of these hospitals.

Avian Influenza: The Centers for Disease Control (CDC), the World Health Organization (WHO), and Lao authorities have confirmed the presence in Laos of the H5N1 strain of avian influenza, commonly known as “bird flu.” In 2007, two Lao nationals died after contracting the H4N1 virus. Travelers to Laos and other countries affected by the virus are cautioned to avoid poultry farms, contact with animals in live food markets, and any surfaces that appear to be contaminated with feces from poultry or other animals. In addition, the CDC and WHO recommend eating only fully cooked poultry and eggs. For the most current information and links on avian influenza in Laos, see the State Department's Avian Influenza Fact Sheet or visit the website of the U.S. Embassy in Laos.

There is a problem with counterfeit pharmaceuticals throughout Southeast Asia. American citizens should be aware of this problem and purchase pharmaceuticals only through the most reputable pharmacies with a physician's prescription.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Laos is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

The number of road accidents and fatalities in Laos has risen sharply in the last decade as the number of motor vehicles has increased. U.S. citizens involved in traffic accidents have been barred from leaving Laos before paying compensation for property damage or injuries, regardless of who was at fault.

Traffic in Laos is chaotic and road conditions are very rough. Few roads have lane markings. Where lane markings, road signs, and stoplights do exist, they are widely ignored. Many drivers are unlicensed and uninsured. Driving under the influence of alcohol or illegal drugs is not uncommon, and penalties for such offenses may not be enforced. Theoretically, traffic moves on the right, but vehicles use all parts of the road. Motorcyclists pay little or no heed to cars. Motorcycles carry as many as five people, greatly impeding the drivers’ ability to react to traffic. The evening hours are particularly dangerous. Road construction sites are poorly marked, appear with no advance warning, and can be difficult to see at night. Roads are poorly lit, many vehicles have no operating lights, few bicycles have reflectors, and trucks without reflectors commonly park on unlit roads.

Public transportation is unreliable and is limited after sunset. The most common form of public transport is three-wheeled, open-sided taxis called “tuk-tuks.” Automobile taxis or cars for hire are available at the airport, the Friendship Bridge, and most major hotels. Tuk-tuks and taxis are frequently in poor repair, and drivers generally speak little or no English. Inter-city transport is provided by buses, pickups, and trucks, which are also often in poor repair.

Emergency services in Laos are either unreliable or non-existent. Lao road traffic regulations require any driver coming upon a road accident to assist in transporting injured persons to a hospital. Emergency telephone numbers in Vientiane are Fire: 190, Ambulance: 195 or 021-413-720, Traffic Police: 191, Tourist Police: 021-251-128 (only for incidents involving tourists).

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Laos, the U.S. Federal Aviation Administration (FAA) has not assessed the Lao Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA's Internet web site at http://www.faa.gov.

Travel Of Foreigners Within Laos: The Lao tourist police have informed foreign tourists that a licensed Lao tour guide must accompany any group of more than 5 foreign tourists; however, this regulation does not appear to be strictly enforced. The authorities may restrict travel in rural areas outside of popular tourist destinations. Restricted areas may not be marked or even widely known by local citizens. If traveling without a reputable tour guide who is aware of local conditions, travelers should consult with local authorities before entering remote areas away from obvious tourist destinations.

Lao citizens who wish to have a foreign citizen—including a family member—stay in their home must obtain prior approval from the village chief. The foreigner may be held responsible if the Lao host has not secured prior permission for the visit. American citizens are strongly advised to ensure that such permission has been sought and granted before accepting offers to stay in Lao homes.

Security personnel may at times place foreign visitors under surveillance. Hotel rooms, telephones and fax machines may be monitored, and personal possessions in hotel rooms may be searched. Taking photographs of anything that could be perceived as being of military or security interest may result in problems with the local authorities.

Dual Nationality: Dual nationality is prohibited under the Law on Lao Nationality. The Lao Government holds that persons lose their Lao citizenship if they take a foreign citizenship, and, in some cases, if they reside in a foreign country for an extended period of time. The Law on Lao Nationality holds that if one or both parents of a child are Lao nationals who have not permanently settled in another country, then the child is a Lao citizen, even if the child is born outside Laos.

When the child of a U.S. citizen parent and a Lao citizen parent is born in Laos, the Lao Government generally will not recognize the child as a U.S. citizen, and generally will not permit the child to depart Laos on a U.S. passport. Provided the child meets all other criteria for obtaining U.S. citizenship, however, the U.S. Embassy in Vientiane may still issue a U.S. passport to the child. In addition to being subject to all Lao laws affecting U.S. citizens, individuals whom the Lao government regards as possessing Lao nationality may also be subject to other laws that impose special obligations on citizens of that country.

Specific questions on dual nationality may be directed to Overseas Citizens Services, Department of State, SA-29, 4th Floor, 2201 C Street NW, Washington DC 20520, or to the U.S. Embassy in Vientiane.

Relationships With Lao Citizens: The Lao Government prohibits sexual contact between foreign citizens and Lao nationals except when the two parties have been married in accordance with Lao Family Law. Any foreigner who enters into a sexual relationship with a Lao national may be interrogated, detained, arrested, or jailed. Lao police have confiscated passports and imposed fines of up to $5000 on foreigners who enter into disapproved sexual relationships. The Lao party to the relationship may also be jailed without trial. Foreigners are not permitted to invite Lao nationals of the opposite sex to their hotel rooms; police may raid hotel rooms without notice or consent.

Foreign citizens intending to marry Lao nationals are required by Lao law to obtain prior permission from the Lao Government. The formal application process can take as long as a year. American citizens may obtain information about these requirements from the U.S. Embassy in Vientiane. The Lao Government will not issue a marriage certificate unless the correct procedures are followed. Any attempt to circumvent Lao regulations may result in arrest, imprisonment, a fine of $500-$5000, and deportation. Foreigners who cohabit with or enter into a close relationship with Lao nationals may be accused by Lao authorities of entering into an illegal marriage and be subject to these same penalties. Foreign citizens who wish to become engaged to a Lao national are required to obtain prior permission from the chief of the village where the Lao national resides. Failure to obtain prior permission can result in a fine of $500-$5000. Lao police frequently impose large fines on foreign citizens a few days after they hold an engagement ceremony with a Lao citizen based on the suspicion that the couple subsequently had sexual relations out of wedlock.

Marriage: A Lao Prime Ministerial decree requires that marriages of Lao citizens abroad be registered with Lao embassies in order to be legal in Laos. If an American citizen marries a Lao citizen in the U.S. and then the couple comes to Laos, the American could be subject to penalties under the Lao law governing sexual relationships (above) if the marriage has not been registered beforehand with a Lao Embassy.

