Embassy of the Lao PDR to the U .S.A

2222 S Street NW Washington, D.C. 20008

Tel: (202) 332 6416 Fax: (202) 332 4923

E-mail: laoemb@verizon.net

February 10, 2010

“Working together to promote mutual understanding and cooperation”.

Phiane PHILAKONE Ambassador of the Lao P.D.R to the U.S.A

“Sabaidee”… The Lao customary greeting word

Map of the Lao PDR

WEBSITES Ministry of foreign Affairs Ministry http://www.mofa.gov.la Industry and Commercial Ministry http://www.moc.gov.la Ministry of Information and Cultural http://www.mic.gov.la Foreign Investment Management Office http://www.invest.laopdr.org National Assembly http://www.na.gov.la National Tourism Authority of Lao PDR http://www.mekongcenter.com Lao National Chamber of Commerce & Industry http://www.Laocci.com Lao National University http://www.nuol.edu.la Science Technology & Environment Agency http://www.stea.gov.la Lao National Statistic Center http://www.nsc.gov.la Lao National Mekong Committee http://www.lnmc.gov.la/mekong Lao Customs Office http://www.laocustoms.laopdr.net Vientiane Times Newspaper http://www.vientianetimes.org.la Lao News Agency http://www.kpl.net.la Lao Hotel Group http://www.laohotelgroup.org Lao Airline http://www.laoairlines.com National Tourism Authority of Lao PDR http://www.tourismlaos.gov.la http://www.mekongcenter.com http:// www.visit-mekong.com/laos http://www.ecotourismlaos.com ADB http://www.adb.org/Lao PDR

Other Incentives - Investment term is up to 75 years - Freedom to expatriate their earning back home or to third countries - Right to employ foreign expatriates (not exceed 10% of the enterprise’s labor) - Personal income tax at a flat rate of 10% Population indicators Survey fiscal years Survey fiscal years 2006-2007 2007-2008 1. Total population : 5.8 million 5.9 million 2. Density (person per sq.km): 24.5 25 3. Annual growth rate : 2.4% 2.0 4. Fertility rate (birth per woman): 4.3 4.1 5. Life expectancy at birth: i. - Female : 64.5 65.0 ii- Male : 60.0 61.0 6. Access to safe water

( % of total population) : 70.8 72.0 7. Adult literacy rate : 87.6 76.0

( Age 15 and above) (% of total population)

8. Per capita GDP (US dollars) : 678 728

Patouxay (Vientiane City)

Lao PDR: a quick look at the country Location: landlocked country bordered by China, Vietnam, Cambodia, Thailand and Myanmar. Area: 236,800 square Kilometers. Climate : Tropical with rainy season from May to October. Population: 5.9 million. Density: 25 people per square kilometer. Religion: Buddhism (Theravada Buddhism). Language: Lao (English is widely understood in the cities) Capital: Vientiane Major cities: - Vientiane - Savannakhet - Pakse - Luang Prabang Main touristic sites:

- Luangphabang, the charm and the serenity of the world heritage “an alive museum of the past ”. - Plain of Jars (Xiengkhouang) the 3,000 years stone jars. - That Luang Stupa and Patouxay (triumphal arch) Vientiane City. - Ruins of Wat Phu Champassak temple built from 6th to 8th

centuries placed under the UNESCO’s list of the world heritage conservation and Khonephapheng Waterfall, the biggest waterfall of the Mekong river in Champassak province.

National currency: Kip Time : GMT+7 IDD: Country code: 856 Area code: 21 Vientiane 41 Savannakhet city 31 Pakse city 71 Luang Prabang city

Lao PDR : Location, Land and Climate

I. Location, Land and Climate

1. Location: the Lao PDR is a landlocked country located between 13˚ 54' to 22˚ 3' north latitude and 100˚ 05' to 107˚ 35' east longitude. Lying from north to south, the longest part of the country is about 1,800 Km, the widest part 500 Km and the nearest 140 Km. The Lao PDR has an eastern border with the Socialist Republic of Vietnam, a western border with the Kingdom of Thailand, a southern border with the Kingdom of Cambodia, a northern border with the People’s Republic of China and northwestern border with the Union of Myanmar. 2. Land: The Lao PDR has a total land area of 236,800 square kilometers of which 70% are covered with mountains and high plateaus. The Lao land is colored with diversified range of landscapes: mountains, high plateaus, jungles, rainforest, caves, cascading waterfalls, rapid rivers, plains and valleys. The northern area is dominated by high mountains measuring an average of 1,500 meters above the sea level. The highest peak is “Phou Bia”, 2,800 meters high in Xieng Khouang province. The plain region (Center and South part of the country) consists of large and small plain lands scattered along the Mekong river and its tributaries. The Mekong river flows windingly through the Lao territory from North to South for 1,898 Km. Khonephapheng and Liphi, the wonderful Mekong river waterfalls located in the charming Southern part of the Lao PDR are biggest waterfalls in the Southeast Asia. The Lao PDR has a fertile soil and abundant mineral deposits such as tin, gold, iron, silver, sulphur and

