Okay guys,

I am wondering how much to start a small business in Laos.  What do you think of $10,000.00?  What can I do with $10,000?  I like an honest answers okay.  Please don't come in here give some bullshit answers.  We are all adults.  Thanks in advance.


Regards,

LaoguySoCal

That's alot of money.

You can start a small business with $200 in Laos, but that's for small profit.

With $10,000, you can own a small restaurant or clothing shop.

Thanks....... I am going to look in to this because I will try to be there for SEA games.  I am thinking running a service business, such as delivery services, oil changes station, or contracting services.  Just a thought.  I know they have these services already in Laos, but it is all about competition and who will give better services.  I am currently try to get my MBA.  I have BS in accounting.  Business in USA is to tough because so many of them and you have to have a lot of capital (money). What about taxes? licensing? and ownership? I know Laos is one of the worst corruption country out there.  Of course every where is corrupted.  Thanks again.

I am thinking of making a fish farm and selling the fish to market every 4 months when they mature. Need some land and dig out the hole and fill it with cement or something to trap the water in. Also want to build a green house to grow crops to sell, especially during the rainy season when no one else can grow any.

What type of business are you thinking about, a get rich quick scheme? My friend had an arcade/internet cafe there, not sure how well it did. How about you open a western style restaurant there.

Thanks Buk Hoo Kee,

Good idea Buk Hoo Kee. I like that idea. Green house is another good idea.  Don't talk to me about a get rich quick scheme.  I have tried that so many times during my younger years.  I have tried to sell all kind of products before.  Did not work for me.  I am honest man and the only thing you can run a success business is to be honest.  I have an education. I am not one of those people that just wanted to do business.  Business requires not only money, but planning, law, licensing, location, products, and services. Oh, yeah western style restaurant.  I could start a franchise in Laos.  When I was a student in college I used to work for Burger Kings and McDonalds. Not a bad idea.  Keep in touch okay Buk Hoo Kee.

honestly, if you're living with Western standards and a bachelors degree, 10k is not going to get you far at all in investing in Laos.

Firstly, have you seen property prices in Vientiane? but it's not like you could buy it anyway since foreigners are barred from buying land.

as for a fish farm, you can't operating a profitable business from a few ponds in the back yard, but rather acres of tanks. Not to mention pumps, plumbing, maintenance and sustaining costs of a fish farm, versus catching fish in the hundreds of rivers flowing through Laos. Same with a green house.

In the 1900's the American government gave freed slaves 40 acres of land because that was the amount of land considered reasonable to sustain a family. And keyword is sustain, not prosper. So imagine enclosing a large area like that, and only have a small, brief, and competitive market for.

Most foreigners buy land under the name of someone in Laos who they can trust, usually a relative.

Properties in Vientiane especially close to the city is very expensive to buy. Before buying land in Laos, you need to be careful and do some research because the Government may need your area in the future. If this is the case, you will be forced to move out and they will give you new land elsewhere but the value of your new land will be lower than the land you previously owned.

We aren't talking about the 1900's anymore. My aunt has a fish farm in the back of her house, nothing close to 40 acres and they live off of that and then some and it's just a small pond. You can't compare doing business in the US and Laos, they are totally different, not to mention this is the year 2009. I don't own 40 acres of land and yet I'm doing quite well for myself. I know a guy who gave his brother in Laos 10k to buy a truck and start a trucking business importing and exporting stuff between the neighboring countries around Laos. The brother gave back the 10k after a year and is now rich. He sold out his own brother that was supposed to be his partner and instead told his brother, "here is the money back that you LENT me".
I have already invested in Laos, land and all but you got to know how to do it the Laos way, not the foreigner mindset way. If you think of fish farms and greenhouses like they have in the west, then you aren't going to suceed in Laos. When in Rome, do like the Romans.

interesting topic LaoguySoCal,

I'll be headed back to SE Asia soon again myself. I've thought about starting a business in Lao also, but I've opted to do some volunteer work, and hopefully show enough skills to get some work. After the collapse of the markets and my own business here in the US, I'm looking forward to living a simpler, but more challenging lifestyle for a foreigner.

Best of Luck to everyone.

