Voluntary Report - public distribution

**Date:** 3/31/2006

**GAIN Report Number:** LA6001

LA6001

**Laos**

**HRI Food Service Sector**

**(Vientiane and Luang Prabang Market)**

**2006**

**Approved by:**

![](media/image1.wmf)Russ Nicely, Agricultural Attache

U.S. Embassy, Bangkok

**Prepared by:**

Sukanya Sirikeratikul, Marketing Specialist

**Report Highlights:**

The tourism sector is expanding as the tourist arrivals almost reached 1
millions in 2005, which is a 2.5 percent increase over 2004. The growth
in tourism industry is creating a potential market for imported high
value food and beverage products used by hotels and restaurants,
especially in Vientiane and Luang Prabang, where the number of hotels
and restaurants are springing up all over the time. This report will
provide a brief overview of the Laos food service market for U.S.
exporters who are interested in exporting their products to Laos.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[LA\]

**Table of Content**

# 

[Market Summary 4](#market-summary)

[Tourism Industry 7](#tourism-industry)

[Advantages and Challenges Facing U.S. Products in Laos
9](#advantages-and-challenges-facing-u.s.-products-in-laos)

[Road Map for Market Entry 9](#road-map-for-market-entry)

[Distribution Channel for HRI Food Service in Laos
10](#distribution-channel-for-hri-food-service-in-laos)

[Best Market Prospects 11](#best-market-prospects)

[Hotels Contact Information 11](#hotels-contact-information)

[Post Contact And Further Information
12](#post-contact-and-further-information)

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# Market Summary

Laos is officially known as the Lao People's Democratic Republic (Lao
PDR). The country is a landlocked country and about two-thirds of the
country is mountainous. It shares a 505 km border with China to the
north, 435km of border with Cambodia to the south, 2,069 km of border
with Vietnam to the east, 1,835 km of border with Thailand to the west,
and a 236 km border with Myanmar to the northwest. Around 80% of the
population lives in rural areas and is engaged in agricultural
activities. The agricultural and forestry sector is the dominant source
of production in the Lao economy, accounting for 47 percent of GDP,
while industry accounts for 27 percent and services 26 percent.
Subsistence agriculture, dominated by rice, accounts for half of GDP and
provides 80 percent of total employment. Rice production is found in
Savannakhet, Saravene, and Champasak and Vientiane. Laos is one of the
world's poorest countries. The economy continues to benefit from aid
from the IMF and other donors and from new foreign investment in food
processing (rice milling and beverage production) and mining. 7.1
percent in GDP growth is forecast for 2006, supported by the
construction of a large dam and expected increases in gold and copper
mining, which have attracted investments from Vietnam, China and
Australia.

According to the IMF, the inflation should slow to 5.0 percent by the
end of 2006, down from 8.8 percent last year. It is the policy of the
government to make the country a transit route for the ASEAN region. The
government has worked to change the country being a landlocked nation
into a land-link connecting to other ASEAN countries. Work on strategic
roads has been completed, reaching the Vietnamese and Thai borders.
Another road under construction through the western part of the country
will tie China to Thailand. Laos continues to improve relations with its
neighbors, particularly Thailand and Vietnam, through growing trade and
investment relations and the exchange of high-level official visits.
Gross domestic per capita was US\$428 in 2004. The Lao People\'s
Democratic Republic (Laos PDR) retains the authority to set minimum
wages by sector and/or geographical region, and provides guidance for
overtime pay calculation. Current minimum wage levels are 93,000 Kip per
month (US\$9.48), which is insufficient to provide a decent standard of
living for a worker and family. Most civil servants receive inadequate
pay. Some employees, especially on construction sites, earn less than
the minimum wage.

Laos's important agricultural products are rice, sweet potatoes,
vegetables, corn, peanuts, tobacco, cotton, sugarcane, coffee, tea,
cattle and poultry. In particular, coffee production has been viewed as
an area of growth for the country. Coffee produced in the south is among
the best quality in the world. Coffee cultivation is currently being
promoted in Champasak, Saravane and Sekong. Forests cover about 47
percent of the country and are comprised of a wide variety of commercial
species suitable for production of sawed timber, plywood, parquet and
furniture. In late 2004, Laos gained Normal Trade Relations status with
the U.S., as the Bilateral Trade Agreement (BTA) that the U.S. and Laos
signed in September 2003 went into affect. The requirements of the
Bilateral Trade Agreement are the same as those required for membership
in the World Trade Organization. Thus, by taking steps to meet the BTA
requirements, Laos also is preparing itself for membership in the World
Trade Organization. At the same time, tariffs are being progressively
lowered under Laos' obligations to the ASEAN Free Trade Area (AFTA). In
December 2005, China signed a trade agreement with Laos conferring
preferential trade tariffs on an additional 91 categories of goods
exports from Laos, bringing the total number to 239. The kip is the
official currency of Laos and the exchange rates have been relatively
stable since 2003. The reference exchange rate for 2005 was kip 10,751 /
US\$1.

