Laos is rapidly becoming a key market for advertising, outdoor advertising, airport advertising, and digital media, particularly in Vientiane and Luang Prabang. With economic growth, increasing tourist arrivals, and strong foreign investments, the country presents a growing opportunity for businesses looking to establish brand visibility. This article explores Laos’ evolving advertising landscape, the rise of tourist advertising, and how businesses can leverage out-of-home (OOH) advertising for maximum impact.

Economic Growth and Tourism Expansion

Laos’ Economic Transformation and Business Growth

Laos has been experiencing steady economic growth, with the GDP increasing at an average of 6-7% annually before the pandemic. The advertising industry is expanding in response to new investments in tourism, retail, and real estate. Vientiane and Luang Prabang are central to this transformation, attracting foreign businesses and advertising agencies.

International investors are increasingly targeting Laos for special economic zones (SEZs), which offer tax holidays and incentives depending on the industry. SEZs in Vientiane, Savannakhet, and Champasak provinces have drawn foreign investments in manufacturing, logistics, and services. Additionally, Thai-invested private hospitals are attracting medical tourists to Vientiane, while automobile sales, particularly for electric vehicles (EVs), are surging as demand for sustainable transport grows. 

Demand for EVs in Laos surged – with 2,101 EVs were imported in 2023, accounting for 25.1 percent of all new vehicle registrations. As of October 2024, the total imported electric cars surged to  4,437, highlighting a consumer shift towards EVs driven by cost efficiency and environmental concerns. Popular brands include Zeekr, Xpeng and Toyota. These are all part of the strong government push including for other vehicles such as 2 wheelers and buses and the transportation policy which offers a 30 percent reduction in the annual road tax for electric vehicles compared to their petrol counterparts with equivalent engine power and allowing EVs priority parking at charging stations and other public parking areas.

China’s Influence: The China-Laos Relationship

China plays a pivotal role in Laos’ economic expansion, especially through the Belt and Road Initiative (BRI). The China-Laos Railway (中老铁路), which opened in 2021, has significantly improved transport efficiency and trade between Vientiane and Kunming. Special Economic Zones (SEZs) such as the Vientiane Saysettha Development Zone (万象赛色塔综合开发区) have attracted further Chinese investments, particularly in energy and industrial projects led by companies like China Southern Power Grid (中国南方电网).

Key Local Industries and Brands in Laos

Laos has several strong local brands that have expanded regionally. Beerlao (Lao Brewery Company) remains one of the country’s most well-known brands, recognized for its premium beer. Dao Coffee, a leading coffee producer, has successfully penetrated international markets with high-quality Lao-grown coffee. Lao Tobacco Ltd., a significant player in the tobacco industry, and PS Lao Enterprise, specializing in consumer goods, represent key local companies contributing to the economy.

Business Environment & Investment Opportunities

Recent government policies have made Laos an attractive market for foreign investment. The telecommunications sector, featuring key players such as Lao Telecom, Unitel, and Beeline Laos, has grown alongside the expansion of mobile and digital services. Retail and e-commerce are also experiencing a surge, with companies like Alibaba and JD.com exploring opportunities in the Lao market. Additionally, banking and finance are gaining traction, with financial institutions such as Bank of China Laos and ICBC Laos strengthening their presence in the country.

The Impact of Tourism on Advertising Demand

Tourism is a major driver of economic activity in Laos. Luang Prabang, a UNESCO World Heritage Site, and Vientiane, the capital city, welcome millions of visitors annually. The Lao government has targeted tourism, particularly ecotourism, as a major area of future growth, with a push to attract upmarket tourists by liberalizing its aviation policies. More frequent and less expensive flights, such as new routes operated by Scoot and other regional airlines, have made Laos a more accessible destination. For the preparation for Laos’ ASEAN chairmanship in 2024, several new hotels are opening, offering fresh opportunities for hospitality advertising and brand sponsorships. Some of the new hotels that opened in Vientiane in 2024 are:

• Thailand’s Centara Hotels and Resorts with its 95-key COSI Vientiane Nam Phu. This is the lifestyle brand’s first overseas venture. 

• Spanish hospitality brand with its Melia Collection took over a onetime palace of a Lao prince creating The Grand Luang Prabang. This is the first hotel in Laos to join Melia’s growing presence in the South-east Asia region. 

• Hilton’s 10th market in Southeast Asia opened the DoubleTree by Hilton in Vientiane being its first foray into Laos. 

The Outdoor Advertising Market in Laos

The Growing Demand for Out-of-Home (OOH) Advertising

Outdoor advertising in Laos is rapidly expanding, particularly in high-traffic areas such as airports, shopping malls, hotels, and tourist hotspots. Businesses looking to establish brand presence are leveraging billboards, transit ads, and digital out-of-home (DOOH) advertising to reach consumers.

Vientiane and Luang Prabang: Key Locations for Advertising

• Vientiane: As the business and political hub, Vientiane is home to key OOH advertising locations, including billboards along major roads, LED screens in commercial areas, and transit advertising on buses and tuk-tuks. 

Chanthabouly (or Chanthabuly) District is the central district of Vientiane, making it a prime area for business, government offices, and commercial activities. It includes key roads like Lane Xang Avenue and Samsenthai Road, which are major thoroughfares with high traffic and strong visibility for OOH advertising.

It is also home to important landmarks such as Talat Sao Mall (Morning Market), Vientiane Center, and Chao Anouvong Park, where the famous night market is located. Given its central location and commercial significance, Chanthabuly is a strategic area for billboards, LED screens, and transit advertising.