I hope you have success in your new endeavours in Laos. Volunteer work is a good stepping-stone to employment.

Buk Hoo Kee wrote on 4^th Aug, 2009 at 10:11pm:

We aren't talking about the 1900's anymore. My aunt has a fish farm in the back of her house, nothing close to 40 acres and they live off of that and then some and it's just a small pond. You can't compare doing business in the US and Laos, they are totally different, not to mention this is the year 2009. I don't own 40 acres of land and yet I'm doing quite well for myself. I know a guy who gave his brother in Laos 10k to buy a truck and start a trucking business importing and exporting stuff between the neighboring countries around Laos. The brother gave back the 10k after a year and is now rich. He sold out his own brother that was supposed to be his partner and instead told his brother, "here is the money back that you LENT me". I have already invested in Laos, land and all but you got to know how to do it the Laos way, not the foreigner mindset way. If you think of fish farms and greenhouses like they have in the west, then you aren't going to suceed in Laos. When in Rome, do like the Romans.

Exactly, it is 2009, and the agricultural industries are becoming more and more consolidated, making it more difficult for small investors to get a start.

Additionally, by now, or very soon, most of the food needs will be fulfilled, either by companies or individuals who have already had a head start. I'm not saying you can't make it, but for such an endeavor to actually be actually worth while, or worth my while rather, I would expect a larger return on investment. There are bigger fish that you can fry in Laos, but hey, if 10K is all you got to lose, then go for it.

Some of the things that I can think off the top of my head that Laos could benefit from are spray on drywall/insulation installers, graphic design and printing or copy center, or pretty much anything related to the automotive or construction industries.

Thanks guys for your input.  

How about $300,000? Can I build my own business from the ground up to Lao PDR specifications and building codes?


Admin Saovaluck wrote on 17^th May, 2009 at 2:27am:

That's alot of money. You can start a small business with $200 in Laos, but that's for small profit. With $10,000, you can own a small restaurant or clothing shop.

You can do a lot in Laos with $300k. Money talk.
::)

Admin Saovaluck wrote on 17^th May, 2009 at 2:27am:

That's alot of money. You can start a small business with $200 in Laos, but that's for small profit. With $10,000, you can own a small restaurant or clothing shop.

What 'business' can be started from scratch with $200? I'll be on the first plane tomorrow! :-*

I want to open dollars store in Laos. Where everything and anything you need cost $1. They have franchise in the US. You buy stuff from China and sell it in dollars store.
;)

Brother, brother, brother.............what do you think all those 'puak Jeen' are doing in our beloved Laos right now? You really do make laugh some times! ;D
You might want to brainstorm a new business plan right away.

I was thinking of a stand alone infrastructure on a 2 acre lot in central (downtown) Vientiane where the local communities are located and will $300k be enough.  With that idea in mind, it will cost $1.5m to build something like that in Houston.  Land price should be much more expensive in downtown.  Where is downtown Vientiane anyway?  To me Vientiane looked like a suburb right now.


llX wrote on 24^th Mar, 2011 at 5:18am:

You can do a lot in Laos with $300k. Money talk. ::)

Larb Dip wrote on 24^th Mar, 2011 at 5:43am:

Admin Saovaluck wrote on 17th May, 2009 at 2:27am: That's alot of money. You can start a small business with $200 in Laos, but that's for small profit. With $10,000, you can own a small restaurant or clothing shop. What 'business' can be started from scratch with $200? I'll be on the first plane tomorrow! :-*

I spent not too much more than $500 on building a Lao sauna business for my wife.  She opened it this month, and it's proving very popular with locals since there's nothing like it around here.

Give Jek, Chinese some competition. You have to do what you like and like what you do. We can compete with them.
:D


Larb Dip wrote on 24^th Mar, 2011 at 5:59am:

Brother, brother, brother.............what do you think all those 'puak Jeen' are doing in our beloved Laos right now? You really do make laugh some times! ;D You might want to brainstorm a new business plan right away.