**Average mid year population by province and sex, 2002-2004 (in
thousands)**

  -------------- ------------ ----------- ------------ ----------- ------------ -----------
  **Province**   **2002**                 **2003**                 **2004**     

                 **Female**   **Male**    **Female**   **Male**    **Female**   **Male**

  Vientiane      316          317         325          326         334          335
  Capital                                                                       

  Luang Prabang  222          218         229          224         235          231

  Savannakhet    414          398         425          409         437          420

  Champasack     310          296         319          304         328          312

  Other          1,533        1,502       1,574        1,544       1,618        1,586

  **Total**      **2,795**    **2,731**   **2,872**    **2,807**   **2,952**    **2,884**
  -------------- ------------ ----------- ------------ ----------- ------------ -----------

Source: National Statistics Center

The population of Laos reached 6.07 million in 2004, and is growing at
about 2.4 percent per annum. The average population density is 21 per
square kilometer, giving Laos the lowest population density in Asia.
About 55.2 percent of population is between 15-64 years of age. The
education sector has grown strongly as about 70 percent of the
population is literate. The official language of the Lao PDR is Lao.
Thai is commonly spoken in the country, French is also spoken, but
English is emerging as the readily used language in business. Vientiane,
the capital city, is in the west on the Thai border. It is the center
for business and government. Other large cities include Luang Prabang in
the north and Champasak and Savannakhet in the south. There are more
than eight airports in Laos but the only two international airports are
in Vientiane and Luang Prabang. The other 6 domestic airports are in
Xiengkhuang, Savannakhet, Champasack, Bokeo, Oudomxay and Huaphanh.

**Major Economic Indicators, Lao People's Democratic Republic,
2004-2007, percent**

  ----------------------------- ---------- ---------- ---------- ----------
  **Item**                      **2004**   **2005**   **2006**   **2007**

  GDP growth                    6.5        7.0        6.5        5.8

  GDI/GDP                       22.0       22.0       20.7       20.7

  Inflation (CPI)               10.6       7.0        5.0        5.0

  Money supply (M2) growth      21.3       18.0       20.0       20.0

  Fiscal balance^a^/GDP         -4.8       -5.3       -3.9       -3.8

  Merchandise export growth     7.6        27.4       17.8       3.0

  Merchandise import growth     9.5        12.7       13.1       6.6

  Current account^b^/GDP        -0.5       -1.8       -13.3      -13.5

  Exchange Rate, Average        10,820     10,751     n/a        n/a
  (kips/US\$)                                                    
  ----------------------------- ---------- ---------- ---------- ----------

A Excluding grants. B Excluding official transfers

Source: Bank of the Lao PDR; Committee for Planning and Investment;
Ministry of Finance; National Statistical Center; International Monetary
Fund, ADB and Global Insight

Currently Laos has trade relations with more than 30 countries. In
addition, it has signed a trade agreement with 14 countries and is
currently negotiating with number of countries. The main trading
partners with Laos are the Asia and Pacific countries, such as China,
Japan, Singapore, Thailand, Vietnam and Malaysia. A number of European
countries also do business with Laos and the EU, USA and Canada are the
main importers of Laos's products such as garments and coffee. As a
landlocked country with limited food production and natural resources,
Laos is dependent on imports to satisfy some of its food needs. Imports
include fuel, food, and machinery, along with vehicles and various
consumer goods. Thailand is a source for around 60 percent of Laotian
imports; other import partners included Vietnam, Japan, Hong Kong, and
China. The major exporters of food and beverage products to Laos food
service market are Thailand (US\$16 million in 2005), China (US\$3
million in 2005), Vietnam (US\$2 million in 2005), and France
(US\$85,140 in 2005).

