Business operations face high logistics costs, study says

High logistics costs in Laos are still a major obstruction for business operations throughout the domestic private sector and can also deter investors, a recent study suggests. Logistics costs in the country are as high as double compared to other neighbouring or ASEAN countries according to the Japan External Trade Organisation’s (JETRO) survey team. A study conducted by the survey team has compared logistics costs between Laos and Thailand and especially those costs between Vientiane to Savannakhet province and Bangkok to Khon Kaen province. The route from Vientiane to Savannakhet province is 490km long and the cost was worked out to be US$2.5 per kilometre while the route from Bangkok to Khon Kaen is 450km long and costs only US$1.1 per kilometre.

Keep reading