Religious Workers: Religious proselytizing or distributing religious material is strictly prohibited. Foreigners caught distributing religious material may be arrested or deported. The Government of Laos restricts the importation of religious texts and artifacts. While Lao law allows freedom of religion, the Government registers and controls all associations, including religious groups. Meetings, even in private homes, must be registered and those held outside of established locations may be broken up and the participants arrested.

River Travel: River travel is common in Laos, but safety conditions do not conform to U.S. standards. In particular, travel by speedboat (local term “fast boat”) is dangerous and should be avoided, particularly during the dry season. Travel on or across the Mekong River along the Thai border should be avoided at night. Lao militia forces have shot at boats on the Mekong after dark.

Photography and Other Restrictions: Taking photographs of anything that could be perceived as being of military or security interest—including bridges, airfields, military installations, government buildings, or government vehicles—may result in problems with authorities, including detention or arrest and confiscation of the camera. Tourists should be cautious when traveling near military bases and strictly observe signs delineating the military base areas. Military personnel have detained and questioned foreigners who have unknowingly passed by unmarked military facilities.

Because of the prohibition on religious proselytizing, travelers should use caution when taking photographs or videotaping non-Buddhist religious services. If attending public services or religious gatherings, foreigners should ask permission from the local police and civil authorities to photograph or videotape.

Local police may suspect persons using any kind of very sophisticated still or video camera equipment of being professional photographers, or possibly photojournalists which may lead to questioning, detention, arrest or deportation by the police.

Financial Transactions: There are network-connected ATMs in Vientiane, including those operated by the Foreign Commercial Bank of Laos, also know as the Banque Pour le Commerce Exterieur de Laos (BCEL). These machines are generally limited to withdrawals of the equivalent of about $100.00 in Lao kip only. Credit cards are accepted at major hotels and tourist-oriented businesses. Credit card cash advances and/or Western Union money transfers are available at banks in most provincial capitals and other tourist centers. While the government requires that prices be quoted in Lao kip, prices are often given in U.S. dollars or Thai baht, especially in tourist areas or at markets. The Lao Government requires payment in U.S. dollars for some taxes and fees, including visa fees and the airport departure tax.

Customs and Currency Regulations: Lao customs authorities may enforce strict regulations concerning temporary importation into or export from Laos of items such as firearms, religious materials, antiquities, foreign currency, cameras and other items. It is advisable to contact the Embassy of the Lao People's Democratic Republic in Washington for specific information regarding customs requirements. There are prohibitions against importing or exporting more than $2500 (U.S. dollar equivalent) of currency without authorization. Contact the Lao Embassy or Lao customs authorities for more details. In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses.

Persons violating Lao laws, even unknowingly, may be detained, arrested, imprisoned, or deported. Penalties for possession of, use of, or trafficking in illegal drugs in Laos are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Laos are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration web site, and to obtain updated information on travel and security within Laos. Americans without Internet access may register directly with the nearest U.S. Embassy or Consulate. By registering, American citizens make it easier for the Embassy or Consulate to contact them in case of emergency. The U.S. Embassy is located on Rue Bartholonie (near Tat Dam), in Vientiane; from the U.S., mail may be addressed to U.S. Embassy Vientiane, Unit 8165, Box V, APO AP 96546; Telephone (856-21) 267-000, recorded emergency information for American citizens (856-21) 267-111; duty officer emergency cellular telephone (856-20) 550-2016; Embassy-wide fax number (856-21) 267-190; Consular Section e-mail: CONSLAO@state.gov, Embassy web site: http://vientiane.usembassy.gov.

International Adoption

February 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Suspension of Foreign Adoptions: Prospective adopting American citizen parents should be aware that the Lao government has currently suspended all adoptions of Lao children by foreigners. Some exceptions have been granted by the Office of the Prime Minister, which is the only Lao government authority which can grant exceptions to the ban. Prospective adopting American citizen parents must obtain written authorization from the Office of the Prime Minister prior to having the United States Citizen and Immigration Service (USCIS) approve a petition for an orphan. For further information on international adoption, contact the Office of Children's Issues, U.S. Department of State at 1-888-407-4747 or visit its web site on the Internet at http://travel.state.gov/family. You may also direct inquiries to: Office of Children's Issues, U.S. Department of State, Washington, DC 20520-4811; Phone: (202) 736-9090; Fax: (202) 312-9743.

LAOS

Compiled from the October 2004 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Lao People's Democratic Republic

PROFILE

Geography

Area: 236,800 sq. km. (91,430 sq. mi.); area comparable to region.

Cities: Capital—Vientiane (2003 pop. est. 633,000). Other principal towns—Savannakhet, Luang Pra-bang, Pakse, Thakhek.

Terrain: rugged mountains, plateaus, alluvial plains.

Climate: tropical monsoon; rainy season (May to November); dry season (November to April).

People

Nationality: Noun and adjective—Lao (sing. and pl.).

Population: (July 2004 est.) 6,068,117 million.

Annual growth rate: (2004 est.) 2.44%.

Ethnic groups: Lao Loum (lowland) 68%; Lao Theung (upland) 22%; Lao Soung (highland) 9%, including the Hmong and the Yao; and ethnic Vietnamese and Chinese: 1%.

Religions: Principally Buddhism, with animism among highland groups.

Languages: Lao (official), French, various highland ethnic, English.

Education: Literacy—52.8%.

Health: (2002) Infant mortality rate—87.06/1,000. Life expectancy—56.75 years for women, 52.71 years for men.

Work force: (2.8 million, 2002) Agriculture—85%; industry and services—15%.

Government

Type: Communist state.

Branches: Executive—president (head of state); Chairman, Council of Ministers (prime minister and head of government); 10-member Politburo; 52-member Central Committee. Legislative—109-seat National Assembly. Judicial—district, provincial, and a national Supreme Court.

Political parties: Lao People's Revolutionary Party (LPRP)—only legal party.

Administrative subdivisions: 16 provinces, one special region, and Vientiane prefecture.

Economy

GDP: (2002) $1.8 billion.

Per capita income: (2002) $320.

GDP growth rate: (2003) 5.7%.

Natural resources: Hydroelectric power, timber, and minerals.

Agriculture: (53% of GDP, 2001 est.) Primary products—glutinous rice, coffee, corn, sugarcane, vegetables, tobacco, ginger, water buffalo, pigs, cattle, poultry, sweet potatoes, cotton, tea, and peanuts.

