Doing Business In Laos

[fanciman]

A couple of years ago I met a Belgian who was running a guest house in thailand. He said he was leaving and going to Laos, as it was more business friendly and due to what he perceived as growing red-tape nationalism in thailand.

He said that tourists cross into Laos from Thailand, and spending time there.

What do you think? Is Laos a good place to do business? Which place has the most potential there?

[JimmyTheMook]

Laos is a hot area for more than just guest houses.

Labor is even cheaper than Thailand.

[johnnyk]

Red tape nightmares putting LoS in the shade is what I've heard.

Communist officials and burocrats clueless about biz so they keep passing the papers in circles and corruption levels greater than Thailand's.

[sutnyod]

Don't touch Laos unless you have money to spare (usually exactly the amount you invested).

You may do well in a so-so-business, but if you start to make big money they will sabotage you. Particularly the tourism sector complains: customs officials would show up with their extended families every day expecting free or else.... A scenario very often encountered by foreign investors is that their 'strawman' aka investment partner takes over. That's quite easy given the political climate: he just slips you that your were overheard badmouthing the government.

I know exactly one foreign investor whose business is going well. Despite this that person wants to leave rather sooner than later... Please ask around before you do anything there.

Ah, another thing: Laos has in the past successfully implemented laws in retrospective, a thing I never heard about before. So the contract you may have with the government or whomever can always be made invalid or turned around.