Who Leads Laos?

Leadership

Thongloun Sisoulith

President of Laos

Political Party

LPRP

Inaugurated

Mar 22, 2021

Term Ends

2026

Next Election

2026

Born

Nov 10, 1945 in Hua Phan, Laos

Country Population

7.5M

Continent

Asia

Thongloun Sisoulith has served as president since 2021, previously serving as prime minister. He studied engineering in the Soviet Union and rose through the party ranks. He faces challenges including managing Laos's significant debt to China from Belt and Road infrastructure projects and environmental concerns over hydroelectric dam construction on the Mekong.

Government

Capital

Vientiane

Official Language(s)

Lao

Currency

Kip (LAK)

Government Type

Communist State

Area

236,800 km²

Laos is a landlocked Southeast Asian country known for its mountainous terrain, Buddhist monasteries, and French colonial architecture. It is governed by the communist Lao People's Revolutionary Party, the only legal political party. The Mekong River is central to Laotian life and culture. Laos was heavily bombed during the Vietnam War, making it the most bombed country per capita in history.

Laos is a one-party socialist republic. The Lao People's Revolutionary Party (LPRP) is the only legal party. President Thongloun Sisoulith (LPRP) has served since January 2021. Prime Minister Sonexay Siphandon has served since December 2021. The National Assembly has 164 seats (all LPRP candidates). Laos has been communist since 1975 when the Pathet Lao movement took power following the end of the Vietnam War era conflicts. Laos maintains close relations with Vietnam and China, and is sometimes called 'the forgotten land' for its low international profile despite significant geopolitical importance.

Economic Snapshot

GDP

$15.8B

GDP Per Capita

$2,100

Income Group

Lower-middle income

Trade Balance

Deficit

Inflation

25.2% (LSB, 2023; severe currency crisis)

Laos has pursued the 'land-linked, not landlocked' strategy: transforming its geographic disadvantage (landlocked; 6 international borders) into an advantage by becoming a transit corridor for China, Thailand, Vietnam, and eventually the rest of ASEAN. The China-Laos Railway is the physical expression of this strategy. But the strategy's debt burden (most infrastructure financed by Chinese loans) has become acute: Laos's debt reached approximately 90% of GDP; the kip collapsed; inflation surged. The hydropower strategy is also at a crossroads: Laos is simultaneously Southeast Asia's most ambitious dam builder and the country most likely to trigger regional conflict over water. The Mekong mainstream dams affect food security for 60+ million downstream people (in Cambodia and Vietnam especially) who depend on Mekong fish as their primary protein. Cambodia's Tonle Sap Lake (the world's largest seasonal lake; fish spawning ground) is directly affected by upstream dam operations. The UXO crisis is one of the world's most ignored humanitarian legacies: 50 years after U.S. bombing ended, Lao farmers are still killed by cluster munitions while plowing rice fields. The Obama administration gave $90 million over 3 years to UXO clearance (unprecedented; the first significant U.S. funding); progress is real but the scale of contamination means complete clearance could take 100+ years.

Major Industries

• Hydropower (Laos is the 'battery of Southeast Asia'; major electricity exporter to Thailand)
• Mining (copper; gold; potash; tin)
• Tourism (Luang Prabang: UNESCO city; Vang Vieng; 4,000 Islands)
• Agriculture (rice; rubber; cassava)
• Logging & timber (controversial)
• China-Laos Railway (new economic corridor)

Laos is known for: Laos is the 'Battery of Southeast Asia': the country is building dozens of hydropower dams on the Mekong and its tributaries to export electricity to Thailand, Vietnam, and eventually China and Singapore. The China-Laos Railway (completed December 2021; high-speed rail from Boten on the China border to Vientiane; approximately $6 billion; 70% financed by Chinese loans) is the most transformative Chinese infrastructure project in Southeast Asia. Luang Prabang (UNESCO World Heritage; 1,000-year-old Buddhist city) is one of Southeast Asia's most extraordinary cultural sites.

Trade Profile

Laos runs a trade deficit despite electricity and mineral exports. Chinese debt service is a heavy burden. Tourism was severely impacted by COVID and has partially recovered. The currency crisis (kip depreciation) has raised import costs dramatically.

Top Exports

• Electricity (to Thailand, Vietnam)
• Mining products (copper, gold)
• Agricultural products (rice; rubber; cassava)
• Timber
• Tourism (services)

Top Imports

• Petroleum products
• Machinery
• Consumer goods
• Vehicles
• Electronics
• Food

Export Destinations

• Thailand
• China
• Vietnam

Import Partners

• Thailand
• China
• Vietnam

The world depends on Laos for: Hydroelectricity (essential for Thailand and Vietnam's energy mix), copper and gold, and the Mekong water resource (shared with 5 countries)

Laos depends on the world for: Petroleum, machinery, consumer goods, food, and Chinese investment/loans

Global Role

Laos's global significance is as the world's most bombed country per capita (Vietnam War UXO crisis still killing civilians), the 'Battery of Southeast Asia' (hydropower exporter), the China-Laos high-speed railway, Luang Prabang's UNESCO Buddhist heritage, and the Chinese debt trap controversy.