Actually that is a very good idea because manufactured products from China can come straight to Laos.  So transportation cost is much smaller comparing to products shipped from China to the US.  You can probably call it 'Fifty Cent' store and woud still be profitable.


llX wrote on 24^th Mar, 2011 at 5:56am:

I want to open dollars store in Laos. Where everything and anything you need cost $1. They have franchise in the US. You buy stuff from China and sell it in dollars store. ;)

llX wrote on 25^th Mar, 2011 at 12:03am:

Give Jek, Chinese some competition. You have to do what you like and like what you do. We can compete with them. :D Larb Dip wrote on 24th Mar, 2011 at 5:59am: Brother, brother, brother.............what do you think all those 'puak Jeen' are doing in our beloved Laos right now? You really do make laugh some times! ;D You might want to brainstorm a new business plan right away.

You're damn right! We don't just need to compete, but rival with success. We don't want them running our economy as a Chinese monopoly board. Lao need to be represented in every field. Even more so where money is involved, especially in LAOS!

wrote on 24^th Mar, 2011 at 10:05pm:

Larb Dip wrote on 24th Mar, 2011 at 5:43am: Admin Saovaluck wrote on 17th May, 2009 at 2:27am: That's alot of money. You can start a small business with $200 in Laos, but that's for small profit. With $10,000, you can own a small restaurant or clothing shop. What 'business' can be started from scratch with $200? I'll be on the first plane tomorrow! :-* I spent not too much more than $500 on building a Lao sauna business for my wife.  She opened it this month, and it's proving very popular with locals since there's nothing like it around here.

This sounds like a sauna/BEAUTY SALON.

How much does your wife make?

What can I do with US$50,000?
I have ambitions on being a pioneer and am not interested in following the latest trends. What 'businesses' haven't been tapped into yet?

We can make Jek and keow run for their money. Whatever they can do Lao can do. One thing is Jek and keow can get loan and supported from their government to started business in other country.
8-)


Larb Dip wrote on 25^th Mar, 2011 at 5:39am:

llX wrote on 25th Mar, 2011 at 12:03am: Give Jek, Chinese some competition. You have to do what you like and like what you do. We can compete with them. :D Larb Dip wrote on 24th Mar, 2011 at 5:59am: Brother, brother, brother.............what do you think all those 'puak Jeen' are doing in our beloved Laos right now? You really do make laugh some times! ;D You might want to brainstorm a new business plan right away. You're damn right! We don't just need to compete, but rival with success. We don't want them running our economy as a Chinese monopoly board. Lao need to be represented in every field. Even more so where money is involved, especially in LAOS!

Since they ('puak jeen/Gaauw') already have a head start, I think now is the perfect time time to rush in dual citizenship. We can get loans too. I'm pretty sure the banks don't mind where their money is going. All they care about is being paid back in full, WITH interest. This is what we need: Laos being owned by Lao!!! and not 'puak jeen/Gaauw!!! >:(

Lao can do well if there an opportunity. That's why Lao oversea are doing good in jobs and education because they had more opportunity.
8-) ::)

I went back last year again and talked to my relatives. They said forget it if you want to open a business in Laos unless you have connection. I said, what connection? They said, in order to have your business stay long and profitable you have to pay under table, you have to know people working for the government and sort of thing.  You know it is all about who you know, not what you know.  They told me just work in USA and retired in Laos that way you have stable income from your retirement.  I hope I can see my retirement money by that time. LOLZ. $10,000 not going to work for me. Last year I just blew almost $5000 just for visiting.  Unbelievable!

Not good under the table money and bribery. Thats the problem with one party system corruption. "Absolute power corrupt."
:-* :-[

Larb Dip wrote on 25^th Mar, 2011 at 5:45am:

This sounds like a sauna/BEAUTY SALON. How much does your wife make? What can I do with US$50,000? I have ambitions on being a pioneer and am not interested in following the latest trends. What 'businesses' haven't been tapped into yet?

No, it's just a sauna at the moment, although my guess is it'll include traditional Lao massage in the future.  I included that in the activities I developed for our resort guests (www.rivertimelaos) and it is very popular with foreign guests.  I have now sold the resort and am semi-retired.

The sauna is really just a hobby for my wife and looks like it'll be generating a profit of $600 to $1,000 a month.  My wife charges 10,000 kip ($1.25) per person per hour in the sauna.