Industry: (23% of GDP, 2001 est.) Primary types—garment manufacturing, electricity production, gypsum and tin mining, wood and wood processing, cement manufacturing, agricultural processing.

Industrial growth rate: (2001 est.) 9.7%.

Services: (2001 est.) 24% of GDP.

Trade: Exports (2003 est.)—$332 million: garments, electricity, wood and wood products, coffee, rattan, and tin. Major markets—Thailand, Vietnam, France, and Germany. Imports (2003 est.)—$492 million. Major imports—fuel, food, consumer, goods, machinery and equipment, vehicles and spare parts. Major suppliers—Thailand, Vietnam, China, Singapore.

PEOPLE

Laos' population was estimated at over 6 million in 2004, dispersed unevenly across the country. Most people live in valleys of the Mekong River and its tributaries. Vientiane prefecture, the capital and largest city, had about 633,000 residents in 2002. The country's population density was 25/sq. km.

About half the country's people are ethnic Lao, the principal lowland inhabitants as well as the politically and culturally dominant group. The Lao are descended from the Tai people who began migrating southward from China in the first millennium A.D. Mountain tribes of Miao-Yao, Austro-Asiatic, Tibeto-Burman—Hmong, Yao, Akha, and Lahu—and Tai ethno linguistic heritage are found in northern Laos. Collectively, they are known as Lao Sung or highland Lao. In the central and southern mountains, Mon-Khmer tribes, known as Lao Theung or midslope Lao, predominate. Some Vietnamese and Chinese minorities remain, particularly in the towns, but many left in two waves—after independence in the late 1940s and again after 1975.

The predominant religion is Theravada Buddhism. Animism is common among the mountain tribes. Buddhism and spirit worship coexist easily. There also are small numbers of Christians and Muslims.

The official and dominant language is Lao, a tonal language of the Tai linguistic group. Midslope and highland Lao speak an assortment of tribal languages. French, once common in government and commerce, has declined in usage, while knowledge of English—the language of the Association of Southeast Asian Nations (ASEAN)—has increased in recent years.

HISTORY

Laos traces its first recorded history and its origins as a unified state to the emergence of the Kingdom of Lan Xang (literally, "million elephants") in 1353. Under the rule of King Fa Ngum, the wealthy and mighty kingdom covered much of what today is Thailand and Laos. His successors, especially King Setthathirat in the 16th century, helped establish Buddhism as the predominant religion of the country.

By the 17th century, the kingdom of Lan Xang entered a period of decline marked by dynastic struggle and conflicts with its neighbors. In the late 18th century, the Siamese (Thai) established hegemony over much of what is now Laos. The region was divided into principalities centered on Luang Prabang in the north, Vientiane in the center, and Champassak in the south. Following their colonization of Vietnam, the French supplanted the Siamese and began to integrate all of Laos into the French empire. The Franco-Siamese treaty of 1907 defined the present Lao boundary with Thailand.

During World War II, the Japanese occupied French Indochina, including Laos. King Sisavang Vong of Luang Prabang was induced to declare independence from France in 1945, just prior to Japan's surrender. During this period, nationalist sentiment grew. In September 1945, Vientiane and Champassak united with Luang Prabang to form an independent government under the Free Laos (Lao Issara) banner. The movement, however, was short-lived. By early 1946, French troops reoccupied the country and conferred limited autonomy on Laos following elections for a constituent assembly.

During the first Indochina war between France and the communist movement in Vietnam, Prince Souphanouvong formed the Pathet Lao (Land of Laos) resistance organization committed to the communist struggle against colonialism. Laos was not granted full sovereignty until the French defeat by the Vietnamese and the subsequent Geneva peace conference in 1954. Elections were held in 1955, and the first coalition government, led by Prince Souvanna Phouma, was formed in 1957. The coalition government collapsed in 1958, amidst increased polarization of the political process. Rightist forces took over the government.

In 1960, Kong Le, a paratroop captain, seized Vientiane in a coup and demanded the formation of a neutralist government to end the fighting. The neutralist government, once again led by Souvanna Phouma, was not successful in holding power. Rightist forces under Gen. Phoumi Nosavan drove it from power later that same year. Subsequently, the neutralists allied themselves with the communist insurgents and began to receive support from the Soviet Union. Phoumi Nosavan's rightist regime received support from the U.S. A second Geneva conference, held in 1961-62, provided for the independence and neutrality of Laos. Soon after accord was reached, the signatories accused each other of violating the terms of the agreement, and with superpower support on both sides, the civil war soon resumed. Although it was to be neutral, a growing American and North Vietnamese military presence in the country increasingly drew Laos into the second Indochina war (1954-75). For nearly a decade, Laos was subjected to extremely heavy bombing as the U.S. sought to destroy the portion of the Ho Chi Minh Trail that passed through eastern Laos.

In 1972, the communist People's Party renamed itself the Lao People's Revolutionary Party (LPRP). It joined a new coalition government in Laos soon after the Vientiane cease-fire agreement in 1973. Nonetheless, the political struggle between communists, neutralists, and rightists continued. The fall of Saigon and Phnom Penh to communist forces in April 1975 hastened the decline of the coalition in Laos. Several months after these communist victories, the Pathet Lao entered Vientiane. On December 2, 1975, the king abdicated his throne, and the communist Lao People's Democratic Republic (LPDR) was established.

The new communist government imposed centralized economic decision-making and broad security measures, including control of the media and the arrest and incarceration of many members of the previous government and military in "re-education camps." These draconian policies and deteriorating economic conditions, along with government efforts to enforce political control, prompted an exodus of lowland Lao and ethnic Hmong from Laos. About 10% of the Lao population sought refugee status after 1975, many of whom resettled in third countries, including the United States. From 1975 to 1996, the U.S. resettled some 250,000 Lao refugees from Thailand, including 130,000 Hmong.

Over time, the Lao Government closed the re-education camps and released most political prisoners. By the end of 1999, more than 28,900 Hmong and lowland Lao had voluntarily repatriated to Laos—3,500 from China and the rest from Thailand. Through the Office of the United Nations High Commissioner for Refugees (UNHCR), the International Organization for Migration (IOM), and non-governmental organizations, the U.S. has supported a variety of reintegration assistance programs throughout Laos. UNHCR has monitored returnees for a number of years and has reported no evidence of systemic persecution or discrimination against returnees per se. UNHCR closed its Laos office at the end of 2001.

