Laos-Japan Institute

ສະຖາບັນລາວ-ຍີ່ປຸ່ນ | ラオス日本センター

LJI Business Management Journal

Volume. 8, Published on July 2017, Page 35

Challenges on logistics business development in Lao PDR

Phanhpakit Onphanhdala1*, Putthaxay Sirisack2 & Laddaphone Khantiyavong3



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

* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

1,3 Laos-japan Human Resource Development institute, National University of Laos, Vientiane, Lao PDR

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.