(3) Foreign direct investment (FDI) = Fiscal year 2006-2007 (million US dollars) - Value of approves projects = 1,136.9 - FDI inflow (through banking sector) = 766.0 (4.) Average inflation = 4.1% 5. Foreign investment policies

The new investment law of the Lao PDR was adopted in 2004. Here is a summary of this law. (DDFI Lao PDR newsletter march 2005) Law on the promotion of Foreign Investment in the Lao PDR (2004)

Form of FDI - 3 forms of FDI a). Business Cooperation by contract; b). A joint venture with one or more domestic Lao investors (Foreign equity should not be less than 30% of total investment capital); or c). A 100% foreign-owned enterprise - 0% of import duties on production vehicles, machinery, equipment and raw materials - No export duties on finished products; - Profit tax is classified into 3 groups: 20%, 15% and 10% and profit tax exemption is offered for a certain period depending on activities, investment areas and size of investment. 1. Zone one: (area with no economic information infrastructures) - 7 years profit tax exemption - There after a profit tax of 10% 2. Zone two (areas with certain level of economic infrastructures) - 5 years profit tax exemption - 3 years profit tax of 7.5% - There after a profit tax of 15% 3. Zone three (areas with good infrastructures) - 2 years profit tax exemption - 2 years profit tax of 10 %

- Thereafter a profit of 20%

b. from a command economy to a more market oriented economy with the introduction of a process of economic reform called the “New Economic Mechanism” or NEM in 1986. The goal of the NEM are:

i. To implement a progressive transition from subsistence based, rural and natural economy to a production and services economy.

ii. To reduce poverty and upgrade the standard of life of the population.

iii. To protect the environment by the cessation of shifting cultivation and the preservation of the forest and

iv. To adopt a series of strategies to attract foreign investment, promote exports and tourism and integrate the Lao economy to its ASEAN partners.

3. Industrialization: The country is beginning to move towards industrialization such as having hydropower for exports, gold mining industries, cement plants and small scale processing factories. 4. Basic Economic Indicators: Fiscal years Fiscal years 2006-2007 2007-2008(E st.) (1.) Annual growth rate: - Total GDP 8% 8% - Agriculture 2.8% 3.0% - Industry 15.7% 15.8% - Service 7.4% 7.0% - GDP per Capita 678 728 (2) Trade balance (million dollars) 61.0 - 163.0 - Exports: 977.0 634.0 - Import 916.0 796.9 - Main export products: - Electricity - Gold - Other mining products - Garments - Coffee (Gold from Xepon) - Timber and forest products - Agricultural products - Handicrafts

sapphires. The land is still covered with 47% (about 11.17 million hectares) of natural tropical forest and sanctuaries of tropical flora and fauna. The extremely rare animal called Saola Ox, a breed of deer antelope recently discovered in Vietnam inhabits the eastern border region of the Lao PDR. In the Lao southern border with Cambodia, the river dolphin (Irrawaddy dolphin) inhabits the Mekong River. The Mekong river and its tributaries in the Lao territory are big potential hydropower energy resources. This abundant water resource can supply fresh water to the Lao PDR with 66,000 cubic meters per capita per year. The main user of water is the agriculture sector (about 80%). Saola Ox (from www.visit-laos.com) 3. Climate: The Lao PDR has tropical climate. Its weather is influenced by tropical monsoons but protected by the mountain chains in he East (border with Vietnam), it is not exposed to typhoons originating from the Pacific Ocean and the South China Sea. The Lao PDR has two main seasons, the rainy season from May to October and the dry season from November to April. Also at the beginning of the dry season, the Lao DDR has a short cool season from November to January. The highland zone (Northern part of the country) is cooler than the plain zone(Central and Southern part). The average low temperature in the highland area during the cool season ranges from 10-14°C and the average low temperature in the plain area during this time is 18-20°C. The average high temperature during the hot season is 29-35°C. April- May are the hottest months of the year. During rainy season, the

weather is hot and humid but the temperature is mildened by the windy rains. The annual average rainfalls is about 2,000 - 2,500 millimeters. The National Flower

