Five decades of the Lao PDR: Leading investment advisor highlights milestones and future opportunities

As Laos enters its next 50 years as a nation, a senior business leader has highlighted the country’s development milestones and outlined key priorities to drive economic growth in the coming decades.
President of ACE Consultancy Co., Ltd, Mr Daovone Phachanthavong, told the Vientiane Times that Laos has made “remarkable progress” over the past five decades, particularly in strengthening national unity, improving connectivity, and opening new economic opportunities for its people.
Transforming connectivity and expanding markets
One of the most significant achievements, he noted, has been Laos’ transition from a landlocked nation to a land-linked hub. The opening of the Laos–China Railway in 2021 was a turning point—expanding trade routes, cutting logistics costs, and unlocking access to some of the world’s largest markets.
“Transforming landlocked into land-link is very important for the economy,” said Mr Daovone, who is also Vice President of the Lao National Chamber of Commerce and Industry (LNCCI).
“It boosts exports, including agricultural products to China, which is a very large market. This has generated direct income for our farmers.”
The improved connectivity has also spurred tourism. Laos recorded more than five million domestic and foreign visitors in 2024, generating over US$1 billion. In the first nine months of this year alone, foreign tourist arrivals topped 3.3 million—a year-on-year increase of 15 percent.
Agricultural exports likewise exceeded US$1 billion in 2024, providing significant income for rural households and SMEs.
“This is a very significant achievement,” he said.
Diaspora contributions and foreign policy strength
Mr Daovone also praised the contribution of Lao diaspora communities, whose investment and engagement in areas ranging from business to sports development have complemented national development efforts.
He highlighted that Laos’ foreign policy has fostered a favorable environment for cooperation and economic integration, crediting the Party and state policy for maintaining friendly relations with foreign countries, especially neighbours.
Private sector’s expanding role
Reflecting on his own business journey since 1989, he said the private sector has become an increasingly important driver of growth.
“The business environment has improved significantly,” he noted, adding that regulatory reforms and stronger cooperation between the state and private sector have contributed to rising investment and greater economic dynamism.
Challenges remain
Despite this progress, the country continues to face economic headwinds. High inflation has pushed many Lao workers to seek employment abroad, creating domestic labour shortages. However, Mr Daovone observed that remittances and new skills acquired overseas have helped support the economy.
Another challenge is the high cost of borrowing in Laos, which reduces the competitiveness of local firms.
“A higher interest rate means high production cost,” he said.
Government support and the need for further reforms
In light of these challenges, Mr Daovone said the government has attached great importance to supporting the business sector—particularly through cooperation with international organisations and financial institutions to strengthen the LNCCI and its members.
“The government understands the needs of businesses and attaches great importance to assisting them,” he said, emphasising improvements in the overall business environment.
However, he stressed the need for further structural reforms to streamline administrative procedures.
“By doing so, everything will be quickened. If many steps are involved, it is slow,” he said.
He also urged stronger support for small and medium enterprises, especially handicraft producers, who could supply souvenirs and products for the rapidly growing tourism industry. Commercial banks, he added, need to play a more active role in improving access to finance.
Potential future growth drivers
Looking ahead, Mr Daovone identified tourism, renewable energy, mining, and agriculture as key growth pillars for the next decades.
He suggested more investment in hydropower, solar, and wind energy, as well as the expansion of agriculture targeting high-demand markets. He noted rising interest in durian cultivation, as buyers seek new suppliers beyond Thailand, Vietnam, and Malaysia.
“They foresee potential in Laos,” he said.
For tourism, he emphasised the need for improved road access to major sites, which would support local incomes and boost the service sector.
As the Lao PDR marks its 50th anniversary on December 2, Mr Daovone takes this auspicious occasion, on behalf of his family, executive team and staff, to extend his best wishes to the nation and its people.
“We are grateful for the sacrifices of those who built this nation,” he said. “May Laos continue to grow with dignity, stability and harmony for many decades to come.”

By Souksakhone Vaenkeo
(Latest Update December 1, 2025)