Economical context
Laos seeks to deepen its regional integration within ASEAN (which it integrated in 1997), while consolidating its ties with its neighbors (Vietnam, China and Thailand). The Prime Minister is anxious to diversify the relations of Laos: by establishing not only closer relations with the countries of ASEAN but also with the different countries of the region as well as Europe. Laos took over the presidency of ASEAN in 2016.
Laos is linked with Vietnam by a special Treaty of Friendship and Cooperation signed in 1977 (Hanoi provides training for most cadres of the Lao People's Revolutionary Party). Vietnam is the second largest investor in Laos after China. Thailand remains the main economic partner of Laos (1st customer, mainly through electricity sales, and 1st supplier).
China is the largest investor in Laos since 2013, displacing Thailand and Vietnam (USD 8.5 billion, mainly in the mining, forestry, hydropower and infrastructure sectors). With a market share of 27%, China is now the second largest trading partner with 2.8 billion in trade in 2018 behind Thailand (US $ 5.8 billion in 2018). China has begun construction of a railway line that will connect Kunming to Vientiane by the end of 2021 (for USD 6 billion).
Relations with Japan and Korea are marked by development assistance from Tokyo, the largest bilateral development aid provider (US $ 77.4 million in 2017), and Seoul, the second largest bilateral partner (US $ 56.2 million). $ in 2017).
Beyond its immediate environment, Laos seeks to integrate more in the international community. A member of the International Organization of La Francophonie since 1991 and of the World Trade Organization since 2013, he is also one of the first states to ratify the Oslo convention on cluster munitions. Finally, Laos is the first ASEAN country to have ratified the Paris Climate Agreement.
source : https://www.diplomatie.gouv.fr/fr/dossiers-pays/laos/presentation-du-laos/article/presentation-du-laos