Interesting that you would like to be a pioneer.  With $10,000 seed money you could do a lot here, but remember that rent/land is a big expense and that land prices and rent in Vientiane are very high now and almost at an international level.  Outside Vientiane, it's still quite cheap, but getting more expensive all the time.

As to what kind of business you could do, that depends on your talent and what you are interested in (besides the color of Administrator's underwear).

All this talk of corruption and other kinds of sleaze is unrealistically negative.  I was able to handle the business set up and running process while retaining a good level of integrity despite the difficulties.  Anyone with a reasonable level of intelligence, fortitude and perseverance should be able to do the same.

wrote on 25^th Mar, 2011 at 4:54pm:

Larb Dip wrote on 25th Mar, 2011 at 5:45am: This sounds like a sauna/BEAUTY SALON. How much does your wife make? What can I do with US$50,000? I have ambitions on being a pioneer and am not interested in following the latest trends. What 'businesses' haven't been tapped into yet? No, it's just a sauna at the moment, although my guess is it'll include traditional Lao massage in the future.  I included that in the activities I developed for our resort guests (www.rivertimelaos.com) and it is very popular with foreign guests.  I have now sold our share in the resort and am semi-retired. The sauna is really just a hobby for my wife and looks like it'll be generating a profit of $600 to $1,000 a month.  My wife charges 10,000 kip ($1.25) per person per hour in the sauna. Interesting that you would like to be a pioneer.  With $50,000 seed money you could do a lot here, but remember that rent/land is a big expense and that land prices and rent in Vientiane are very high now and almost at an international level.  Outside Vientiane, it's still quite cheap, but getting more expensive all the time. As to what kind of business you could do, that depends on your talent and what you are interested in (besides the color of Administrator's underwear). All this talk of corruption and other kinds of sleaze is unrealistically negative.  I was able to handle the business set up and running process while retaining a good level of integrity despite the difficulties.  Anyone with a reasonable level of intelligence, fortitude and perseverance should be able to do the same.

Thank for sharing your experience. Many of Lao expats dream of opening business and retire in Laos. Making $600-$1000 for small business in Laos is a good money.
8-) :)


wrote on 25^th Mar, 2011 at 4:54pm:

Larb Dip wrote on 25th Mar, 2011 at 5:45am: This sounds like a sauna/BEAUTY SALON. How much does your wife make? What can I do with US$50,000? I have ambitions on being a pioneer and am not interested in following the latest trends. What 'businesses' haven't been tapped into yet? No, it's just a sauna at the moment, although my guess is it'll include traditional Lao massage in the future.  I included that in the activities I developed for our resort guests (www.rivertimelaos) and it is very popular with foreign guests.  I have now sold the resort and am semi-retired. The sauna is really just a hobby for my wife and looks like it'll be generating a profit of $600 to $1,000 a month.  My wife charges 10,000 kip ($1.25) per person per hour in the sauna. Interesting that you would like to be a pioneer.  With $10,000 seed money you could do a lot here, but remember that rent/land is a big expense and that land prices and rent in Vientiane are very high now and almost at an international level.  Outside Vientiane, it's still quite cheap, but getting more expensive all the time. As to what kind of business you could do, that depends on your talent and what you are interested in (besides the color of Administrator's underwear). All this talk of corruption and other kinds of sleaze is unrealistically negative.  I was able to handle the business set up and running process while retaining a good level of integrity despite the difficulties.  Anyone with a reasonable level of intelligence, fortitude and perseverance should be able to do the same.

Would you happen to know why/who business owners have to 'pay under table'?  Pay the government? As in high taxation? There are laws established by the government already and all laws are being observe by the United Nations.  If Laos and Lao gov't do not follow the UN, then the UN will take the country out of the group.  

Most likely an Urban Legend?


LaoguySoCal wrote on 25^th Mar, 2011 at 7:12am:

I went back last year again and talked to my relatives. They said forget it if you want to open a business in Laos unless you have connection. I said, what connection? They said, in order to have your business stay long and profitable you have to pay under table, you have to know people working for the government and sort of thing.  You know it is all about who you know, not what you know.  They told me just work in USA and retired in Laos that way you have stable income from your retirement.  I hope I can see my retirement money by that time. LOLZ. $10,000 not going to work for me. Last year I just blew almost $5000 just for visiting.  Unbelievable!

