I have reading The Phongsavanh Group that own the only Laos privately own bank!
http://www.phongsavanhbank.com/background.php

I am thinking why don't we start our business owning a new bank in Laos! Since they only need deposited the minimum capital reserve requirement of well in advance of the Bank of Lao PDR. The Bank has a registered capital of I am sure we can raise that kind of money own self (Laos who live aboard) What do think? It's a business idea feel free to express. Why it's not good or It's a good ,but!

She right, a bird in the hand is worth two in the bush. I'll tell you a true story about a so called rich family that I knew in Vancouver Canada who went to Thailand with their fortune and came back broke within a year. This Laos/Thai family of 4 had some connections to make money in the drug trade in Vancouver. After a few years of doing "business", they decided to sell their house and go to Thailand and start a business with their family there. I'm guessing they had about 1 million cdn with them at the start. After a year, we saw them come back with sad faces like someone had died in their family. They went back to living in a 2 bedroom apartment in the bad side of town and lived quietly ever after. They went to do business with their own blood family and got eaten alive. Doing business in a foreign country is risky business to begin with. Not being able to trust even family, now that tells you something. Money is thicker than blood over there so you better have deep pockets.

What's the cost of borrowing in Laos?  Like what is the interest rate for a commercial loan? Is there such a thing as a mortgage loan for a HOME?

Someone told me that most Laos people buy stuff CASH! 30K, 40K, 50K CAR =  CASH!

Most people are buying cash! but the bank is making money from the fee and the commercial borrowing. some with project that involve with foreign aid.(The Aid organiser don't trust Laos Government to manage the Money,While sitting here. we can invest or lent to someone that would need it) I think won't be long Mortgage type of product would be on offer.

>> I like you enthusiasm and your benevolent intentions of trying to help bring $$ to local Laotians to establish or build businesses.  There are so MANY uncertainties or RISKS involved.

1 - Government rules and regulations to protect banks. Do you get tax INCENTIVES from governments?

2 - Market and Currency RISKS. Volatile times in BANKING IN THE WHOLE WORLD.

3 - Borrowers NOT HAVING SUFFICIENT ASSETS to securitize the loans. I DON'T THINK YOU WANT TO LOAN OUT $$ FOR NOTHING. If the loans were to default, how QUICKLY can you SELL that collateral and GET YOUR $$ BACK?

4 - OVERALL lack of knowledge and understanding about credit, lending and securitization by local Laotians.  Most borrowing in Laos is by TRUST and WORD OF MOUTH!

5 - Is there a BIG enough market for you to MAKE MONEY? WILL IT BE PROFITABLE ENOUGH? Do the RISKS outweigh REWARDS?

6 - How/Where would you get a CREDIT CHECK on BORROWERS? You need to know their history...you can't just lend out $$ to anybody. Again, this goes back to the question of TRUST?  At least in US and I'm sure in Aussie as well, there are BACKGROUND and CREDIT CHECKS you can do on borrowers!

7 - LASTLY - WHAT IS YOUR LEVEL OF EXPERIENCE, KNOWLEDGE and TRAINING in BANKING, LENDING, MANAGING a BUSINESS?

Top 2 reasons why new companies FAIL:

# 1 - LACK OF CAPITAL. The business does NOT have enough $$ to operate, pay employees, supplies, etc. Companies need a LOT of reserve capital to keep business running b/c the first 6 months..will NOT be PROFITABLE.

# 2 - Business owners LACK of KNOWLEDGE, TRAINING, EXPERIENCE and DECISION MAKING

These are you some examples. If I missed some...please feel free to ADD. I typed this up in 10 minutes....

My suggestion to you...keep you $ 1 million (AUD)..invest in TAX FREE municipal bonds..SAFER and GOOD RETURNS!

Qualified employees are plentiful, otherwise there wouldn't be any banks operating in Laos at the moment. Local Laotians are smarter than you think.

When thinking of starting a business in Laos, you need to understand that Lao law favours the locals and protects us. It's easier for foreigners to get into trouble so understanding the law is first things first.

MY RESPONSE LISTS SOME OF THE FUNDAMENTAL THINGS PEOPLE SHOULD CONSIDER BEFORE JUMPING IN TO OPEN A BUSINESS. 

IT WAS NOT INTENDED TO INSULT OR OFFEND ANYONE'S EDUCATION OR SKILLS! SO PLEASE DON'T TAKE IT AS SUCH.

THINGS TO RESEARCH...THAT'S ALL I'M SAYING... THE MORE RESEARCH YOU DO...THE MORE PREPARED YOU WILL BE TO RUN A SUCCESSFUL BUSINESS.

Good Luck with your business!

Here's link to the most respected law firm in Laos.

http://laolaws.com/index.html