Laos People Democratic Republic has struggled with many conflicts and instabilities. It has been ruled by the French for decades and endured battles between royalists and communists. At the present, Laos is still facing challenges such as poverty and providing sufficient resources for its people. However, the economy i
Laos People Democratic Republic has struggled with many conflicts and instabilities. It has been ruled by the French for decades and endured battles between royalists and communists. At the present, Laos is still facing challenges such as poverty and providing sufficient resources for its people. However, the economy is expected to rise as new infrastructures are being built, and investment from other countries has helped raised Laos' GDP.
CONNECTING ENERGY AND RAIL
The country is experiencing a construction boom with a number of infrastructure projects funded by China. Recently, a signed agreement between the Laotian government and China's Gezhouba gave the company permission to construct a 35 megawatt hydroelectric plant in the southern Salavan province. The Laotian government has made much strides toward its goal of increasing the availability of electricity to more of its residents by developing dams across the country. Other hydropower projects include the Don Sahong project near the Laos-Cambodia border and the Xayaburi hydroelectric power project, located east of the Xayaburi town in Northern Laos.
Surrounding countries have posed interest in purchasing electricity from Laos. Last year, Thailand has increased its purchase of electricity from 7,000 to 9,000 megawatts. While Malaysia has signed an agreement to purchase 100 megawatts from Laos using Thailand's power grid.
Construction on the railway connecting China and Laos has also begun. The $5.7 billion project will connect the capital of Vientiane to the Chinese border, stretching at a distance of around 414 kilometers. The project is expected to take around five years to complete, and the Laotian government hopes that once it is completed, it will strengthen the countries' economic ties with China and increase development in different sectors including agriculture, industrial and tourism.
Other foreign companies have also invested in Laos' special economic zones (SEZ). According to ADB, more than 10 SEZ zones are located in the country, with about 200 registered business units in different development stages. Companies such as Nikon, Essilor, Toyota, Mitsubishi and Polycom have all built their businesses in the SEZ.
MORE DEMAND FOR SECURITY
Similar to other countries in the region, Laos is also seeing a greater demand for security. Phusit Anuchitthananun, Senior Sales Manager at Robert Bosch, said, “We believe that the key four vertical markets: city surveillance, mining, commercial buildings and factories are the areas with the most growth in Laos as we see the demands and investments to these verticals.” He continues, “In each vertical, we see demands in video systems (CCTV), fire alarms and access control which customers needed to protect their assets. We have good local partners in Laos who represent us to sell our products, to provide professional support and also after-sales services.”
To ensure that end users will receive strong protection with their product, Bosch works closely with its partners to help deliver greater security. “We constantly provide commercial and technical training to our partners in order to step up their product knowledge and skillset to serve the end users,” said Anuchitthananun.