Lao Voices

As an addition to “What is up with the Thai bashing” I will try to make the point that Thai bashing by certain Lao people is not only pointless but also very counterproductive to Laos. The issues of kinship and cultural ties of Laos and Thailand have already been made. I want to emphasize a third and very important argument why Lao and Thai people should strengthen their relationship: economic ties.

Presently,there is no doubt that Thailand is in a better economic state than Laos for many historical reasons. And all who feel connected to Laos wish to change this. It is certainly possible to make Laos more prosperous. Southeast Asia underwent an impressive economic growth trajectory over the past three decades.

The main reason for this substantial growth is Foreign Direct Investments (FDI) in Southeast Asia. This is especially important to Laos. It is a landlocked country and, therefore, is dependent on neighboring transit countries for their external trade and suffer from high trade transaction costs.

Huge transport costs, inadequate infrastructure and bottlenecks associated with import and export requirements can be a serious stumbling block to their integration into the global economy, impairing export competitiveness or the inflow of FDI.

Moreover, as Laos has found, having a small economy means that a single large FDI project can have a potentially substantial impact on its entire economy, even adding whole percentage points to national GDP.

source: Foreign Direct Investment in Cambodia, Laos and Vietnam:A Regional Overview

This is also the case with FDI of Thailand in Laos. Thailand is 1) the largest investor in Laos and 2) makes significantly large FDI investments that impact the economy of Laos as a whole. Although China is definitely on the rise as investor in Laos, Thailand remains the most important investor.

When you encounter (Lao) people who advocate that boycotting Thai products and services is a good way to improve Laos and their so-called Lao pride, please note that they are completely ignorant of the facts and the way to build a strong economy that feeds the mouths and educates the minds in Laos. Lao pride cannot be derived from ignorance.