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LAOS Freight And Logistics Market Size (2024 - 2029)

The logistics market size in Laos is poised for growth, driven by the country's strategic geographic location and economic expansion. Despite being one of the fastest-growing economies in the ASEAN region, Laos' logistics sector remains underdeveloped compared to its neighbors, primarily due to weak infrastructure and high logistics costs. The government's commitment to enhancing infrastructure and the signing of various bilateral and multilateral trade agreements aim to improve connectivity and boost trade activities. These efforts are expected to contribute significantly to the market's expansion over the forecast period.

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Market Size of LAOS Freight And Logistics Industry

laos_logistics_summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.47 %

Major Players

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*Disclaimer: Major Players sorted in no particular order

Laos Freight and Logistics Market Analysis

The Laos freight and logistics market is estimated to be valued at USD 497.46 million in 2018 and is estimated to grow at a CAGR of 8.47 % during the forecast period.

  • Laos is one of the fastest-growing economies in the ASEAN region. The country has witnessed economic growth of more than 7% in recent years.
  • With a population of just more than 6.5 million, the logistics sector in the country is less developed, when compared to other countries in the region. The logistics infrastructure is weak in the country, which results in high logistics costs. For instance, according to industrial sources, more than 30% of the business costs in the motor fuels retail and supply in Laos were related to logistics.
  • The contribution of the transport and storage sector in the country is estimated to be around 5% of the GDP, which is lower than the average contribution for developing countries of 8%. This can be attributed to the low level of participation of Lao companies in international transport and the high level of informal employment in the Lao transport industry.
  • The Laos government has allocated a huge budget for developing and improving the infrastructure facilities to link with the neighboring countries. The country has signed bilateral trade agreements with neighboring countries, which include Cambodia, Vietnam, and Thailand.
  • In addition to this, to boost the trade activity, Laos has also signed multilateral agreements, such as Laos-Vietnam-Thailand, Laos-Vietnam-Cambodia, the Great Mekong Sub-Regional Cross-Border Transport Agreement (GMS CBTA), and the ASEAN Framework Agreement.
  • The country is located at a strategic geographic location bordering the major countries of China, Thailand along with Vietnam, Myanmar, and Cambodia. Moreover, the Mekong River that flows across the country presents a huge opportunity for reducing the logistics costs.

Laos Freight and Logistics Industry Segmentation

A complete background analysis of the Laos freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries are covered in the report.

BY FUNCTION
Freight Transport
Road
Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Others
BY END USER
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade (Wholesale and Retail Segments - FMCG included)
Other End Users (Telecommunications, Pharmaceuticals, etc.)
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LAOS Freight And Logistics Market Size Summary

The logistics market in Laos is poised for significant growth, driven by the country's strategic location and economic expansion within the ASEAN region. Despite being one of the fastest-growing economies, Laos faces challenges with underdeveloped logistics infrastructure, leading to high logistics costs. The transport and storage sector's contribution to GDP is below the average for developing countries, partly due to limited participation in international transport and a high level of informal employment. The Lao government is actively investing in infrastructure improvements and has established bilateral and multilateral trade agreements to enhance regional connectivity. These efforts are supported by Laos's strategic geographic position, bordering major countries like China, Thailand, and Vietnam, and the potential of the Mekong River to reduce logistics costs.

The freight and logistics market in Laos is characterized by a dominant road transport sector, with over 80% of freight traffic carried by roads, most of which are unpaved. The country's rail services are minimal, with only a short section connecting to Thailand, highlighting the need for infrastructure development. Laos is a key focus in China's Belt and Road Initiative, with significant projects like the Boten-Vientiane railway aiming to enhance connectivity and reduce travel time. The agriculture, fishing, and forestry sectors play a crucial role in the economy, with increasing agricultural exports driven by commercialization and improved commodity prices. However, the logistics market remains less competitive, with a limited presence of international players and a high dependence on foreign trucks for import and export activities. As Laos continues to grow economically, it is becoming an attractive destination for foreign firms, with potential for emerging as a vital link in the regional value chain.

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LAOS Freight And Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Government Regulations and Initiatives

    4. 1.4 Insights on the E-commerce Industry

    5. 1.5 Insights On Greater Mekong Sub-region (GMS) and Other Transport Agreements And Initiatives

    6. 1.6 Insights on Key Transport Corridors

    7. 1.7 Insights on Special Economic Zones (SEZs)

  2. 2. MARKET SEGMENTATION

    1. 2.1 BY FUNCTION

      1. 2.1.1 Freight Transport

        1. 2.1.1.1 Road

        2. 2.1.1.2 Inland Water

        3. 2.1.1.3 Air

        4. 2.1.1.4 Rail

      2. 2.1.2 Freight Forwarding

      3. 2.1.3 Warehousing

      4. 2.1.4 Value-added Services and Others

    2. 2.2 BY END USER

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Oil and Gas, Mining, and Quarrying

      3. 2.2.3 Agriculture, Fishing, and Forestry

      4. 2.2.4 Construction

      5. 2.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)

      6. 2.2.6 Other End Users (Telecommunications, Pharmaceuticals, etc.)

LAOS Freight And Logistics Market Size FAQs

The LAOS Freight And Logistics Market is projected to register a CAGR of 8.47% during the forecast period (2024-2029)

Nippon Yusen Kabushiki Kaisha (Yusen Logistics Co. Ltd.), Linfox Pty Ltd, Bolloré Transport & Logistics, Savan Logistics and Sayfon Logistics are the major companies operating in the LAOS Freight And Logistics Market.

Laos Freight and Logistics Market Report Snapshots

Logistics Market in Laos Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)