• The U.S. dropped approximately 2 million tons of bombs on Laos during 1964-1973 (the 'Secret War'); more bombs than were dropped on Germany and Japan combined in WWII; approximately 30% are estimated UXO still killing approximately 50-100 people per year
• The China-Laos Railway (opened December 2021; 1,000 km; high-speed; approximately $6 billion cost) is the most transformative Chinese infrastructure project in Southeast Asia; it connects Kunming (China) to Vientiane (Laos); eventually to extend to Thailand, Malaysia, Singapore
• Laos has transferred a 25-year controlling stake in its national electricity grid (EDL-T; Electricité du Laos-Transmission) to a Chinese consortium (China Southern Power Grid) in 2021 as partial debt repayment; a significant example of Chinese debt-equity conversion
• Luang Prabang (UNESCO World Heritage; 1,000-year-old Buddhist royal capital; 30+ temples; daily alms-giving ceremony at dawn) is one of Southeast Asia's most perfectly preserved ancient Buddhist cities
• The Mekong mainstream dams (Xayaburi; Don Sahong; Pak Beng; Luang Prabang dams) are highly controversial: they generate electricity for Laos but downstream countries (Cambodia; Vietnam; approximately 60 million people depend on Mekong fish) argue they disrupt fisheries and agriculture
• Laos's kip lost approximately 70% of its value vs. the USD in 2021-2023; inflation reached 40%+; the debt crisis is severe; Laos has avoided a technical default partly through Chinese loan restructuring
• The Mekong River (South China Sea origins; 4,350 km; 6th longest Asian river) forms Laos's entire western border with Thailand; the 4,000 Islands (Si Phan Don) in southern Laos (Mekong's widest point; 14 km wide) is one of Southeast Asia's most extraordinary natural areas; Irrawaddy dolphins survive here

Frequently Asked Questions

Who is the current Prime Minister of Laos?

Sonexay Siphandon has been Prime Minister since December 2021. He is the son of former President and LPRP General Secretary Khamtai Siphandon (who ruled 1991-2006). President Thongloun Sisoulith leads the country and the LPRP (ruling party). Laos is a single-party communist state; all senior leadership is from the Lao People's Revolutionary Party.

Why is Laos called the world's most bombed country?

During the Vietnam War (1964-1973), the U.S. conducted a 'Secret War' in Laos: supporting Royalist and Hmong forces against the Pathet Lao communists (who were backed by North Vietnam) and bombing the Ho Chi Minh Trail (which ran through Laos). The U.S. flew approximately 580,000 bombing missions and dropped approximately 2 million tons of bombs, more than was dropped on Germany and Japan combined in WWII. Approximately 30% of the bombs (primarily cluster submunitions; 'bombies') failed to explode; an estimated 80 million+ remain in the soil, still killing approximately 50-100 people per year, mainly farmers and children.

What is the China-Laos Railway and why is it significant?

The China-Laos Railway is a 1,000 km high-speed rail line (electric; 160 km/h) connecting Boten (on the China-Laos border) to Vientiane (the Laotian capital), opened December 2, 2021. Cost approximately $6 billion, of which 70% was Chinese government loans and 30% was Laotian government funding (itself largely Chinese loans). It is the first high-speed rail in Southeast Asia that does not require a transfer at China's border. The rail is part of China's Belt and Road Initiative and is intended to eventually connect China's Yunnan Province through Laos to Thailand, Malaysia, and Singapore. Laos transferred a 25-year controlling stake in its electricity grid to a Chinese company as partial debt repayment in 2021.

Related Countries

• China: Northern neighbor; dominant economic partner; China-Laos Railway; primary creditor; Chinese investment dominates Lao economy
• Thailand: Western neighbor; largest trade partner; buys most Laotian electricity; significant Thai investment; Mekong shared border
• Vietnam: Eastern neighbor; LPRP has historically modeled itself on Vietnamese communism; Vietnam buys Laotian electricity; 2nd largest trade partner
• Cambodia: Downstream Mekong neighbor most affected by Laotian dams (Tonle Sap Lake fisheries dependent on Mekong flow)
• Myanmar: Northern ASEAN neighbor; both authoritarian-leaning governments; Mekong upper river shared
• United States: U.S. bombing (2 million tons; 1964-1973) created UXO crisis still killing Laotians; Obama administration provided first significant UXO clearance funding ($90 million); diplomatic relations