BUSINESS FORMALIZATION IN THE LAO PDR
Gordon Peters and Sean Power from Emerging Markets Consulting
Oudet Souvannavong (independent consultant)
Publication Date: 2017
The macroeconomic performance of the Lao People’s Democratic Republic (Lao PDR) has been remarkably strong and stable over a sustained period of time. In the decade to 2015, the economy grew by an average of 7.8% per year, with annual growth never dipping below 7.0%. While this strong macroeconomic performance has helped reduce poverty and improve nutrition and health, private sector development (PSD) in the Lao PDR over the past decade presents, by its nature, some challenges to the goal of broad-based, inclusive, and sustainable economic growth
A major finding of this report is that many businesses remain informal, and struggle to grow into medium-sized and large businesses that are capable of providing decent work for large numbers of Lao PDR citizens.