Laos Today: Laos The New Silk Road

The Association of Southeast Asian Nations is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.

ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2010, its combined nominal GDP had grown to US$1.8 trillion. If ASEAN were a single entity, it would rank as the ninth largest economy in the world, behind the United States, China, Japan, Germany, France, Brazil, the United Kingdom, and Italy.

As Laos is one of ASEAN member and its economy has been growing steadily over recent years. The significant hydroelectric potential of Laos—around 26,000 megawatts, the majority of which will be available for export rather than domestic consumption—has already attracted considerable attention from countries both in Asia and further afield.

Companies from China, France, Japan, Norway, Russia, South Korea, Thailand, the United States and Vietnam are involved in the planning or construction of several hydroelectric dams. The construction projects are given ample funding from sources such as China’s policy banks, the World Bank and the Asian Development Bank. Although it may be premature to speak of “a scramble for Laos,” the surge in international interest in the country is undeniable.

Laos is set to emerge out of the shadow of its neighbors and finally establish itself as an important regional actor in its own right. According to Kunthep Business TV, Laos is the new silk road that will bring prosperity to their country and to the region as a whole. You can watch the following videos and learn more about new opportunity in Laos.

Episode 1: The New Silk Road