GOVERNMENT AND POLITICAL CONDITIONS

The only legal political party is the Lao People's Revolutionary Party (LPRP). The head of state is President Khamtay Siphandone. The head of government is Prime Minister Bounnhang Vorachit. Government policies are determined by the party through the all-powerful ten-member Politburo and the 52-member Central Committee. Important government decisions are vetted by the Council of Ministers.

Laos adopted its Constitution in 1991. The following year, elections were held for a new 85-seat National Assembly with members elected by secret ballot to 5-year terms. The National Assembly, expanded in 1997 elections to 99 members, approves all new laws, although the executive branch retains the authority to issue binding decrees. The most recent elections took place in February 2002, when the National Assembly was expanded to 109 members.

Laos has few laws and is governed largely through the issuance of decrees. Of note, in July 2002, the government promulgated Prime Ministerial Decree 92 governing religious practice. Since the end of the

Indochina conflict, a low-level insurgency against the regime has continued. The incidents have included a series of bombings in the capital during the summer of 2000 and renewed spikes of violence in 2003 against all forms of transportation and public markets. The United States does not endorse or support violent activities carried out against the Lao Government.

Principal Government Officials

Last Updated: 10/20/04

Laotion officials are addressed by the first element in their names.

President: KHAMTAI Siphadon , Gen.
Vice President: CHOUMMALI Saignason , Lt. Gen.
Prime Minister: BOUNGNANG Volachit
First Dep. Prime Min.: ASANG Laoli , Maj. Gen.
Dep. Prime Min.: THONGLOUN Sisolit
Dep. Prime Min.: SOMSAVAT Lengsavat
Min. of Agriculture & Forestry: SIAN Saphangthong
Min. of Commerce: SOULIVONG Daravong
Min. of Communications, Transport, Posts, & Construction: BOUATHONG Vonglokham ,
Min. of Education: PHIMMASON Leuangkhamma
Min. of Finance: CHANSY Phosikham
Min. of Foreign Affairs: SOMSAVAT Lengsavat
Min. of Industry & Handicrafts: OMNEUA Phommachanh
Min. of Information & Culture: PHANDOUANGCHIT Vongsa
Min. of Interior: SOUTCHAI Thammasith , Maj. Gen.
Min. of Justice: KHAMOUAN Boupha
Min. of Labor & Social Welfare: SOMPHAN Phengkhammi
Min. of National Defense: DOUANGCHAI Phichit, Maj. Gen.
Min. of Public Health: PONMEK Dalaloi, Dr.
Min. to the President's Office: SOUBANH Srithirath
Min., Attached to the Office of the Prime Min.: BOUNTIAM Phitsamai
Min., Attached to the Office of the Prime Min.: SOMPHONG Mongkhonvilai
Min., Attached to the Office of the Prime Min.: SAISENGLITENG Bliachu
Min., Attached to the Office of the Prime Min.: SOMPHAVAN Inthavong
Min., Attached to the Office of the Prime Min.: SOULI Nanthavong
Chmn. State Planning Committee: THONGLOUN Sisoulit
Governor, National Bank: PHOUMI Thipphavone
Ambassador to the US: PHANTHONG Phommahaxay
Permanent Representative to the UN, New York: ALOUNKEO Kittikhoun

Laos maintains an embassy in the United States at 2222 S Street NW, Washington, D.C. 20009 (tel: 202-332-6416).

ECONOMY

Laos is a poor, landlocked country with an inadequate infrastructure and a largely unskilled work force. The country's per capita income in 2002 was estimated to be $320. Agriculture, mostly subsistence rice farming, dominates the economy, employing an estimated 85% of the population and producing 53% of GDP. Domestic savings are low, forcing Laos to rely heavily on foreign assistance and concessional loans as investment sources for economic development. In FY 1999, for example, foreign grants and loans accounted for more than 20% of GDP and more than 75% of public investment. In 2001, the country's foreign debt was estimated at $2.5 billion.

Following its accession to power in 1975, the communist government imposed a harsh, Soviet-style command economy system, replacing the private sector with state enterprises and cooperatives; centralizing investment, production, trade, and pricing; and creating barriers to internal and foreign trade.

Within a few years, the Lao Government realized its economic policies were preventing, rather than stimulating, growth and development. No substantive reform was introduced, however, until 1986 when the government announced its "new economic mechanism" (NEM). Initially timid, the NEM was expanded to include a range of reforms designed to create conditions conducive to private sector activity. Prices set by market forces replaced government-determined prices. Farmers were permitted to own land and sell crops on the open market. State firms were granted increased decision-making authority and lost most of their subsidies and pricing advantages. The government set the exchange rate close to real market levels, lifted trade barriers, replaced import barriers with tariffs, and gave private sector firms direct access to imports and credit.

In 1989, the Lao Government reached agreement with the World Bank and the International Monetary Fund on additional reforms. The government agreed to expand fiscal and monetary reform, promote private enterprise and foreign investment, privatize or close state firms, and strengthen banking. In addition, it also agreed to maintain a market exchange rate, reduce tariffs, and eliminate unneeded trade regulations. A liberal foreign investment code was enacted and appears to be slowly making a positive impact in the market. The pace of reform slowed during the Asian Financial crisis in 1997-98, from which Laos has yet to fully recover. Currently, completion of the Nam Theun II hydroelectric power project is a key Lao objective to increase revenue through selling electric power to neighboring Thailand.

These reforms led to economic growth and increased availability of goods throughout most of the 1990s. However, the Asian financial crisis, coupled with the Lao Government's own mismanagement of the economy, resulted in spiraling inflation and a steep depreciation of the kip, which lost 87% of its value from June 1997 to June 1999. Tighter monetary policies brought about greater macroeconomic stability in FY 2000 when inflation dropped to less than 1% per month. The economy continues to be dominated by an unproductive agricultural sector operating largely outside the money economy and the public sector continues to play a dominant role. Tourism is a growing industry and important source of foreign exchange.

FOREIGN RELATIONS

The new government that assumed power in December 1975 aligned itself with the Soviet bloc and adopted a hostile posture toward the West. In ensuing decades, Laos maintained close ties with the former Soviet Union and its eastern bloc allies, and depended heavily on the Soviet Union for most of its foreign assistance. With the collapse of the Soviet Union, Laos has sought to improve relations with its regional neighbors.

Laos maintains a "special relationship" with Vietnam and formalized a 1977 treaty of friendship and cooperation that created tensions with China. Relations with China have also improved over the years. Although the two were allies during the Vietnam War, the China-Vietnam conflict in 1979 led to a sharp deterioration in Sino-Lao relations. These relations began to improve in the late 1980s. In 1989 Sino-Lao relations were normalized. Today China's investment in Laos is increasing at a rapid rate and Chinese immigration to Laos is growing. Thailand remains the largest-single foreign investor in Laos. In 2003, Laos and Thailand signed agreements to cooperate on cross-border, labor, and counternarcotics issues.