## Major Trading Partners, 2004

+-----------+------------+---------+-----------+-------------+--------+
| ##        | **Million  | **Share | **        | **Million   | *      |
| # Exports | US\$**     | (%)**   | Imports** | US\$**      | *Share |
|           |            |         |           |             | (%)**  |
+-----------+------------+---------+-----------+-------------+--------+
| Thailand  | 104.28     | 18.96   | Thailand  | 639.44      | 60.45  |
+-----------+------------+---------+-----------+-------------+--------+
| Vietnam   | 90.18      | 16.40   | China     | 97.17       | 9.19   |
+-----------+------------+---------+-----------+-------------+--------+
| France    | 43.18      | 7.85    | Vietnam   | 91.68       | 8.67   |
+-----------+------------+---------+-----------+-------------+--------+
| Germany   | 30.55      | 5.56    | Singapore | 42.30       | 4.00   |
+-----------+------------+---------+-----------+-------------+--------+
| UK        | 26.85      | 4.88    | Germany   | 26.66       | 2.52   |
+-----------+------------+---------+-----------+-------------+--------+
| Belgium   | 13.37      | 2.43    | Australia | 18.31       | 1.73   |
+-----------+------------+---------+-----------+-------------+--------+
| China     | 12.43      | 2.26    | Finland   | 15.72       | 1.49   |
+-----------+------------+---------+-----------+-------------+--------+
| Italy     | 11.16      | 2.03    | Japan     | 15.40       | 1.46   |
+-----------+------------+---------+-----------+-------------+--------+
| Ne        | 9.95       | 1.81    | Belgium   | 11.24       | 1.06   |
| therlands |            |         |           |             |        |
+-----------+------------+---------+-----------+-------------+--------+
| Japan     | 7.29       | 1.33    | France    | 10.50       | 0.99   |
+-----------+------------+---------+-----------+-------------+--------+

Source: IMF, Direction of Trade Statistics

Laos cuisine, like that of some other Southeast Asian countries,
revolves around rice. Laos food is traditionally eaten with glutinous,
or sticky, rice. Its neighbors and the colonial French have influenced
the food eaten in Laos. Dishes are generally cooked with fresh
ingredients including vegetables, chicken, duck, pork, beef and buffalo.
Sample Laos' dishes are Laap (spicy chopped meat mixed with dry fried
uncooked rice grains), Tam Mak Houng (papaya salad), Som moo (fermented
pork sausage), etc. French Baguettes are found in the business and
tourist cities and mostly served for breakfast. Fresh fruits such as
mango, papaya, coconut, rambutan, custard apple, watermelon, jackfruit
and bananas can be found in Laos. International brand soft drinks like
Cola and Pepsi are available everywhere. Even though Carlsberg,
Heineken, Tiger, Singha and Chang beers are available in this market, it
is very difficult to compete with low price local "Beer Lao". French
wines dominate the Laotian HRI market while Californian wines carried by
hotels and restaurants are at minimum levels. Traditional wet markets
still play a dominant role for local Laotian people. This is where most
local people go on a daily basis to pick up their fresh produce,
anything from chicken, cow's stomachs, or buffalo meat to fresh fish.

