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Updated December 13, 2019


Laos


The Lao People's Democratic Republic (LPDR or Laos)
has a population of 7.2 million in a land-locked area around
the size of Utah. Laos has been ruled by a single party, the
Lao People's Revolutionary Party, for more than four
decades. The National Assembly, 73% of which consists of
new members elected in 2016, reportedly has become more
outspoken in recent years, particularly on the issue of
official corruption.

Laos is a member of the Association of Southeast Asian
Nations (ASEAN), the primary multilateral grouping in
Southeast Asia. The LPDR depends heavily on foreign
investment, much of it from the People's Republic of China
(PRC), for its infrastructure development. Since a 1986
economic opening, Laos has gradually implemented
market-based economic reforms, and in 2013 became a
member of the World Trade Organization (WTO). The
economy has been growing steadily during the past decade,
but Laos remains one of Asia's poorest nations.

                   Laos at a Glance
 Capitol: Vientiene
 President and General Secretary of the Lao People's
 Revolutionary Party: Bounnhang Vorachith (2016)
 Prime Minister: Thongloun Sisoulith (2016)
 Per Capita GDP (purchasing power parity): $7,400
 GDP composition: Agriculture (2 1%); Industry (33%);
 Services (46%).
 Life Expectancy: 65 years
 Literacy: 85%
 Religious Affiliations: Buddhist, 65%; Christian, 2%; Lao folk
 religions, 3 1%; other or unspecified, 2%.

 Source: Central Intelligence Agency, The World Factbook, 2019.

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 The United States did not sever diplomatic relations with
Laos, as it did with Cambodia and Vietnam, when
communist parties in these three countries took power in
1975, although it did downgrade U.S. representation in
Vientiane. Full diplomatic ties were not restored until 1992.
In 2016, when Laos served as ASEAN's chair and host of
key regional meetings, President Barack Obama became the
first U.S. president to visit Laos. The U.S. government and
Hmong-American groups remain concerned about human
rights issues and the Lao government's treatment of its
ethnic Hmong minority. The LPDR government places
substantial restrictions on civil and labor rights and political
freedoms. There are a handful of known political prisoners,
and a number of Hmong-Americans and Lao-Americans
have disappeared in Laos over the past 20 years, with little
apparent investigation by the Lao government.


Laos is heavily influenced by China and Vietnam. Some
observers say the LPDR hopes to offset its reliance on its
neighbors, particularly China, by broadening its relations
with others, but it is wary about U.S. advocacy for
democracy and human rights. U.S. engagement in Laos has
focused on addressing Vietnam War legacy issues such as
unexploded ordnance (UXO) and helping the LPDR
develop the legal and regulatory frameworks it needs to
participate in global and regional trade agreements and
integrate economically into ASEAN. U.S. and Lao officials
meet regularly through ASEAN diplomatic channels as well
as the Lower Mekong Initiative (LMI), a sub-regional
foreign assistance effort launched by the U.S. State
Department in 2009 to promote cooperation and
development among member countries in the areas of
economic integration, education, energy, the environment,
food security, health, water, and women's empowerment.
LMI participants are Burma (Myanmar), Cambodia, Laos,
Thailand, and Vietnam.

Congress did not extend non-discriminatory treatment to
the products of Laos until 2004. Bilateral trade has grown
by nearly three times since 2013, reflecting a rise in Lao
exports of electrical machinery and precious metals to the
United States. In 2018, total trade between the United
States and Laos was valued at $158 million, including $142
million worth of Lao exports to the United States and U.S.
exports to Laos totaling $16 million.

The U.S. government has noted progress and cooperation in
some other areas of the bilateral relationship. In 2009, the
United States and Laos exchanged defense attachs, the
first time in over 30 years, and the Obama Administration
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
countries signed a comprehensive Open Skies agreement to
expand and liberalize aviation ties. The Defense POW/MIA
(Prisoner of War/Missing in Action) Accounting Agency
(DPAA) has conducted approximately 150 Joint Field
Activities (JFAs) with the LPDR since 1985. Joint efforts
have recovered the remains of 281 American service
personnel while 291 remain missing.


According to the World Bank, the LPDR's GDP growth
averaged 7.7% over the past decade, and it grew by 6.5% in
2018. Neighboring countries China, Thailand, and
Vietnam are Laos's largest export markets and dominate
foreign investment. Major economic growth sectors include
hydropower, infrastructure, mining, and tourism. Despite
economic growth, Laos performs poorly on many social
development indicators. It has the highest level of child
mortality in Southeast Asia, and about one-fourth of Lao

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