Updated December 18, 2018
Laos
The Lao People’s Democratic Republic (LPDR or Laos)
its relations with others, but it is wary about U.S. advocacy
has a population of 7.2 million in a land-locked area around
for democracy and human rights. U.S. engagement in Laos
the size of Utah. Laos is one of Asia’s poorest nations, and
has focused on addressing Vietnam War legacy issues and
has been ruled by a single party, the Lao People’s
helping the LPDR develop the legal and regulatory
Revolutionary Party (LPRP), for more than four decades.
frameworks it needs to participate in global and regional
trade agreements and integrate economically into ASEAN.
Laos is a member of the Association of Southeast Asian
U.S. and Lao officials meet regularly through ASEAN
Nations (ASEAN), the primary multilateral grouping in the
diplomatic channels as well as the Lower Mekong Initiative
region. It depends heavily on foreign investment—much of
(LMI), a sub-regional foreign assistance effort launched by
it from China—for its infrastructure development. Since a
the State Department in 2009 to promote cooperation and
1986 economic opening, Laos has gradually implemented
capacity building in the areas of education, health, women’s
market-based economic reforms, and in 2013 became a
issues, regional infrastructure, and the environment. LMI
member of the World Trade Organization (WTO).
participants are Burma (Myanmar), Cambodia, Laos,
Thailand, and Vietnam.
Laos at a Glance
Congress did not extend non-discriminatory treatment to
Capitol: Vientiene
the products of Laos until 2004. Trade has grown since
President and General Secretary of the Lao People’s
then, though Laos remains only the 163rd largest U.S. trade
Revolutionary Party: Bounnhang Vorachith (2016)
partner. In 2017, total trade between Laos and the United
Prime Minister: Thongloun Sisoulith (2016)
States was valued at $122 million. Lao exports to the
Per Capita GDP (purchasing power parity): $7,400
United States totaled $96.4 million in 2017, more than
double the levels of two years earlier, dominated by apparel
GDP composition: Agriculture (21%); Industry (33%);
items and precious metals. U.S. exports to Laos were $25.7
Services (46%).
million in 2017.
Life Expectancy: 65 years
Literacy: 80%
The U.S. government has noted progress and cooperation in
Religious Affiliations: Buddhist, 65%; Christian, 2%; Laotian
some other areas of the bilateral relationship. In 2009, the
folk religions, 31%; other or unspecified, 2%.
United States and Laos exchanged defense attachés, the
first time in over 30 years, and the Obama Administration
removed the prohibition on U.S. Export-Import Bank
Source: Central Intelligence Agency, The World Factbook, 2018.
financing for U.S. companies in Laos, citing the country’s
commitment to opening its markets. In 2010, the two
U.S.-Laos Relations
countries signed a comprehensive Open Skies agreement to
The United States did not sever diplomatic relations with
expand and liberalize aviation ties.
Laos, as it did with Cambodia and Vietnam, when
communist parties in these countries took power in 1975,
The Defense POW/MIA (Prisoner of War/Missing in
although it did downgrade U.S. representation in Vientiane.
Action) Accounting Agency (DPAA) has conducted
Full diplomatic ties were not restored until 1992. The
approximately 150 Joint Field Activities (JFAs) with the
United States and the LPDR have experienced a slow
LPDR government since 1985. Joint efforts have recovered
warming of relations over the past decade. In 2016, when
the remains of 282 American service personnel while 291
Laos served as ASEAN’s chair and host of key regional
remain missing. Bilateral cooperation on counternarcotics
meetings, President Barack Obama became the first U.S.
activities contributed to a significant decline in opium
president to visit Laos. The U.S. government and Hmong-
production between 1998 and 2007. Since then, opium
American groups, however, remain concerned about human
production in Laos, which remains a major source country,
rights issues and the Lao government’s treatment of its
has stabilized or declined marginally.
Hmong minority. The LPDR government places substantial
restrictions on civil and labor rights and political freedoms.
Development Issues
There are a handful of known political prisoners, and in
The LPDR launched a market-oriented economic policy in
2012 prominent community organizer Sombath Somphone
1986. The country’s economic growth has been steady,
disappeared in Vientiane, the capital, and is widely believed
largely fueled by construction, food processing,
to have been abducted by government security forces.
hydropower, and tourism. Between 1988 and 2008, the
economy grew by over 6% per year on average, with the
The Lao government is heavily influenced by China and
exception of 1997-1998, when the economy contracted due
Vietnam. Some observers say the LPDR hopes to offset its
reliance on its neighbors, particularly China, by broadening
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Laos
to the Asian financial crisis. In recent years, the economy
development. Critics argue that the China-led LMC has not
has expanded by over 7% annually.
paid sufficient attention to environmental concerns.