Laos' emergence from international isolation has been marked by improved and expanded relations with other nations such as Australia, France, Japan, Sweden, and India. Laos was admitted into the Association of Southeast Asian Nations (ASEAN) in July 1997 and applied to join the World Trade Organization (WTO) in 1998. Currently, Laos' foreign policy concentrates on its immediate neighbors. Laos maintains a low profile in the larger international arena.

Laos is a member of the following international organizations: Agency for Cultural and Technical Cooperation (ACCT), Association of Southeast Asian Nations (ASEAN), ASEAN Free Trade Area (AFTA), ASEAN Regional Forum, Asian Development Bank, Colombo Plan, Economic and Social Commission for Asia and Pacific (ESCAP), Food and Agriculture Organization (FAO), G-77, International Bank for Reconstruction and Development (World Bank), International Civil Aviation Organization (ICAO), International Development Association (IDA), International Fund for Agricultural Development (IFAD), International Finance Corporation (IFC), International Federation of Red Cross and Red Crescent Societies, International Labor Organization (ILO), International Monetary Fund (IMF), Interpol, International Olympic Commission (IOC), International Telecommunications Union (ITU), Mekong Group, Non-Aligned Movement (NAM), Permanent Court of Arbitration (PCA), UN, United Nations Convention on Trade and Development (UNCTAD), United Nations Educational, Social and Cultural Organization (UNESCO), United Nations Industrial Development Organization (UNIDO), Universal Postal Union (UPU), World Federation of Trade Unions, World Health Organization (WHO), World Intellectual Property Organization (WIPO), World Meteorological Organization (WMO), World Tourism Organization, and World Trade Organization (observer).

U.S.-LAO RELATIONS

The United States opened a legation in Laos in 1950. Although diplomatic relations were never severed, U.S.Lao relations deteriorated badly in the post-Indochina War period. The relationship remained cool until 1982 when efforts at improvement began. Full diplomatic relations were restored in 1992 with the assignment of a U.S. Ambassador in Laos. For the United States, progress in accounting for Americans missing in Laos from the Vietnam War has been a principal measure for improving relations. Counternarcotics activities are also an important part of the bilateral relationship as the Lao Government has stepped up its efforts to combat cultivation; production; and transshipment of opium, heroin, and marijuana.

Since the late 1980s, joint U.S. and Lao teams have conducted a series of excavations and investigations of sites related to cases of Americans missing in Laos. In counternarcotics activities, the U.S. and Laos are involved in a multimillion-dollar crop substitution/integrated rural development program. Laos also has formed its own national committee on narcotics, developed a long-range strategy for counternarcotics activities, participated in U.S.-sponsored narcotics training programs, and worked to improve law enforcement measures to combat the narcotics problem.

The U.S. Government provides foreign assistance to Laos covers a number of areas. The aid includes support for Laos' efforts to suppress opium production, training and equipment for a program to clear and dispose of unexploded ordnance, and public education about the dangers of unexploded ordnance. Economic relations remain very limited. In September 2003, Laos and the United States signed a Bilateral Trade Agreement. For the agreement to come into force, Congress must approve normal trade relations.

Principal U.S. Embassy Officials

VIENTIANE (E) Address: Rue Bartholonie, B.P. 114; APO/FPO: Unit 8165, Box V, APO AP 96546; Phone: (856) (21) 21-2581; Fax: (856) (21) 21-2584; INMARSAT Tel: 683-132825/826/827; Workweek: Monday-Friday, 8:00am-5:00pm; Website: usembassy.state.gov/laos

TRAVEL

Consular Information Sheet

July 22, 2004

Country Description: Laos is a poor, developing country, with a socialist authoritarian government. Political power is centralized in the Lao People's Revolutionary Party. Services and facilities for tourists are adequate in the capital, Vientiane, and the UNESCO World Heritage town of Luang Prabang, but are extremely limited in other parts of the country.

Entry/Exit Requirements: A passport and visa are required. Visas are issued upon arrival in Laos to foreign tourists and business persons with two passport size photographs and $30 at Wattay Airport, Vientiane; Friendship Bridge, Vientiane, and Luang Prabang Airport as well as the following international entry points: Boten-Bohan, Hoeyxay, Khammouane-Nakhonphanom, Sayannahket-Mukdahan, Vangtao-Chong Mek, Pakse Airport, Daensayanh-Laobao, Namphao-Kaopae, and Namkan. Foreign tourists are generally admitted to Laos for 15 days with a visa issued upon arrival or for 30 days with a visa issued at a Lao Embassy. The Department of Immigration in Vientiane will extend 15-day tourist visas for up to 15 days and one-month visas for up to one month for a fee of $2 per day of extension. An additional 15-day extension can sometimes be obtained through a tour agency. Foreigners who overstay their visas in Laos risk arrest and upon departure will be fined $10 for each day of overstay.

Foreign tourists planning to enter Laos at any international checkpoint where Visas on Arrival are not available must obtain a visa in advance. In the United States, visas and further information about Lao entry requirements can be obtained directly from the Embassy of the Lao People's Democratic Republic, 2222 S St. N.W., Washington DC 20008, tel: 202-332-6416, fax: 202-332-4923, Internet: http://www.laoembassy.com.

U.S. citizens should not attempt to enter Laos without valid travel documents or outside of official ports of entry. Unscrupulous travel agents have sold U.S.-citizen travelers false Lao visas which have resulted in those travelers being denied entry into Laos. Persons attempting to enter Laos outside of official ports of entry risk arrest or more serious consequences.

Immigration offices at some of the less-used border crossing points are not well marked. Travelers should make sure that they complete immigration and customs formalities when they enter Laos. Travelers who enter Laos without completing these formalities may be subject to fine, detention, imprisonment, and/or deportation.

In an effort to prevent international child abduction, many governments have initiated procedures at entry/exit points. These often include requiring documentary evidence of relationship and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure.

At Wattay Airport (Vientiane), there is an international airport departure tax of 10 USD and at the Friendship Bridge (Vientiane-Nong Khai, Thailand border crossing), there is a 5,000 Kip (or 20 Thai Baht) exit tax.

Dual Nationality: Dual nationality is prohibited under the Law on Lao Nationality. The Lao government holds that persons lose their Lao citizenship if they take a foreign citizenship, and in some cases, if they reside in a foreign country for an extended period of time. The Law on Lao Nationality holds that if one or both parents of a child are Lao nationals who have not permanently settled in another country, then the child is a Lao citizen, even if the child is born outside Laos.