This does sound pretty good. I'm still young, but growing old while drinking beer Lao by the Mekong sounds pretty nice.

Problem is being a farang I can't own anything, and I don't particularly want to get married right now.

How does it work for Lao-Americans? Wouldn't you have to give up your US citizenship? Or do they allow dual citizenship for you guys now?

Sadly Laos rank pretty high on corruption. Government salary, public worker are so low. They has make extra cash on the side anywhere they can to survive. Corruption is everywhere but worst in one party system. Even in USA we heard of corruption all the time, but there is justice, rule of law and balance of power. Nobody is above the law here. Even politicians, millionaire, billionaire get sent to jail for crimes, but in Asia money talk and with money you can get around the system . "Absolute power corrupt."
8-) :-?


PEACE wrote on 25^th Mar, 2011 at 6:17pm:

Would you happen to know why/who business owners have to 'pay under table'?  Pay the government? As in high taxation? There are laws established by the government already and all laws are being observe by the United Nations.  If Laos and Lao gov't do not follow the UN, then the UN will take the country out of the group.   Most likely an Urban Legend? LaoguySoCal wrote on 25th Mar, 2011 at 7:12am: I went back last year again and talked to my relatives. They said forget it if you want to open a business in Laos unless you have connection. I said, what connection? They said, in order to have your business stay long and profitable you have to pay under table, you have to know people working for the government and sort of thing.  You know it is all about who you know, not what you know.  They told me just work in USA and retired in Laos that way you have stable income from your retirement.  I hope I can see my retirement money by that time. LOLZ. $10,000 not going to work for me. Last year I just blew almost $5000 just for visiting.  Unbelievable!

JSEA wrote on 25^th Mar, 2011 at 6:20pm:

This does sound pretty good. I'm still young, but growing old while drinking beer Lao by the Mekong sounds pretty nice. Problem is being a farang I can't own anything, and I don't particularly want to get married right now. How does it work for Lao-Americans? Wouldn't you have to give up your US citizenship? Or do they allow dual citizenship for you guys now?

I don't think Laos have dual citizenship yet. I hope they do in the future. I also want Laos citizenship. I love USA and Laos but I'll not give up my US citizens.
8-)

JSEA - I am regretting of having a US citizen status right now.  Born in Laos and naturalized to US citizen 10 years ago. I am hoping for dual citizenship in the near future.  I love the great USA but Laos is home for me.


JSEA wrote on 25^th Mar, 2011 at 6:20pm:

This does sound pretty good. I'm still young, but growing old while drinking beer Lao by the Mekong sounds pretty nice. Problem is being a farang I can't own anything, and I don't particularly want to get married right now. How does it work for Lao-Americans? Wouldn't you have to give up your US citizenship? Or do they allow dual citizenship for you guys now?

You still can live and retire in Laos with US citizens. Its nice when you work hard, retire and get pension, social security.
8-)


PEACE wrote on 26^th Mar, 2011 at 2:58am:

JSEA - I am regretting of having a US citizen status right now.  Born in Laos and naturalized to US citizen 10 years ago. I am hoping for dual citizenship in the near future.  I love the great USA but Laos is home for me. JSEA wrote on 25th Mar, 2011 at 6:20pm: This does sound pretty good. I'm still young, but growing old while drinking beer Lao by the Mekong sounds pretty nice. Problem is being a farang I can't own anything, and I don't particularly want to get married right now. How does it work for Lao-Americans? Wouldn't you have to give up your US citizenship? Or do they allow dual citizenship for you guys now?

Don't you have to pay visa fees if you don't have Lao citizenship?

Larb Dip wrote on 26^th Mar, 2011 at 4:38am:

Don't you have to pay visa fees if you don't have Lao citizenship?

Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.  
:o

Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.  
:o[/quote]

What does this 401k mean?

Larb Dip wrote on 26^th Mar, 2011 at 4:57am:

Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.   :o What does this 401k mean?

A 401k is a retirement plan allowing employees to contribute a certain percentage of wages earned into a tax-deferred account to save and invest for retirement. Some employers offer participants matching funds as part of a benefits package or company incentive.

