ABSTRACT

Laos is emerging as a growing player in the development of the vibrant Mekong Region. Long isolated and dependent on foreign donor assistance, Laos continues to liberalize policies and to move from central economic planning to a more market-oriented economy. A resulting growth cycle has stimulated commerce, improved the purchasing power and choices of many consumers, and has generally improved socioeconomic conditions. These improvements are contrasted with delays in the reform process, which create a drag on the initial success of the New Economic Mechanism (NEM). Further structural changes, including more robust incentives for foreign investment, human resources development, and more banking and monetary policy reforms, are still needed. In this chapter, we review the important trends vis-à-vis socioeconomic development, marketing, and consumer behavior, and discuss implications for an appropriate marketing mix for entering and further developing Laos.