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Updated October 17, 2022

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 (LPRP), for more than
four decades. 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). However, Laos remains one of Asia's
poorest nations.
Laos depends heavily on foreign investment-much of it
from China-for its infrastructure development. This
reliance, as well as rapidly expanding trade with China, has
made Laos one of the Southeast Asian nations with the
closest relations to Beijing. Many observers express
concern that Laos' borrowing to fund infrastructure
investment has raised its public debt to dangerous levels.
According to a World Bank report published in April 2022,
Laos' total public and publicly guaranteed debt reached
88% of GDP in 2021.
Laos is a member of the Association of Southeast Asian
Nations (ASEAN), and a partner in the U.S.-Mekong
Partnership (formerly called the Lower Mekong Initiative),
a sub-regional foreign assistance effort launched by the
U.S. State Department in 2009, under which the United
States provides assistance to nations that rely on the
Mekong River for economic development.

Source: CIA World Factbook.

U.S.Laos Relations
U.S. forces engaged covertly in a civil war in Laos while
the United States was involved in the Vietnam War. The
United States supported a royalist government in its fight
against communist insurgents backed by the North
Vietnamese, in part to prevent the transfer of North
Vietnamese weapons and supplies to South Vietnam. The
United States did not sever diplomatic relations with Laos,
as it did with Cambodia and Vietnam, when communist
parties in these countries took power in 1975, although it

did downgrade U.S. representation in Vientiane. Full
diplomatic ties were restored in 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.
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 U.S.-Mekong Partnership, which aims 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.
In 2004, Congress began extending nondiscriminatory
treatment to the products of Laos. Trade has grown since
then, though Laos is the 157th largest U.S. trade partner. In
2020, total goods trade between Laos and the United States
was valued at $129 million. Lao exports to the United
States totaled $105 million in 2020, dominated by apparel
items and precious metals. U.S. goods exports to Laos
amounted to $25 million in 2020.
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 attaches, 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 288 American service
personnel while 285 remain missing.
Development Issues
Laos's economic growth has been steady, largely fueled by
construction, food processing, hydropower, and tourism,
but the country performs poorly on many social indicators.
Laos has the highest level of child mortality in Southeast
Asia, and about one-fourth of Lao children under five years
of age are considered underweight. Development of Laos's

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