When the child is born in Laos and one parent is a U.S. citizen, the Lao government generally will not recognize the child as a U.S. citizen, and generally will not permit the child to depart Laos on a U.S. passport. Provided the child meets all other criteria for obtaining U.S. citizenship, however, the U.S. Embassy in Vientiane may still issue a U.S. passport to the child.

In addition to being subject to all Lao laws affecting U.S. citizens, individuals who also possess Lao nationality may also be subject to other laws that impose special obligations on citizens of that country.

Specific questions on dual nationality may be directed to Overseas Citizens Services, Department of State, 2100 Pennsylvania Ave., SA-29, 4th Floor, Washington D.C. 20520 or to the U.S. Embassy in Vientiane. For additional information, please see the Bureau of Consular Affairs' web site, http://travel.state.gov, for the Dual Nationality flyer.

Safety and Security: Since 2000 there have been periodic attacks on markets, two bus stations, all forms of ground transportation, border checkpoints and other public places. Between February 2003 and June 2004 there were bombings in Vientiane, Savannakhet and other cities and provinces throughout Laos (in Xieng Khouang, Sayabury, Houaphan, Saysomboun provinces). Armed attacks on buses and other vehicles on Route 13 (Vang Vieng to Luang Prabang) and Route 7 (junction Route 13 to Phonsavan) between February and April 2004 killed at least 12 persons.

In light of these incidents, the Department of State recommends that U.S. citizens traveling or residing in Laos exercise extreme caution in public places and be alert to their surroundings, since the locations of future incidents is unpredictable. In particular, U.S. citizens should avoid traveling by road between Vang Vieng and Luang Phrabang, on Route 7 from the Route 13 junction to Phonsavan town, and in surrounding areas.

After some attacks, the Lao government has been known to shut down telecommunications and stop all transport on main roads for up to several days. Travelers should comply with requests to stop at checkpoints and roadblocks.

U.S. citizens, especially those considering travel outside urban centers, are advised to contact relevant Lao government offices, such as Lao Immigration Police Headquarters in Vientiane, local police and customs offices, or the U.S. Embassy for the most current security information. To avoid trouble with the authorities, U.S. citizens traveling outside of normal tourist areas or contemplating any unusual activity (including, but not limited to, engaging in business, extensive photography, or scientific research of any kind) should consider seeking advance permission from the Village Chief, District Head, Provincial Governor, or National Tourism Authority, as appropriate.

More than 500,000 tons of unexploded ordnance left over from the Vietnam War causes about 120 casualties per year in Laos. Savannakhet, Xieng Khouang, Saravane, Khammouane, Sekong, Champassak, Houaphan, Attapeu, and Luang Pra-bang Provinces and Saysomboun Special Zone are severely contaminated by unexploded bombs. In addition, there are numerous mine fields left over from the war, including mine fields along Route 7 (from Route 13 to the Vietnam border), Route 9 (Savannakhet to the Vietnam border), and Route 20 (Pakse to Saravane). While traveling in Laos, U.S. citizens should never pick up unknown metal objects and should avoid traveling off of well-used roads, tracks and paths.

U.S. citizens considering travel by air, road or river within Laos are advised to carefully evaluate the relative risks of the three modes of transport for their particular journey. (See sections on Aviation Safety Oversight, Traffic Safety, and River Travel below.) Up to date information on security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the United States and Canada, a regular toll line at 1-317-472-2328. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays).

Travel of Foreigners Within Laos: According to the Lao Tourist Police, all foreign tourists are required to use the services of a licensed Lao tour company—unassisted tourism is not permitted. However, this regulation does not appear to be strictly enforced. The Lao tourist police have informed foreign tourists that any group of more than 5 foreign tourists must be accompanied by a licensed Lao tour guide. Violation of this regulation can result in detention, deportation, and fines of $200 to $2000.

Ministry of Trade and Tourism regulations prohibit any person who is not a licensed Lao tour guide from performing the functions of a tour guide—including explaining Lao culture and customs to foreign tourists. Again, this regulation also does not appear to be strictly enforced.

Lao citizens who wish to have a foreign citizen—including a family member—stay in their home must obtain prior approval from the village chief. The foreigner may be held responsible if the Lao host has not secured prior permission for the visit. American citizens are strongly advised to ensure that such permission has been sought and granted before accepting offers to stay in Lao homes.

Security personnel may at times place foreign visitors under surveillance. Hotel rooms, telephones and fax machines may be monitored, and personal possessions in hotel rooms may be searched. Taking photo-graphs of anything that could be perceived as being of military or security interest may result in problems with authorities.

Crime: While Laos generally has a low rate of violent crime, it is not immune to crime. While in Laos, Americans should remain aware of their surroundings and exercise appropriate security precautions. There has been an increase in recent years in thefts and assaults in Vientiane, including bag-snatching and sexual assault. Residential burglary is commonplace. Expatriates attempting to report burglaries in progress to the police often find that police telephones are not answered, or they are informed that the police are not authorized to respond to criminal activity at night or that the police have no transportation. U.S. citizens who move to Vientiane are encouraged to contact the U.S. Embassy for security advice.

U.S. citizens traveling to Vang Vieng should be aware that there have been robberies and assaults of tourists walking alone to the caves on the far side of the Nam Song River. Several people have drowned during the rainy season while inner-tubing or swimming in the Nam Song River. Camping at night anywhere except authorized campgrounds in national parks is considered dangerous.

The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, to contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of crimes is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

U.S. citizens may refer to the Department of State's pamphlet, A Safe Trip Abroad, for ways to promote a trouble-free journey. The pamphlet is available by mail from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, via the Internet at http://www.gpoaccess.gov, or via the Bureau of Consular Affairs home page at http://travel.state.gov.

Medical Facilities: Medical facilities and services in Laos are limited and do not meet Western standards. U.S. citizens often seek medical care in Thailand. The Friendship Bridge linking Vientiane, Laos, to Nong Khai, Thailand, is open from 6:00 a.m. to 10:00 p.m. Officials generally will allow travelers to cross after hours in cases of medical emergency. AEK International Hospital (tel: 66-42-342-555) and North Eastern Wattana General Hospital, both in Udorn, Thailand tel: 66-1-833-4262) have English-speaking staff accustomed to dealing with foreign patients. Nong Khai Wattana Hospital in Nong Khai, Thailand (tel: 66-1-833-4262) can handle most simple medical procedures. Ambulances for both AEK International Hospital and Nong Khai Wattana Hospital have permission to cross the Friendship Bridge to collect patients from Vientiane. In Vientiane, the Setthatirat Hospital ambulance (tel: 021-413-720) can take patients to Thailand. The Department of State assumes no responsibility for the professional ability or reputation of these hospitals.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation. U.S. medical insurance plans seldom cover health costs incurred outside the United States unless supplemental coverage is purchased. Further, U.S. Medicare and Medicaid programs do not provide payment for medical services outside the United States. However, many travel agents and private companies offer insurance plans that will cover health care expenses incurred overseas, including emergency services such as medical evacuations.