## Market Prices for Food Commodities 2000-2004

+------------------------+-----+------+------+------+-------+-------+
| **Item**               | **  | **20 | **20 | **20 | **2   | **2   |
|                        | Uni | 00** | 01** | 02** | 003** | 004** |
|                        | t** |      |      |      |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Rice:                  | 1kg | 1    | 2    | 2    | 2,648 | 2,763 |
|                        |     | ,871 | ,002 | ,200 |       |       |
| -   Glutinous rice     | 1kg |      |      |      | 3,470 | 3,959 |
|                        |     | 2    | 2    | 2    |       |       |
| -   Ordinary rice      |     | ,348 | ,338 | ,640 |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Vegetable:             | 1kg | 1    | 2    | 2    | 2,809 | 3,130 |
|                        |     | ,949 | ,230 | ,599 |       |       |
| -   Morning glory      | 1kg |      |      |      | 3,349 | 3,789 |
|                        |     | 3    | 3    | 4    |       |       |
| -   Spinach            | 1kg | ,132 | ,453 | ,099 | 2,504 | 2,387 |
|                        |     |      |      |      |       |       |
| -   Cucumber           |     | 2    | 2    | 2    |       |       |
|                        |     | ,033 | ,058 | ,378 |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Meat:                  | 1kg | 15   | 15   | 17   | 1     | 2     |
|                        |     | ,240 | ,423 | ,232 | 8,479 | 1,557 |
| -   Pork               | 1kg |      |      |      |       |       |
|                        |     | 16   | 16   | 18   | 2     | 2     |
| -   Buffalo            | 1kg | ,354 | ,789 | ,469 | 1,063 | 4,073 |
|                        |     |      |      |      |       |       |
| -   Beef               | 1kg | 17   | 17   | 19   | 2     | 2     |
|                        |     | ,091 | ,453 | ,279 | 1,690 | 4,799 |
| -   Chicken            |     |      |      |      |       |       |
|                        |     | 14   | 13   | 15   | 1     | 1     |
|                        |     | ,267 | ,467 | ,283 | 5,023 | 9,015 |
+------------------------+-----+------+------+------+-------+-------+
| Fish:                  | 1kg | 16   | 16   | 17   | 1     | 2     |
|                        |     | ,471 | ,714 | ,938 | 8,812 | 1,273 |
| -   Fresh fish         | 1kg |      |      |      |       |       |
|                        |     | 7    | 8    | 9    | 9,745 | 9,948 |
| -   Fermented fish     |     | ,784 | ,384 | ,076 |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Chicken egg            | 1   | 506  | 495  | 551  | 548   | 759   |
|                        | u   |      |      |      |       |       |
|                        | nit |      |      |      |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Sugar                  | 1kg | 2    | 3    | 3    | 4,073 | 4,132 |
|                        |     | ,811 | ,374 | ,859 |       |       |
+------------------------+-----+------+------+------+-------+-------+
| Condensed milk         | 1   | 4    | 4    | 4    | 5,342 | 5,616 |
|                        | can | ,084 | ,200 | ,720 |       |       |
+------------------------+-----+------+------+------+-------+-------+

Source: National Statistics Center

**Proportion of Consumption by Type of Products (%)**

  ----------------------- ----------------------- -----------------------
  **Products**            **1997/1998**           **2002/2003**

  Rice                    46.2                    35.4

  Flour and Bread         2.3                     2.3

  Meat                    16.1                    22.3

  Fish                    12.9                    13.3

  Milk, Cheese and Eggs   0.9                     1.1

  Oils and Fats           0.2                     0.3

  Fruits                  1.7                     5.6

  Vegetable and Potatoes  9.1                     8.6

  Sugar and Sweets        1                       1.3

  Beverage, coffee and    1.4                     1.5
  tea                                             

  Take away food          4.1                     4.8

  Others                  4.1                     3.5
  ----------------------- ----------------------- -----------------------

Source: National Statistics Center

# Tourism Industry

Tourism is considered to be the biggest sector that has generated the
most income at about US\$119 million, followed by the textile industry,
which ranks second and produced about US\$ 99 million, and third is
export of power electricity bringing about US\$86 millions. The tourism
sector is expanding as the tourist arrivals almost reached 1 million in
2005, a 2.5 percent increase over 2004. According to the statistic
report for 2005, of the total number of tourist arrivals, over 80
percent are regional and Pacific region, and the remaining 20 percent
are long-haul tourists that come from the Americas and Europe. There are
four major tourist destinations in Laos, which are Vientiane, Luang
Prabang, Xiengkhuang and Champasack. Tourist sites include Lao temples,
historical sites, ancient ruins, French-style architectures, Laos'
culture and way of life, as well as well-known night markets. Recently,
the government has moved to expand agro-tourism as part of the country's
efforts to eradicate poverty. Luang Prabang is promoted as the major
tourist attraction for its natural beauty and the interesting history as
the former royal capital. The city is renowned as the cultural and
religious capital of Laos. On the 2nd December 1995, UNESCO inscribed
the town on to its World Heritage List, ensuring the preservation of a
mixture of traditional Lao and French colonial architectures. The unique
character and charm of Luang Prabang helps to make it the one of the
most popular tourist destinations in the country.