Box: 1 The “Dok Champa” (Plumeria) is the national flower of Lao PDR. The waxy flower with a sweet scent can be found in many colors: red, yellow, pink and multiple pastels. For the Lao people, Dok Champa represents sincerity and joy in life. The flower is often used as a decoration in ceremonies or made into a garland to welcoming guests. The Dok Champa blooms everyday and lasts a long time. The trees are planted throughout the country and in particular, can be seen near the monastic areas.

Lao PDR: Economy V. Economy.

1. Potentials for development. The Lao PDR has a lot potentials for economic development which include: - Land for agriculture and plantations; - Forest and water resources; - Abundance of mineral resources; - Tourist destinations. One third of the land is suitable for agriculture, livestocks and tree plantations for industrial outputs. Many projects have been adopted by the Lao government to promote investments in the agro-base products and wood-bases products. Two third of land are forested and mountainous. The Lao PDR has in its territory more than 13 tributaries that join de Mekong river. In the estimation of the country’s water resources, the water potentials of the Lao PDR have the capacity of hydroelectricity production of more than 17,000 megawatts with more than 30 dams construction projects around the country.

Energy is regarded by the Lao Government as major economic development objectives that will make the Lao PDR the center of electricity export in South East Asia in the 21st Century. The Lao PDR is a country rich in culture and beauty and tourism is one of the potentials for development of the country. In

recent years, tourism has grown rapidly and it is the sources of employment for many Lao People. 2. Economic development policies:

Since its foundation 30 years ago, the Lao PDR has undergone two major transformations in the economic environment:

a. from the post-liberation situation to a command economy,

The National Anthem The National Anthem of the Lao People's Democratic Republic is “ Xat Lao ”

Lao PDR: People and Culture

II. People and Culture The Lao PDR is a home of multi-ethnic people and multi-cultural society. It has long history of rich variety of cultures and customs. 1. People The Lao PDR is composed of 49 groups :

The 49 ethnic groups speak different dialects which consist of 4 main linguistic families: Lao - Tai family. Mone - Khmer family. Tibeto - Chinese family. Hmong - Loumien family.

2. Culture

The Lao multi- ethnic people have their own civilization since the beginning of their existence with regards to their mode of practice of the agriculture, their lifestyle, their art and their dialects. The Lao multi ethnic groups practice different customs which co-exist and complete with each other.

Religion: The original belief of the Lao multi-ethnic people was animism which was later influenced by Indian culture. The Brahmanism came next and followed by the Buddhism. Today about 65% of the Lao people are Hinayana Buddhists, though animism continues to co-exist with Buddhism.

Language: Lao language is the national language. Except for those influenced by Pali or Sanskrit ( Indian origin), the Lao national language is a monosyllable based dialect and the Lao letters are derived from Pali characters.

Festival in Lao PDR

January 1 New Year ( International New Year Day) January 20 Lao people’s Army Day February Wat Phu Festival (the Wat Phu ruin located in Champassak was built from 6th to 8th centuries) March 8 Women’s Day March 22 Lao People’s Revolutionary Party Day April 13-15 Lao's New Year "Pimai". The Lao people celebrate their “Pimai” or New Year on the 5th month of the Lao lunar calendar year (April 13-15) - During the three days of “Pimai” people throw buckets of water to each other in order to invite fertile rains, the source of abundance and happiness. The reasons for celebrating “Pimai ” on the 5th month instead of celebrating it during the first month are: (1)The first month (December) is the cool season, during this Boun Bang Fai (Rocket Festival) time the day is shorter than the night.

b. The Government: the Prime-Minister and his cabinet are in charge of the execution of the day to day Government duties. The government is composed of the Prime-Minister, the deputies Prime-Ministers and Ministers.

(3) The Judicial: The judicial of the Lao PDR is composed of the Lao People’s Supreme Court, Appeal Courts and the 1st instance courts (local courts).