When making a decision regarding health insurance, Americans should consider that many foreign doctors and hospitals require payment in cash prior to providing service and that a medical evacuation to the U.S. may cost well in excess of $50,000. Uninsured travelers who require medical care overseas often face extreme difficulties. When consulting with your insurer prior to your trip, ascertain whether payment will be made to the overseas healthcare provider or if you will be reimbursed later for expenses you incur. Some insurance policies also include coverage for psychiatric treatment and for disposition of remains in the event of death.

Other Health Information: Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); fax 1-888-CDC-FAXX (1-888-232-3299), or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Laos is provided for general reference only, and may not be totally accurate in a particular location or circumstance:

Safety of Public Transportation: Poor
Urban Road Conditions/Maintenance: Poor
Rural Road Conditions/Maintenance: Poor
Availability of Roadside Assistance: Poor

The number of road accidents and fatalities in Laos has risen sharply in the last decade as the number of motor vehicles has increased. The rate of traffic fatalities in Laos is 19 per 10,000 vehicles, which is considerably higher than in the rest of Southeast Asia and much higher than the rate in the United States. U.S. citizens involved in traffic accidents have been barred from leaving Laos before paying compensation for property damage or injuries, regardless of who was at fault.

Traffic in Laos is chaotic and road conditions are very rough. Few roads have lane markings. Where lane markings, road signs, and stoplights do exist, they are widely ignored. Many drivers are unlicensed and uninsured. Theoretically, traffic moves on the right, but vehicles use all parts of the road. Cyclists pay little or no heed to cars. Motorcycles carry as many as five people, greatly impeding the drivers' ability to react to traffic. The evening hours are particularly dangerous. Road construction sites are poorly marked, have no advance warning, and can be difficult to see at night. Roads are poorly lit, many vehicles have no operating lights, few bicycles have reflectors, and trucks without reflectors commonly park on unlit roads.

Public transportation is unreliable and is limited after sunset. The most common form of public transport is three-wheeled, open-sided taxis called "tuk-tuks." Automobile taxis are available at the airport, the Friendship Bridge, and major hotels. Tuk-tuks and taxis are frequently in poor states of repair, and drivers generally speak little or no English. Inter-city transport is provided by buses, pickups, and trucks, which are also often in poor repair.

Lao road traffic regulations require any driver coming upon a road accident to assist in transporting injured persons to a hospital. Emergency telephone numbers are Fire: 190, Ambulance: 195 or 021-413-720, Traffic Police: 191, Tourist Police: 021-251-128 (only for incidents involving tourists).

For additional general information about road safety, including links to foreign government sites, see the Department of State, Bureau of Consular Affairs home page at http://travel.state.gov/travel/abroad_roadsafety.html.

Aviation Safety Oversight: As there is no direct commercial air service by local carriers at present, or economic authority to operate such service, between the U.S. and Laos, the U.S. Federal Aviation Administration (FAA) has not assessed Laos Civil Aviation Authority for compliance with international aviation safety standards. For further information, travelers may contact the Department of Transportation within the U.S. at 1-800-322-7873, or visit the FAA's Internet website at http://www.faa.gov/avr/iasa/index.cfm.

Customs Regulations: Lao customs authorities may enforce strict regulations concerning temporary importation into or export from Laos of items such as firearms, religious materials, antiquities, foreign currency, cameras and other items. It is advisable to contact the Embassy of the Lao People's Democratic Republic in Washington for specific information regarding customs requirements. (Please also see section on "Religious Workers" below.) In many countries around the world, counterfeit and pirated goods are widely available. Transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines. A current list of those countries with serious problems in this regard can be found at http://www.ustr.gov/reports/2003/special301.htm.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Lao laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Laos are strict and convicted offenders can expect jail sentences and heavy fines.

Under the PROTECT Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to engage in illicit sexual conduct in a foreign country with a person under the age of 18, whether or not the U.S. citizen or lawful permanent resident alien intended to engage in such illicit sexual conduct prior to going abroad. For purposes of the PROTECT Act, illicit sexual conduct includes any commercial sex act in a foreign country with a person under the age of 18. The law defines a commercial sex act as any sex act, on account of which anything of value is given to or received by a person under the age of 18.

Under the Protection of Children from Sexual Predators Act of 1998, it is a crime to use the mail or any facility of interstate or foreign commerce, including the Internet, to transmit information about a minor under the age of 16 for criminal sexual purposes that include, among other things, the production of child pornography. This same law makes it a crime to use any facility of interstate or foreign commerce, including the Internet, to transport obscene materials to minors under the age of 16.

Consular Access: U.S. citizens are encouraged to carry a copy of their U.S. passports with them at all times, so that, if questioned by local officials, proof of identity and U.S. citizenship are readily available. In accordance with the Vienna Convention on Consular Relations (VCCR), if an arrested person requests it, foreign authorities shall, without delay, inform the U.S. Embassy. The U.S. citizen has the right to be visited by a U.S. Consular Officer. However, Lao authorities do not always notify the U.S. Embassy or grant U.S. Consular Officers access to incarcerated U.S. citizens in a timely manner. Further, should a U.S. citizen who is a dual national or a former Lao citizen enter Laos on a document other than a valid U.S. passport, Lao officials might extremely limit the ability of the U.S. Embassy to provide consular services.

Relationships With Lao Citizens: The Lao Government prohibits sexual contact between foreign citizens and Lao nationals except when the two parties have been married in accordance with Lao Family Law. Any foreigner who enters into a sexual relationship with a Lao national may be interrogated, detained, arrested, or jailed. Lao police have confiscated passports and imposed fines of up to $5000 on foreigners who enter into disapproved sexual relationships. The Lao party to the relationship may also be jailed without trial. Foreigners are not permitted to invite Lao nationals of the opposite sex to their hotel rooms; police may raid hotel rooms without notice or consent.