Despite economic growth, Laos performs poorly on many
Unexploded Ordnance
social indicators. The country has the highest level of child
The United States dropped over 2.5 million tons of
mortality in Southeast Asia, and about one-fourth of Lao
munitions, mostly cluster bombs or submunitions, on Laos
children under five years of age are considered
during the Vietnam War, more than the amount that fell on
underweight. Development of the agriculture-based
Germany and Japan combined during World War II in
economy has been uneven and dependent upon natural
terms of tonnage. Over 50,000 Laotians have been killed or
resources, particularly hydropower, metals, and timber,
wounded by unexploded ordnance (UXO) since 1964,
with wealth accruing primarily in Vientiane. Neighboring
including 29,554 killed and 21,200 injured. Unexploded
countries—China, Thailand, and Vietnam—are Laos’s
submunitions reportedly caused 7,761 casualties between
largest export markets and dominate foreign investment.
1964 and 2017, according to the Landmine and Cluster
Munition Monitor and other sources.
Foreign Assistance
Laos receives roughly $375 million in bilateral and
In September 2016, the United States announced a
multilateral official development assistance (ODA)
significant increase in its commitment toward de-mining
annually on average (2012-2016), not including Chinese
efforts in Laos—$90 million over a three-year period
aid. The top sources of ODA to Laos are Japan, South
(2016–2018) for ongoing clearance and victim assistance
Korea, the United States, and the European Union. China is
activities and for a comprehensive national survey of UXO.
a major provider of infrastructure and other investment,
The U.S. government has provided $195 million for de-
development financing, and assistance. Chinese companies
mining and other UXO-related assistance since 1993.
reportedly have invested $7 billion toward dams, mines,
rubber plantations, and special economic zones.
The Hmong
Beginning in the early 1960s, the U.S. Central Intelligence
According to the Department of State, a primary goal of
Agency trained and armed an estimated 60,000 ethnic
U.S. assistance to Laos is “to demonstrate that the United
Hmong in Vietnam and Laos to fight the Vietcong. After
States is a trusted and reliable partner.” U.S. assistance
the Lao communists took power in 1975, Lao and
efforts in Laos ($54.9 million in FY2018) include demining
Vietnamese troops decimated most of the Hmong guerilla
activities; helping Laos comply with commitments related
army, although some Hmong fighters remained in remote
to its WTO membership and participation in the ASEAN
mountain areas for decades. Up to one-third of the Hmong
Free Trade Area and ASEAN Economic Community;
minority in Laos, which numbered 350,000 in 1974 by
maternal and child health; counternarcotics activities; and
some estimates, fled to Thailand after 1975. Many of them
education. International Military Education and Training
eventually settled in the United States.
(IMET) programs focus on familiarizing Lao security sector
personnel with U.S. military training and doctrine, building
Approximately 2,000 Hmong insurgents surrendered to Lao
military-to-military relationships, helping Laos integrate
authorities between 2005 and 2007 and settled in lowland
into the ASEAN defense network, and improving the Lao
areas. Some overseas Hmong groups claim that the Lao
military’s ability to respond to natural disasters and
military continues to wage a military campaign against the
humanitarian crises.
Hmong. The Lao government has provided limited access
for international observers to investigate conditions of
The Mekong River and Hydropower
resettlement villages of Hmong returnees and former rebels.
Of the Southeast Asian nations along the Mekong, Laos has
According to some experts, Hmong organized resistance
been particularly active in promoting hydropower, with a
has largely ceased, and clashes with the government are
reported 140 dam projects under consideration, with
sporadic at most. They say the Lao government does not
investors from China, South Korea, and others. Although
have a policy of systematically persecuting the Hmong,
these projects generate electricity and revenues for Laos
although there are cases of local government abuses,
and other lower Mekong countries, their potentially adverse
including violations of religious freedom.
environmental effects include displacement of people; the
loss of agricultural land; disruptions to water supplies,
Trafficking in Persons
agriculture, and fish stocks; and the decimation of some
In 2018, the Department of State placed Laos in its Tier 3
wildlife and aquatic species in Laos and neighboring
category, stating in its annual Trafficking in Persons Report
countries. In 2018, the collapse of a hydroelectric dam
that the LPDR “does not fully meet the minimum standards
killed at least 40 people and displaced more than 6,000.
for the elimination of trafficking and did not demonstrate
overall increasing efforts to do so.…” The report said Laos
The Lower Mekong Initiative provides support to the
is a source and, to a lesser extent, a transit and destination
Mekong River Commission (MRC), an inter-governmental
country for women, children, and men subjected to sex
agency (Cambodia, Laos, Thailand, and Vietnam) to
trafficking and forced labor. The Tier 3 designation subjects
promote sustainable development of the Mekong River and
Laos to restrictions on demining and IMET assistance.
collaboration on the management of shared water resources.
The Lancang-Mekong Cooperation forum (LMC), launched
Ben Dolven,
in 2006 and consisting of China, the four MRC countries
Thomas Lum,
and Burma, focuses on joint infrastructure and hydropower
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Laos

IF10236


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