## Number of tourist arrivals to Laos, 2000-2005

  ------------------------ ------------- ------------- ------------- ------------- -------------
  **Continent**            **2001**      **2002**      **2003**      **2004**      **2005**

  Asia & Pacific           553,249       579,031       498,185       730,107       748,187

  Europe                   80,736        101,924       93,960        112,092       114,868

  America                  34,370        46,704        39,453        47,153        48,321

  Africa and other         5,468         8,003         4,763         5,454         5,589

  **Total**                **673,823**   **735,662**   **636,361**   **894,806**   **916,965**
  ------------------------ ------------- ------------- ------------- ------------- -------------

Source: National Statistics Center

The growth in the tourism industry is creating a potential market for
imported high value food and beverage products used by hotels and
restaurants, especially in Vientiane and Luang Prabang, where the number
of hotels and restaurants are continually increasing. First class hotels
can only be found predominantly in Vientiane (Novotel, Settha Palace,
the Lao Plaza, and Don Chan Palace) and Luang Prabang (The 3Nagas,
Phousi, La Residence Phou Vao, and Villa Santi). About 35 percent of
hotel revenue is generated from food and beverage sales; and average
cost per meal for each restaurant visit is US\$15.

Although tourism development and promotion in Laos is expanding and the
government has implemented several methods to help promote the country
for several years. There are still some limitations in promoting tourism
in Laos, such as limited financial resources for both private and public
tourism related industry development, a lack of skilled professionals in
marketing and promotion, a lack of infrastructure and tourist
facilities, and most importantly, most visitors to Laos are still
low-spending tourists with an average length of stay only 4.3 days.

## Number of Hotels, Guesthouses, and Resorts in Laos, 2002 -- 2005

  -------------- ----------- ---------- ---------- ---------- -------------- ---------- ---------- ----------
  **Province**   **Hotel**                                    **Guesthouse                         
                                                              and Resort**                         

                 **2002**    **2003**   **2004**   **2005**   **2002**       **2003**   **2004**   **2005**

  Vientaine      28          37         46         59         85             126        143        162
  Capital                                                                                          

  Luang Prabang  14          14         15         8          102            123        105        108

  Xiengkhuang    3           10         11         20         10             20         22         24

  Bolikhamxay    10          10         10         5          13             15         15         16

  Savannakhet    9           8          11         7          21             45         49         53

  Champasack     20          22         22         12         45             84         83         82

  Other          27          31         33         24         173            342        382        463

  **Total**      **111**     **132**    **148**    **135**    **449**        **755**    **799**    **908**
  -------------- ----------- ---------- ---------- ---------- -------------- ---------- ---------- ----------

Source: National Statistics Center

In Vientiane, there are more than ten restaurants and about five upper
class hotels using imported food and beverage products. A similar number
of restaurants and hotels serve mostly tourists in Luang Prabang. Most
imported products come into Vientiane via road or air from Thailand.
Some importers, hotels and restaurants in Laos source imported food
products from Makro, BigC, and Tesco Lotus located in Nong Khai,
Udonratchathani and Ubon Ratchathani (Northeastern part of Thailand), as
well as from some suppliers in Chiang Mai. Importing food and beverage
products into Laos is quite complicated and difficult due to problems
with transportation, infrastructure and Customs officials. Meats are
sourced locally and from other countries through Thailand and Vietnam.
Even though there is demand for imported seafood, fish is usually bought
from local sources. There are good opportunities for U.S. food and
agricultural products to capture a greater share of this market. For
example, U.S. beef is highly regarded, but it is not widely marketed due
to strong competition from Australian and New Zealand beef and lamb.
U.S. scallops have been introduced into some hotels and restaurants in
Luang Prabang while U.S. wines and other alcohol beverages also have
good potential in this Laos HRI market. Wine turnovers are about 2 cases
per day during high season and slow down to 5 bottles per day in low
season per establishment. However, price is still a major determinant in
buying decisions. As a result, these products deserve higher levels of
marketing and promotion in order to compete with similar products from
other origins.

## Number of Restaurants in Laos, 2002 -- 2005

  ------------------------------- ---------- ---------- ---------- ----------
  **Province**                    **2002**   **2003**   **2004**   **2005**

  Vientaine Capital               85         85         61         52

  Luang Prabang                   43         65         32         32

  Xiengkhuang                     16         16         12         11

  Bolikhamxay                     20         20         54         100

  Savannakhet                     14         47         47         47

  Champasack                      9          12         11         12

  Other                           147        344        294        331

  **Total**                       **334**    **589**    **511**    **585**
  ------------------------------- ---------- ---------- ---------- ----------