Box: 4

Fundamental rights and liberties of the Lao people (constitution 1991) - Right to education - Right to religion belief - Right to entitlement to vote (from 18 years of age onward) - Right to stand for election (from 21 years of age onward) Both men and women are equal: - politically - economically - culturally - socially and have equal opportunities for employment: both men and women have the rights to choose one’s own religion, the right and freedom to express one’s opinion, the right of association and protest under the law. Foreign policies

The objective of the Lao foreign policies focus on peace, independence, friendship and cooperation. The Lao PDR became a full member of ASEAN in 1997. The Lao PDR regional development cooperation includes transport, power transmission, telecommunication, HIV/AIDS and other disease prevention and prevention of human and drug trafficking.

Lao PDR: Administration IV. Political Structure The National Flag The National Emblem (The National Flag of the Lao PDR is a dark blue background with red borders and a white moon). The political structure of the Lao PDR includes the Lao People’s Revolutionary Party, the state organizations and the Lao mass organizations. The Lao People’s Revolutionary Party is a real and strong Lao political authority of the country. Based on its constitution of 1991, the state organizations of the Lao PDR are composed of :

(1) The legislative: The legislative of the Lao PDR is a unicameral congress “ the

National Assembly ”. The members of the Lao National assembly are directly elected for five years term of office by the people.

The National Assembly elects or removes the President of the Republic and approves the nomination of the Prime Minister and his cabinet. (2) The Executive:

a. The President of the Republic: the President of the Republic elected for five years term of office is the head of the State. The President is assisted by a Vice- President.

Hoping for long life, the Lao people celebrate “Pimai” during the 5th month where the day is longer. (2) April or the 5th month of the Lao lunar calendar year marks the end of the dry season and the beginning of the rainy season in the Lao PDR. Celebrating “Pimai” at this time is also to welcome the new rainy season. May 1 International Labor Day May Visakha Puja Festival (Buddhist festival) May Boun Bang Fai (Rocket Festival): animist tradition with wild dances merry-making and firing of bamboo rockets and wishing for abundance of the forthcoming rainy season. July Khao Phansa festival (a Buddhist festival to mark the beginning of the three months rainy season retreat for the monks to stay in their monasteries). September/October Ock Phansa festival (a Buddhist festival , the end of the three months rainy season retreat for the monks). September/ October Boat Racing festival (animist tradition: thanks giving for the rivers spirits with a long-boat racing competition). November That Luang festival (That Luang Stupa, a Buddhist symbol located in Vientiane City). December 2 Lao National Day Between mid December - January Hmong New Year in Oudomxay, Xieng Khouang, Luang Prabang and Vientiane Province.

Some Lao Characteristic traditions: The “ Baci ” ceremony

Spiritually influenced from Brahmanism, the “ Baci ” is a very popular and famous tradition in the Lao PDR. It is organized for all special occasions ( New Year celebration, Welcome or Farewell party, Birthday party, Wedding ceremony etc…). The organizers of the “Baci” tie knotted cotton bracelet around

the wrists of the guests (or the persons concerned) and pray for good health, happiness, success and prosperity. The sticky rice: The Lao traditional food is eaten with sticky (glutinous) rice cook by steam of boiled water prepared in a special woven bamboo basket. The sticky rice is eaten with the Lao famous dish called Lap, a spiced and herbed salad of grilled rare meat or fish almost like the steak tartar of the western style cooking. The sticky rice is also prepared in bamboo grilled and it is enjoyable to eat it with grilled chicken. The “Khaen music” (Bamboo music instrument) The famous and popular Lao folk music is the “khaen music”. This Lao bamboo made music instrument comprises a double row of bamboo- like reeds, fitted in hardwood sound box and it is a wind music instrument.

followers to protect the Lao Independence.

5. A heavily U.S bombing campaign against the Lao people

The Lao territory was heavily bombed by the US air force during the Indochina War (Vietnam War) and received more than two million tons of bombs including the cluster bombs or bombies.

Today the International teams are still cleaning the terrain of unexploded ordinances (UXO) particularly in the region of the province of Houaphan and Xiengkhuang and the Lao people continue to suffer from the consequences of this bombing campaign. 6. The rebirth of a nation

The end of the Indochina War (Vietnam War) in 1975 has conducted to the founding of the Lao People’s Democratic Republic (Lao PDR). December 2nd 1975 marked the complete victory of the Lao people in their struggle against the external aggression and a rebirth of the Lao unified nation.

