Updated December 13, 2019
Laos
The Lao People’s Democratic Republic (LPDR or Laos)
Laos is heavily influenced by China and Vietnam. Some
has a population of 7.2 million in a land-locked area around
observers say the LPDR hopes to offset its reliance on its
the size of Utah. Laos has been ruled by a single party, the
neighbors, particularly China, by broadening its relations
Lao People’s Revolutionary Party, for more than four
with others, but it is wary about U.S. advocacy for
decades. The National Assembly, 73% of which consists of
democracy and human rights. U.S. engagement in Laos has
new members elected in 2016, reportedly has become more
focused on addressing Vietnam War legacy issues such as
outspoken in recent years, particularly on the issue of
unexploded ordnance (UXO) and helping the LPDR
official corruption.
develop the legal and regulatory frameworks it needs to
participate in global and regional trade agreements and
Laos is a member of the Association of Southeast Asian
integrate economically into ASEAN. U.S. and Lao officials
Nations (ASEAN), the primary multilateral grouping in
meet regularly through ASEAN diplomatic channels as well
Southeast Asia. The LPDR depends heavily on foreign
as the Lower Mekong Initiative (LMI), a sub-regional
investment, much of it from the People’s Republic of China
foreign assistance effort launched by the U.S. State
(PRC), for its infrastructure development. Since a 1986
Department in 2009 to promote cooperation and
economic opening, Laos has gradually implemented
development among member countries in the areas of
market-based economic reforms, and in 2013 became a
economic integration, education, energy, the environment,
member of the World Trade Organization (WTO). The
food security, health, water, and women’s empowerment.
economy has been growing steadily during the past decade,
LMI participants are Burma (Myanmar), Cambodia, Laos,
but Laos remains one of Asia’s poorest nations.
Thailand, and Vietnam.
Laos at a Glance
Congress did not extend non-discriminatory treatment to
the products of Laos until 2004. Bilateral trade has grown
Capitol: Vientiene
by nearly three times since 2013, reflecting a rise in Lao
President and General Secretary of the Lao People’s
exports of electrical machinery and precious metals to the
Revolutionary Party: Bounnhang Vorachith (2016)
United States. In 2018, total trade between the United
Prime Minister: Thongloun Sisoulith (2016)
States and Laos was valued at $158 million, including $142
Per Capita GDP (purchasing power parity): $7,400
million worth of Lao exports to the United States and U.S.
exports to Laos totaling $16 million.
GDP composition: Agriculture (21%); Industry (33%);
Services (46%).
The U.S. government has noted progress and cooperation in
Life Expectancy: 65 years
some other areas of the bilateral relationship. In 2009, the
Literacy: 85%
United States and Laos exchanged defense attachés, the
Religious Affiliations: Buddhist, 65%; Christian, 2%; Lao folk
first time in over 30 years, and the Obama Administration
religions, 31%; other or unspecified, 2%.
removed the prohibition on U.S. Export-Import Bank
financing for U.S. companies in Laos, citing the country’s
commitment to opening its markets. In 2010, the two
Source: Central Intelligence Agency, The World Factbook, 2019.
countries signed a comprehensive Open Skies agreement to
expand and liberalize aviation ties. The Defense POW/MIA
U.S.-Laos Relations
(Prisoner of War/Missing in Action) Accounting Agency
The United States did not sever diplomatic relations with
(DPAA) has conducted approximately 150 Joint Field
Laos, as it did with Cambodia and Vietnam, when
Activities (JFAs) with the LPDR since 1985. Joint efforts
communist parties in these three countries took power in
have recovered the remains of 281 American service
1975, although it did downgrade U.S. representation in
personnel while 291 remain missing.
Vientiane. Full diplomatic ties were not restored until 1992.
In 2016, when Laos served as ASEAN’s chair and host of
Development Issues
key regional meetings, President Barack Obama became the
According to the World Bank, the LPDR’s GDP growth
first U.S. president to visit Laos. The U.S. government and
averaged 7.7% over the past decade, and it grew by 6.5% in
Hmong-American groups remain concerned about human
2018. Neighboring countries—China, Thailand, and
rights issues and the Lao government’s treatment of its
Vietnam—are Laos’s largest export markets and dominate
ethnic Hmong minority. The LPDR government places
foreign investment. Major economic growth sectors include
substantial restrictions on civil and labor rights and political
hydropower, infrastructure, mining, and tourism. Despite
freedoms. There are a handful of known political prisoners,
economic growth, Laos performs poorly on many social
and a number of Hmong-Americans and Lao-Americans
development indicators. It has the highest level of child
have disappeared in Laos over the past 20 years, with little
mortality in Southeast Asia, and about one-fourth of Lao
apparent investigation by the Lao government.
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Laos
children under five years of age are considered
development. Critics argue that the China-led LMC has not
underweight.
paid sufficient attention to environmental concerns.