Source: National Statistics Center

# Advantages and Challenges Facing U.S. Products in Laos

+-----------------------------------+-----------------------------------+
| **Advantages**                    | **Challenges**                    |
+-----------------------------------+-----------------------------------+
| High growth in tourism industry   | A limited number of Laos          |
| leads to an increasing number of  | importers and high cost of U.S.   |
| hotels, restaurants and food      | food and beverage products        |
| stores in major tourist           | comparing to other exporting      |
| destinations, represents a        | origins.                          |
| potential market for U.S. exports |                                   |
+-----------------------------------+-----------------------------------+
| Import business tends to multiply | Price factor is determinant when  |
| because of the increasing         | sourcing food and beverage        |
| expansion of transportation       | products for the HRI sector.      |
+-----------------------------------+-----------------------------------+
| Consumer attitudes towards        | Average low wage levels determine |
| imported                          | that most of the population still |
|                                   | cannot afford imported food and   |
| food products are generally       | beverages.                        |
| positive.                         |                                   |
+-----------------------------------+-----------------------------------+

# Road Map for Market Entry

U.S. exporters entering the Laos food service market are advised to get
an experienced local importer, with a suitable background, experience
and extensive distribution network, who can offer full support to HRI
customers. These importers have already established reliable and
efficient distribution channels and have the expertise in food import
procedures and know how to deal with the government officials. Laos'
commercial food distribution system is not well established and the cold
storage system is not well developed. This is mainly due to a wide range
of domestic and imported products being traded via many various
channels. This complexity is compounded by the fact that so many
products are traded unofficially along the borders, with Thailand,
Vietnam and China in particular.

Traditional wet and dry markets still play a dominant role in the
distribution of most food products for local people on a daily basis.
The major importers who supply imported food and beverage products to
Laos' HRI sector are located in Vientiane. Only small grocery and
convenience stores are found in both Vientiane and Luang Prabang. These
grocery stores provide a wide range of mainly imported products to
middle and higher income urban consumers, expatriates, and tourists.
Phimphone Minimart is one of the popular outlets in Vientiane. Thansamay
and Chithanh stores are well known among hotels and restaurants as
sources of some imported food and beverage products. These grocery
stores also act as distributors supplying food products to the HRI
industry in both Vientiane and Luang Prabang. Limited import quantities
and high import cost are major hurdles limiting keep importers from
importing directly from the original exporting sources. Most of these
retailers arrange their own imports but some products are also sourced
from importers. Some U.S., French, and other premium brands are carried
in these stores. Most imported food products sold in these stores are
from Thailand and Vietnam since they are cheaper. Product knowledge and
other hospitality related trainings are essential for developing this
market. The appropriate timeframe to conduct trainings for importers,
retail and HRI contacts is during May-October, which is the low season
period.

# Distribution Channel for HRI Food Service in Laos

## 

## 

## Regulation on Importing Food and Beverages

The government regulates the import of products by systematically
classifying them into groups or type of products, which are encouraged,
controlled and/or prohibited by the state through a taxation and duties
scheme. The encouraged imported products are machinery and equipment
required for the construction of the basic economic infrastructure. Raw
materials and intermediate products needed for export production are
exempt from import taxes. The importers of foreign products must be
enterprises registered correctly under the relevant laws of Laos and
operating in the authorized business sectors. Imported products legally
enter into Laos when shipments have arrived at the port of entry,
estimated duties have been paid, and delivery of the products has been
approved by the customs. There are many possible trading methods include
L/C and T/T.

Customs regulations cover more than 3,500 products, with rates ranging
from 5 percent to 40 percent. Tariff rates on high-value food and
beverage products range between 20-30 percent. Besides the import
tariff, the government also imposes excise taxes on a wide range of
products: 50 percent on beer and cigarettes and 60 percent on other
alcohol beverages. The policy of the Lao government is to develop and
strengthen bilateral trade relations with neighboring countries:
Vietnam, Thailand, China, Myanmar and Cambodia further using border
trade as a mechanism for trade expansion.

For more information about Laos customs procedures, please visit Lao PDR
Customs at http://laocustoms.laopdr.net

# Best Market Prospects

Frozen meats, poultry and seafood (beef, lamb, salmon, scallop, etc.),
canned fruits and vegetables, cereal, cheese, chocolate, dried fruits
and nuts, fruit juices, jam, milk powder, olive oils, pasta, pickles,
sauce and seasoning, vinegar, syrup, snack foods, bakery ingredients,
wine, and liquor.

