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Cost of doing business in Lao PDR

Contents

A. BUSINESS COSTS*

1. Industrial Land Cost (average cost in USD)

Location

Land Sale(per sq.m)

Land Lease(per sq. m)

Prime Areas
(capital city)

US$ 30-50 US$ 3 - 5/ year (2004)

Other Areas

US$ 20-30 Less than US$ 0.5/year (2001)

2. Office Space Cost (average cost in USD) (2001)

Type of Office Location

Office Space Area
(sq. m)

Rental Cost

Prime Areas
Vientiane
50

Approx.
US$ 300/month

Other Areas
Vientiane
50

Approx.
US$ 30/month

3. Factory Building Cost (average cost in USD) (2001)

Type of Factory Location Total Area Factory lease cost

Ready-built Factory

Prime Areas

Other Areas

1,800
(sq. m)

1,800
(sq. m)

US$ 1,500-3,000/month

US$ 800-2,000/month

4. Warehouse Cost (average cost in USD) (2001)

Type of Warehouse Location Total Area Rental Cost

Light goods

Heavy goods

Vientiane

Vientiane

50 m 2

1 tone

2,500 Kip/day

2,500 Kip/day

Source :Transport Mixte du Laos

*The quoted price under “Business Cost” can be varied subject to negotiation.


B. PRODUCTION COSTS

1. MANPOWER COST

Minimum Monthly Wage for Labors: US$ 28/month (Kip 290,000.00)
* year 2005

Salaries (in USD) (2001)

Position
Monthly median salary range

Manager Entry Level
Manager Middle Level
Manager Senior Level
Accountant
Secretary
Office Clerk
Messenger
Driver
Janitor

300-500
400-500

400-700
100-300
40-200
40-200
100-350
40 or more
100-250

2. UTILITY COSTS

a) Electricity Cost

Category Power Usage

Tariff (Kip/kWh)

Residential

0 – 5 kwh
51 – 150 Kwh
>150 Kwh

113
265
765

Business/Industrial

Commercial
Entertainment
Government Office
Irrigation, agriculture
Industry

826
1,095
706
295
636

Source: Entreprise d'Electricite du Laos (EDL ) (2005)

b) Water Cost

Tariff Category

Consumption Block
(m 3 / month)

Tariff
(USD / m 3 )

Residential

0-5
6-30
more than 30

0.03
0.04
0.05

Business/ Industrial

1-10
11-50
more than 50

0.10
0.14
0.18

Source: Lao Water Supply Enterprise (2005)

c) Gas Tariff

Category

Wholesale (kip/cage)

Retail (kip/cage)

48 kg cage

326,000 341,000

15 kg cage

102,000 107,000

4 kg cage

27,000 28,500

Source: Pasansak Gas (2005)

d) Fuel Cost

Petrol

Wholesale (kip/ litre)

Retail (kip/ litre)

Unleaded

5,830 5,930

Premium

6,470 6,570

Diesel

4,880 4,980

Source: Lao State Fuel Company (2005)

e) Telephone

Category

Tariff (Kip/mn)
(Call within Vientiane )

Tariff (Kip/mn)
(Call to other provinces)

Fixed line
200
360
Mobile
300
360

Prepaid Mobile

700
900

Source: Lao Telecom (2005)  

Remark: USD 1 = 10,500 Kip

 


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