We expect Laos construction sector to see a moderation in growth over the next few years due to a decline in public infrastructure projects and a challenging business environment that will hinder private investment. This is reflected in our forecasts, and we forecast that the sector will expand by an annual average rate of -.- between ---- and ---- in real terms, slower than the annual average growth rate of --.- registered between ---- and ----. ...This is reflected in our forecasts, and we forecast that the sector will expand by an annual average rate of -.- between ---- and ---- in real terms, slower than the annual average growth rate of --.- registered between ---- and ----. During the past decade, strong growth in Laos construction sector could be attributed to an increase in the number of public infrastructure projects on offer, such as roads and buildings, the hosting of major international events, such as the ---- Southeast Asian Games, and the development of its mining and electricity export sectors by foreign investors. We do not expect these drivers to continue supporting construction activity over the near term. ...During the past decade, strong growth in Laos construction sector could be attributed to an increase in the number of public infrastructure projects on offer, such as roads and buildings, the hosting of major international events, such as the ---- Southeast Asian Games, and the development of its mining and electricity export sectors by foreign investors. We do not expect these drivers to continue supporting construction activity over the near term.
...Both Laos and China remain committed to building the high-speed rail project that will link China s Kunming with the Lao capital, Vientiane. While we expect improved transport connectivity regionally to provide a boost to Lao s railway construction outlook over the coming years, the project is likely to face implementation delays. ...While we expect improved transport connectivity regionally to provide a boost to Lao s railway construction outlook over the coming years, the project is likely to face implementation delays. � Laos s power-related infrastructure, notably the hydropower sector, will expand at a rapid pace over the coming years amid the government s commitment to become the battery of South East Asia. However, the Lao government s increasingly unilateral development approach could result in diplomatic pressure, particularly from Vietnam, and public backlash. ...� Laos s power-related infrastructure, notably the hydropower sector, will expand at a rapid pace over the coming years amid the government s commitment to become the battery of South East Asia. However, the Lao government s increasingly unilateral development approach could result in diplomatic pressure, particularly from Vietnam, and public backlash.
...BMI View: Laos s infrastructure sector offers significant investment opportunities, particularly in the areas of hydropower and transport segments. That said, the business environment remains challenging due to wide corruption, a lack of transparency, undeveloped legal frameworks, bureaucracy and red tape. ...