Laos has been a major participant in China’s Belt and Road
Unexploded Ordnance
Initiative (BRI), which focuses largely on Chinese-funded
The United States dropped over 2.5 million tons of
and built infrastructure development. A $6 billion Chinese-
munitions, mostly cluster bombs or submunitions, on Laos
backed rail project that would connect Vientiane with
during the Vietnam War, more than the amount of U.S.
Kunming in southwestern China has been delayed several
ordnance that fell on Germany and Japan combined during
times, but appears to be proceeding. Some observers argue
World War II in terms of tonnage. UXO has caused over
that the level of debt being undertaken by Laos could pose
50,000 casualties since 1964, including 29,554 Lao killed
macroeconomic risks to the country.
and 21,200 injured. Unexploded submunitions reportedly
have caused over 7,700 casualties since 1964, including 32
Foreign Assistance
in 2017, according to the Landmine and Cluster Munition
Laos received roughly $476 million in bilateral and
Monitor and other sources.
multilateral official development assistance (ODA) in 2017,
according to the Organisation for Economic Cooperation
In September 2016, the United States announced a
and Development (OECD). The top sources of ODA to
significant increase in its commitment toward de-mining
Laos are the World Bank, Japan, South Korea, the United
efforts in Laos—$90 million over a three-year period
States, and the European Union. China is a major provider
(2016–2018) for ongoing clearance and victim assistance
of infrastructure and other investment, development
activities and for a comprehensive national survey of UXO.
financing, and other assistance. Much of PRC economic
The U.S. government has provided nearly $200 million for
engagement does not qualify as ODA as defined by the
de-mining and other UXO-related assistance since 1993,
OECD, due to its large loan component, commercial
including $110 million in Department of State de-mining
elements, and economic benefits accruing to China.
assistance between 2016 and 2019.
Chinese companies reportedly have invested $7 billion
toward dams, mines, rubber plantations, and special
Human Rights Concerns
economic zones in the LPDR.
The U.S. government remains concerned about human
rights issues in Laos. According to the Department of
U.S. assistance efforts in Laos ($54.9 million in FY2018)
State’s Country Reports on Human Rights Practices for
include demining activities; capacity-building programs
2018, human rights issues in the LPDR include arbitrary
related to Laos’s WTO membership and participation in the
detention; political prisoners; censorship; substantial
ASEAN Free Trade Area and ASEAN Economic
interference with the rights of peaceful assembly and
Community; maternal and child health programs;
freedom of association; restrictions on political
counternarcotics activities; and education initiatives.
participation; corruption; and trafficking in persons.
International Military Education and Training (IMET)
programs focus on familiarizing Lao security sector
There are multiple known political prisoners. In December
personnel with U.S. military training and doctrine, building
2012, Lao activist Sombath Somphone, an internationally
military-to-military relationships, helping Laos integrate
celebrated civil society leader who had challenged the
into the ASEAN defense network, and improving the Lao
government’s seizure of farm land, disappeared at a police
military’s ability to respond to natural disasters and
checkpoint. He remains missing, and the Lao government
humanitarian crises.
denies knowledge of his whereabouts. The government
continues to treat some members of the Hmong minority,
The Mekong River and Hydropower
especially those with connections to militias that helped the
Laos has been active in promoting hydropower along the
U.S. military during the Vietnam War, with suspicion.
Mekong and other rivers. It has a reported 140 dam projects
During the past decade, several Lao and Hmong Americans
under consideration, with investors from China, South
have disappeared in Laos or have been abducted, allegedly
Korea, and other countries. Although these projects
by security forces. Lao government officials have denied
generate electricity and revenues for Laos, their potentially
the claims.
adverse environmental effects include displacement of
people; the loss of agricultural land; disruptions to water
In 2019, the Department of State upgraded Laos’s ranking
supplies, agriculture, and fish stocks; and the decimation of
in its annual Trafficking in Persons Report from the
some wildlife and aquatic species in Laos and neighboring
bottom-most Tier 3 to the Tier 2 Watch List. The 2019
countries. In 2018, the collapse of a hydroelectric dam
report stated that the LPDR “does not fully meet the
killed at least 40 people and displaced more than 6,000.
minimum standards for the elimination of trafficking but is
making significant efforts to do so.” The report stated that
The U.S. Lower Mekong Initiative provides support to the
Laos is a source and, to a lesser extent, a transit and
Mekong River Commission (MRC), an inter-governmental
destination country for women, children, and men subjected
agency among Cambodia, Laos, Thailand, and Vietnam, to
to sex trafficking and forced labor.
promote sustainable development of the Mekong River and
collaboration on the management of shared water resources.
Ben Dolven, Specialist in Asian Affairs
The Lancang-Mekong Cooperation forum (LMC), launched
Thomas Lum, Specialist in Asian Affairs
in 2006 and consisting of China, the four MRC countries,
and Burma, focuses on joint infrastructure and hydropower
IF10236
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Laos


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https://crsreports.congress.gov | IF10236 · VERSION 5 · UPDATED

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