**U.S. Exports of Consumer-Oriented Agricultural Products to Laos,
2001-2005 (US\$)**

  --------------------- ---------- ---------- ---------- ---------- ----------
  **Item**              **2001**   **2002**   **2003**   **2004**   **2005**

  Snack Foods (excl     9,000      37,000     27,000     18,000     32,000
  nuts)                                                             

  Red Meats (Fresh,     58,000     138,000    0          0          0
  Chilled and Frozen)                                               

  Fresh Fruit           12,000     0          0          0          0

  Processed Fruit and   87,000     0          0          0          0
  Vegetables                                                        

  Wine and Beer         161,000    152,000    109,000    196,000    189,000

  Other                 0          0          0          306,000    0

  Total                 326,000    327,000    136,000    520,000    220,000
  --------------------- ---------- ---------- ---------- ---------- ----------

Source: The United States Department of Agriculture

# Hotels Contact Information

Don Chan Palace Hotel Vientiane

Unit 6 Piavat Village,

Sisatanak District,

Vientiane, Lao PDR

Tel: (856)21 244 169

Fax: (856)21 244 111-2

Email: <fb@donchanpalacelaopdr.com>

Website:
[www.donchanpalacelaopdr.com](http://www.donchanpalacelaopdr.com/)

Contact: Mr. Titirat Chuenchimplee, Food and Beverage Manager

Lao Plaza Hotel

63 Samsenethai Road

PO Box 6708

Vientiane, Lao PDR.

Tel: (856)21 218 800-1

Fax: (856)21 218 808 - 9

Email: <lph@laoplazahotel.com>

Website: [www.laoplazahotel.com](http://www.laoplazahotel.com/)

Contact: Mr. Fukuda Nobuyuki, General Manager

Settha Palace Hotel

6 Pang Kham Street, PO Box 1618,

Vientiane, Lao PDR

Tel: (856)21 217 581-2

Fax: (856)21 217 583

Email: <gm@setthapalace.com>

Website: www.setthapalace.com

Contact: Mr. Eric Howe, General Manager

La Residence Phou Vao

P.O. Box 50

Luang Prabang, Laos

Tel: (856)71 212 530-3

Fax: (856)71 212 534

Email: <khunsadis@yahoo.co.th>

Website: [www.pansea.com](http://www.pansea.com/)

Contact: Mr. Sadit Changnganiam, Food and Beverage Manager

Le Elephant Restaurant

Ban Vat Nong,

P.O. Box 812,

Luang Prabang, Lao PDR

Tel: (856)71 252 482

Fax: (856)71 252 492

Email: <contact@elephant-restau.com>

Website: [www.elephant-restau.com](http://www.elephant-restau.com/)

Contact: Mr. Yannick Upravan, the owner

The Apsara Restaurant

Ban Wat Sene, Luang Prabang

Tel: (856)71 254 670

Fax: (856)71 254 252

Email: <info@theapsara.com>

Website: [www.theapsara.com](http://www.theapsara.com/)

Contact: Mr. Ivan Scholte, the owner

The Grand Luang Prabang

Ban Xiengkeo, Khet Sangkalok

P.O. Box 1191 Luang Prabang, Lao PDR

Tel: (856)71 253 851-7

Fax: (856)71 253 027-8

Email: <pat@grandluangprabang.com>

Website: [www.grandluangprabang.com](http://www.grandluangprabang.com/)

Contact: Mr. Patrarakrit Sangumpai, Food and Beverage Manager

# Post Contact And Further Information

The Foreign Agricultural Service in Bangkok maintains up-to-date
information covering food and agricultural import opportunities in
Thailand and would be pleased to assist in facilitating U.S. exports and
entry to the Thai market. Questions or comments regarding this report
should be directed to the Foreign Agricultural Service in Bangkok at the
following local or U.S. mailing address:

+-----------------------------------+-----------------------------------+
| **[Local]{.underline}:**          | **[U.S. Mail]{.underline}:**      |
|                                   |                                   |
| Office of Agricultural Affairs    | Office of Agricultural Affairs    |
|                                   |                                   |
| U.S. Embassy                      | U.S. Embassy, Box 41              |
|                                   |                                   |
| 120-122, Wireless Road            | APO AP 96546                      |
|                                   |                                   |
| Bangkok 10330                     |                                   |
|                                   |                                   |
| Tel. +662-205-5106                |                                   |
|                                   |                                   |
| Fax. +662-255-2907                |                                   |
|                                   |                                   |
| Email: agbangkok@usda.gov         |                                   |
|                                   |                                   |
| Home page: www.usdathailand.org   |                                   |
+-----------------------------------+-----------------------------------+

End of Report.