Laos: opportunities and resilience

A year ago I was lucky enough to become the ANZ Country Head in Laos, a nation of almost eight million people, 70 languages and one of the youngest populations in South East Asia.

“The people of Laos are ready for the next part of their economic story as well. It remains a strategic location for our multinational customers who see a range of sectors emerging in the country.”

There’s often discussion around Asia’s growth as an economic powerhouse – but to really understand this story you need to comprehend how unique each country is and the vastly different journeys they are on.

Nothing expresses this to me like my time in Laos - a country now seeing growth after fairing adversity in recent years.

Laos has certainly been through a challenging economic period characterised by high inflation, depreciation of the currency - the Kip, plus significant government debt, and low levels of foreign reserves.

However, the economic landscape has seen positive changes over the past 12 months.

This conveys for me how the pace of change in this region can bring benefits to not only our clients – who are involved in growing the diversity of Lao business – but also to the country at large.

The Laos opportunity

My first week in the job was rather unique.

I had versed myself with the details of the country and our customers – some of our top multinational customers have a presence in Laos – and felt prepared to begin our work.

But first there was the matter of Laos hosting the vibrant 45th Association of Southeast Asian Nations summit, which was held in the capital of Vientiane. This included guests such as Australian Prime Minister Anthony Albanese and the Austrade Trade Mission led by Nicolas Moore AO.

Additionally, we had the honor of hosting the New Zealand Prime Minister Christopher Luxon during the ASEAN Summit, which further strengthened ANZ’s diplomatic and business ties.

So, it was a unique week – which reflected the real buzz around Laos.

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Picture from AustCham Lao Event. From left to right: Christopher Wheatley, ANZ Chief Risk Officer for Vietnam and Laos, Rifa'i Bahashwan, ANZ Director Transaction Banking Sales, Bernadette Shaw, ANZ Country Head Laos, Phetsathaphone Keovongvichith, Director General of the Banking Operations Department at the Bank of the Lao PDR, Khoon Goh, ANZ Head of Asia Research, Aekananh Keosouvath, Head of Coverage ANZ Laos and Souksavath Huangsavanh, Senior Relationship Manager ANZ Laos.

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Picture from AustCham Lao Event. From left to right: Christopher Wheatley, ANZ Chief Risk Officer for Vietnam and Laos, Khoon Goh, ANZ Head of Asia Research, Chris Raciti, ANZ Country Head Singapore and Head of SEAIME, Bernadette Shaw, ANZ Country Head Laos and Rifa'i Bahashwan, ANZ Director Transaction Banking Sales.

That buzz has been well rewarded through progress seen in the economy since.

Laos’ macroeconomic indicators have improved significantly in 2025. Inflation has dropped from 28 per cent in September 2024 to 5 per cent in September 2025 (down from a peak of 41 per cent in 2023).

The Kip has stabilised in 2025 after a prolonged period of sharp depreciation throughout 2023 and early 2024.

But what is driving this and how is ANZ involved?

Tourism: back on track

A key economic driver in Laos is tourism.

And in the last year tourism has seen a strong recovery - Laos welcomed over 2.3 million international tourists in the first half of 2025, driven by regional travel demand and improved connectivity.

Growth was supported by enhanced transport links, including the Laos-China Railway and expanded regional flights, positioning Laos as a key destination for eco-tourism and cultural heritage.

This year gross domestic product is now forecasted at 4.8 per cent, driven by this tourism recovery and trade re-routing due to US tariffs.  

It has also seen a debt-to-GDP ratio reduced to 94 per cent, down from 112 per cent in 2022.

ANZ has a nearly two-decade presence in Laos and long been a partner in the country’s tourism sector - focusing on multinational corporates, including companies in hospitality, agriculture, and logistics, which are critical to the tourism ecosystem.

A diversifying economy

But the people of Laos are ready for the next part of their economic story as well.

It remains a strategic location for our multinational customers who see a range of sectors emerging in the country.

It also continues to be a fantastic regional hub: Laos’ central location in mainland Southeast Asia - bordering China, Thailand, Vietnam, Cambodia, and Myanmar -combined with expanding rail, road, and air links, positions it as a growing logistics and trade gateway for regional business and investment.

This means our clients are interested in business opportunities from infrastructure to green energy, agriculture, tourism, and the digital economy - all key areas of interest.

Agribusiness, Costa Group is one client growing its presence in Laos. ANZ Laos is proud to be the company’s main banking partner in Laos.

For this reason - June for ANZ in Laos was all about blueberries.

Let me explain. 

It was great to be able to travel south to Pakse for the official launch of Costa Group’s blueberry farm in Paksong on the Bolaven Plateau, a region known for its fertile soil and cool climate.

The project has begun with 17 hectares of blueberry crops, with plans to expand to 200 hectares, with a target of 2,000 jobs as the farm scales up. The blueberries are grown in polytunnels using substrate, a method that improves yield, reduces water usage, and enhances climate resilience.

Laos’ proximity to China and Southeast Asia positions Costa to meet rising regional demand.  

A year of lessons

A few weeks ago we held the official opening ceremony for our new office in the thriving Sikhottabong district of Vientian, marking a significant milestone in ANZ’s nearly two decade presence in Laos.

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In a broader sense the investment in the new office reflects ANZ’s commitment to Laos and its role in uplifting the local financial sector.

While ANZ in Laos is about creating opportunities for people and businesses to reach their potential – it is the broader cultural resilience which underpins for me this small part of the growing Asia economic story.

As we step into financial year 2026 in our new building, it symbolises new beginnings for our business here. We are eager to further define ANZ's unique position for our multinational clients with our ongoing presence in Laos.

Bernadette Shaw is ANZ Country Head for Laos