Thank for explanation William.
:)

Company Retirement account saving. You can contribute automatically from your paycheck. Don't they have it in New Zealand.
:o

Larb Dip wrote on 26^th Mar, 2011 at 4:57am:

Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.   :o

What does this 401k mean?[/quote]

llX wrote on 26^th Mar, 2011 at 7:51am:

Company Retirement account saving. You can contribute automatically from your paycheck. Don't they have it in New Zealand. :o Larb Dip wrote on 26th Mar, 2011 at 4:57am: Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.   :o What does this 401k mean?

[/quote]

Yes they do. It's called Kiwisaver. You can contribute up to 2/4/8% gross of your wages/salary. The company that employs you is obliged to match the amount. Tha government also gives you a tax credit of up to $20/week. That's $1024/year. Then it is up to you how you want to invest all your money. Some companies also have other superannuation schemes in conjunction with the Kiwisaver.

401K is the money that your company put it aside for you by investing that money for you on stocks market and bonds. It depends on how much percentage you want to put in your 401K. You can cash out your 401K, but there is penalty for cashing out before you reach retirement age of 65 or younger. I believe it depends on how you sign up.  I believe minimum returns on this is about 7% to 12% per year. It depends on how stocks market fluctuates each year or just how the stocks market doing. So far stocks market is doing fine right now.   ::)

Yes some companies do match your contribution up to 7% depends on how long you have been with the company. Most big companies will match your contribution, but not 100% unless your contribution only 3% or 5% percents from your paychecks.   ;)

How much can one end up with in the 401K scheme, assuming that one invest for 40 years?

What about the government, do they contribute too?

If you work for government, yes they do have 401K also. Again it depends on how much they want to match your contribution. I believe they match your contribution because they want to keep good employees in the company for long term period.

ONLY if you work for the government? What about everybody else? Do they miss out?

Well, if you invested 10% percents of your wages every year for 40 years you could ended up with a lot of money in your 401K. If you make $40,000 a year and 10% on 401K that is $4000 per year plus if you understand rule 72, your money will double up every some years I forgot how long, it has been awhile since I graduated. Lol.  You understand compound interests.   ;)

LaoguySoCal wrote on 26^th Mar, 2011 at 8:30am:

Well, if you invested 10% percents of your wages every year for 40 years you could ended up with a lot of money in your 401K. If you make $40,000 a year and 10% on 401K that is $4000 per year plus if you understand rule 72, your money will double up every some years I forgot how long, it has been awhile since I graduated. Lol.  You understand compound interests.   ;)

What is rule 72?

Everybody who has money to bank knows about compounding interest.

Private and government have 401K. Not just government... This is totally up to you to put your money in 401k or not.  You don't have to if you don't want to. But if someone matching your investment, you are not going to be stupid by not investing right?  ;D

Off course.

What is rule 72?

There you go! buddy
Rule 72
http://www.bean-d.com/finance/rule-of-72.php

It calculates how long before you double up your money. Just google it up lol

What can't you just tell me?

Don't YOU know?

Larb Dip wrote on 26^th Mar, 2011 at 8:18am:

How much can one end up with in the 401K scheme, assuming that one invest for 40 years?

Some company has 401k, some small company don't. Like Laoguysocal said. If you save 10% per check and make $40,000 a year. That $4,000+$2,000 company match. That $6,000 a year in 40 that's $240,000+interest if you do well on your investment.
:o

Same as 401k just different name. Retirement saving.
8-)


Larb Dip wrote on 26^th Mar, 2011 at 8:09am:

llX wrote on 26th Mar, 2011 at 7:51am: Company Retirement account saving. You can contribute automatically from your paycheck. Don't they have it in New Zealand. :o Larb Dip wrote on 26th Mar, 2011 at 4:57am: Yes I believe $30 a month. But someone who retire from the US with pension, 401k, and Social security can get at least $1,000 a month or more.   :o What does this 401k mean?

Yes they do. It's called Kiwisaver. You can contribute up to 2/4/8% gross of your wages/salary. The company that employs you is obliged to match the amount. Tha government also gives you a tax credit of up to $20/week. That's $1024/year. Then it is up to you how you want to invest all your money. Some companies also have other superannuation schemes in conjunction with the Kiwisaver.[/quote]