Foreign citizens intending to marry Lao nationals are required by Lao law to obtain prior permission from the Lao government. The formal application process can take as long as a year. American citizens may obtain information about these requirements from the U.S. Embassy in Vientiane. The Lao Government will not issue a marriage certificate unless the correct procedures are followed. Any attempt to circumvent Lao regulations may result in arrest, imprisonment, a fine of $500-$5000, and deportation. Foreigners who cohabit with or enter into a close relationship with Lao nationals may be accused by Lao authorities of entering an illegal marriage and be subject to the same penalties.

Foreign citizens who wish to become engaged to a Lao national are required to obtain prior permission from the chief of the village where the Lao national resides. Failure to obtain prior permission can result in a fine of $500-$5000. Lao police frequently impose large fines on foreign citizens a few days after they hold an engagement ceremony with a Lao citizen based on the suspicion that the couple probably subsequently had sexual relations out of wedlock.

Religious Workers: Religious proselytizing or distributing religious material is strictly prohibited. Foreigners caught distributing religious material may be arrested or deported. The Government of Laos restricts the importation of religious texts and artifacts. While Lao law allows freedom of religion, the government registers and controls all associations, including religious groups. Meetings, even in private homes, must be registered and those held outside established locations may be broken up and the participants arrested.

River Travel: River travel is common in Laos, but safety conditions do not conform to U.S. standards. In particular, travel by speedboat (local term "fast boat") is dangerous and should be avoided, particularly during the dry season. Travel on or across the Mekong River along the Thai border should be avoided at night. Lao militia forces have shot at boats on the Mekong after dark.

Air Travel: There are concerns about the safety standards and maintenance regime of Lao Aviation. The U.S. Department of State evaluates official domestic travel by its personnel on a case-by-case basis to limit the risks of travel. In the last decade four aircraft have crashed in remote mountainous areas of the country, usually due to severe weather conditions and pilot error. The U.S. Embassy advises that U.S. citizens not fly in the mountainous parts of Laos during bad weather and that U.S. citizens fly only on Lao Airlines aircraft, which are certified for and in regular use on major international air routes such as the ATR aircraft.

Photography And Other Restrictions: Taking photographs of anything that could be perceived as being of military or security interest— including bridges, airfields, military installations, government buildings, or government vehicles—may result in problems with authorities, including detention or arrest and confiscation of the camera. Tourists should be cautious when traveling near military bases and strictly observe signs delineating the military base areas. Military personnel have detained and questioned foreigners who innocently passed by unmarked military facilities.

Financial Transactions: There are no network-connected automatic teller machines in Laos. Credit cards are accepted only at major hotels and tourist-oriented businesses. Credit card cash advances and Western Union money transfers are available at some banks in Vientiane. It is illegal to use U.S. dollars and Thai Baht for larger transactions. However, the Lao Government requires payment in U.S. dollars for some taxes and fees, including visa fees and the airport departure tax.

Children's Issues: For information on international adoption of children and international parental child abduction, please refer to our Internet site at http://travel.state.gov/family/index.html or telephone Overseas Citizens Services at 1-888-407-4747. This number is available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays). Callers who are unable to use toll-free numbers, such as those calling from overseas, may obtain information and assistance during these hours by calling 7-317-472-2328.

Registration/Embassy and Consulate Locations: Americans living in or visiting Laos are encouraged to register at the Consular Section of the U.S. Embassy in Vientiane and obtain updated information on travel and security within Laos. The U.S. Embassy is located at Thanon Bartholonie (near Tat Dam), in Vientiane; from the U.S., mail may be addressed to U.S. Embassy Vientiane, Box V, APO AP 96546; Telephone (856-21) 212-581, 212-582, 212-585; Duty officer emergency cellular telephone (856-20) 5502-016; Consular Section fax number (856-21) 251-624; Embassy-wide fax number (856-21) 212-584; Internet: http://usembassy.state.gov/laos, E-mail: consularvienti@state.gov.

Public Announcement

December 6, 2004

This Public Announcement is being issued to advise U.S. citizens of continuing security concerns in Laos. It supersedes the October 21, 2004, public announcement for Laos and will expire on July 30, 2005.

Since 2000, there have been periodic attacks on markets, bus stations, all forms of ground transportation, border checkpoints and other public places. Between February 2003 and November 2004, small-scale bombings occurred throughout Laos. Between February 2003 and April 2004 armed attacks on buses and other vehicles on Route 13 (Vang Vieng to Luang Prabang) and Route 7 (junction Route 13 to Phonsavan) killed at least 12 persons. In addition, several incidents of small-scale clashes between suspected anti-government insurgents and Lao security forces occurred in the Route 13 corridor area in late 2003 and early 2004.

In light of these incidents and threat information, the Department of State recommends that U.S. citizens traveling or residing in Laos exercise extreme caution in public places and be alert to their surroundings, since the locations of future incidents are unpredictable. In particular, the U.S. Embassy does not recommend traveling by road between Vang Vieng and Luang Phrabang and on Route 7 from the Route 13 junction to Phonsavan town and in surrounding areas.

After some attacks, the Lao Government has been known to shut down telecommunications and stop all transport on main roads for up to several days. Travelers should comply with requests to stop at checkpoints and roadblocks. U.S. citizens, especially those considering travel outside urban centers, are advised to contact relevant Lao Government offices, such as Lao Immigration Police Headquarters in Vientiane, local police and customs offices, or the U.S. Embassy for the most current security information. To avoid trouble with the authorities, U.S. citizens traveling outside of normal tourist areas or contemplating any unusual activity (including, but not limited to, engaging in business, extensive photography, or scientific research of any kind) should consider seeking advance permission from the Village Chief, District Head, Provincial Governor, or National Tourism Authority, as appropriate.

American citizens should also be aware that health care standards and public information about infectious diseases are lacking in Laos. In the event of an outbreak of a contagious disease, it is highly probable that delays would occur in making the public aware of the contagion.

U.S. citizens are strongly encouraged to consult the Department of State's Consular Information Sheet for Laos, and the Worldwide Caution Public Announcement, located at http://travel.state.gov. For further information, U.S. citizens may also contact the Department of State toll-free at 1-888-407-4747, or, if calling from overseas, 317-472-2328. The U.S. Embassy is located at Thanon Bartholonie (near Tat Dam), in Vientiane; from the U.S., mail may be addressed to U.S. Embassy Vientiane, Box V, APO AP 96546; Telephone (856-21) 212-581, 212-582, 212-585; duty officer emergency cellular telephone (856-20) 5502-016; consular section fax number (856-21) 251-624; embassy-wide fax number (856-21) 212-584; internet: http://usembassy.state.gov/laos, e-mail: consularvienti@state.gov.