This paper examines the development of logistics sector in Lao PDR. From a survey, three major challenges lack of comprehensive logistics hub, too many bureaucratic procedures and high transportation costs have been found to be major impediments for the development of logistics sector. Furthermore, that majority of joint venture freight transport firms find empty returning truck loads as the major problem in this business. Gradual liberalization is suggested so that the country can develop the capacity to absorb technology transfer and attract more foreign investment, which is important to improve competitiveness of local industry and thereby improve the balance between inbound and outbound volume of goods. The most important suggestion is for the Lao government to accelerate the development of dry ports in order to transform Lao PDR to a concrete unique land-linked country that operates trans-boundary transportation among the GMS countries
Cite this article as:
Phanhpakit Onphanhdala, Putthaxay Sirisack & Laddaphone Khantiyavong. (2017). Challenges on logistics business development in Lao PDR. LJI Business Management Journal, 8, pp 35.