Today the Lao people are enjoying peace, stability and freedom. Wat Phou site (from www.unescobkk.com)

3. A unified kingdom of “Lane Xang” 1353-1705

Fa Ngum (1316-1357) was the first King, who fought and succeeded in unifying the Lao small independent states into a single Kingdom called “Lane Xang” the land of a million elephants. The successors of the king Fa Ngum consolidated the territory and built many temples, monasteries and developed Lane Xang into an important trading and cultural center. In 1560, King Saya Setthathirat moved the capital to Vientiane and constructed Ho Phakeo temple and That Luang stupa. During the 16th century, the country was torn by warring factions until in 1638, King Souriyavongsa took control. His 57 years reign was considered the nation`s golden age when its influence expanded as far as Yunnan (Southern China), the Shan states, Northeastern Thailand and some areas of Vietnam and Cambodia. After his death there was a dynastic struggle that led to the break- up of the Lane Xang kingdom into three independent states: Luang Prabang, Vientiane, and Champassak. 4. A divided nation conquered by foreigners Vientiane and Champassak kingdoms were conquered by Siam. Luang Prabang was took weak and was unable to fight against the Siam for the reunification of the country. When the French came and established a colony in Indochina, Luang Prabang kingdom asked for French protection in 1893. Facing with the French threat, the Siam withdrew from the kingdoms of Vientiane and Champassak. Then all of three Kingdoms Luang Prabang, Vientiane and Champassak were placed under the oppression of the French protectorate. The Lao heroic people continued to fight against the French. Like the rest of Southeast Asia, the country was shortly occupied by the Japanese during the World War II. The French came back after the Japanese defeat and they were faced with the Lao people’s resistance. In 1945, the Lao people proclaimed its independence from France. Some years later, this proclamation of independence was recognized by the United Nations. The end of the French colonial rule did not bring peace to the Lao people. The US bombing campaign over the portion of the Hochiminh trail crossing the Lao PDR during the “ Vietnam War ” obliged the Lao patriotic people to fight against the US and their local

The “Lamvong” The “Lamvong” is the Lao national folk dance. It is organized for all gladly occasions. The Lao hosts are very proud to invite their foreign guests to join them in the circle “Lamvong” dance with love songs and regional traditional varieties of folk songs. The Culture of tolerance “Bopenh Nhang” this Lao expression literally interpreted means “Never mind” or “take it easy”: but the meaning of “Bopenh Nhang” from the Lao heartfelt feeling is tolerance and tolerance is always the Laotian way. Foreigners can make it easy and it is good for outdoor recreation by walking, talking to the Lao people and enjoying their traditional welcome.

Lao PDR: History III. History 1. A very long existence of human civilization.

The stone tools and other human traces discovered in many parts of the country, especially in Houaphan and Luang Prabang provinces are evidence of the presence of prehistoric man in the Lao territory at least 40,000 years ago. The Lao civilization is

characterized by the influence of the Chinese and Indian cultures. 2. A long history of scattering independent princedoms and principalities:

At the beginning of its history, the Lao PDR had no central power to make it a single country. The Lao land was composed of many independent small states scattered in different parts of the valleys of the Mekong river, Southern China, North Eastern Thailand and some other parts of Indochina. The famous principality was Xiengthong which later became the capital of the Lao unified Lane Xang Kingdom.

Box:2

The word “Lane Xang” means a million elephants. The word “ Lane Xang” with another intonation means a grazing-ground for elephants. The kingdom of Lane Xang for many people can be interpreted as a land of a million elephants; for some historical study, it can be interpreted as a grazing ground for wild elephants because the capital of the Kingdom Luang Prabang was surrounded by fields for the pasture of wild elephants. The word “LAOS” has no meaning, it was used by mistake by the French during the colonial time. The exact word is “LAO”.

Wat Xiengthong (Luang Prabang) Ho Phakeo (Vientiane City)

That Luang in 1896 (Vientiane City) That Luang (present ) Box: 3 The That Luang Stupa is a Buddhist symbol. It is one of the greatest arts of the country. The Stupa is 45 m high and 49 m wide at its base. It is surrounded by 30 little stupas. The That Luang Stupa was constructed in 1566 over a little stupa previously existing in the place by the skilled technicians of the ancient Lane Xang Kingdom during the rule of the King Saya Sethathirath. It is believed that the little stupa previously existing is the symbol of the founding of Vientiane, “ the city of Sandal wood”, one of the Lao principalities existing before the unified Lane Xang Kingdom