1. Basic situation

Lao People's Democratic Republic (Laos for short) is located in Southeast Asia. It is the only landlocked country in the northern part of the Indochina Peninsula. It is adjacent to China to the north, Cambodia to the south, Vietnam to the east, Myanmar to the northwest, and Thailand to the southwest. The land area is 237,000 square kilometers. According to statistics from the International Monetary Fund, in 2024, Laos 'GDP will be US$14.9 billion, and per capita GDP will be US$2066. China is Laos 'second largest trading partner and largest exporter. According to China Customs statistics, in 2024, the import and export trade volume between China and Laos will be US$8.23 billion, a year-on-year increase of 15.9%, and the bilateral trade volume has reached a record high. Among them, China's exports to Laos were US$3.68 billion, a year-on-year increase of 9.8%; China's imports from Laos were US$4.56 billion, a year-on-year increase of 21.4%. China's trade deficit with Laos was US$880 million.

Laos has mineral resources such as tin, lead, potassium salt, copper, iron, gold, gypsum, coal, and rare earths. So far, gold, copper, coal, clavicles, etc. have been mined; there are abundant water conservancy resources; in 2019, the forest area was approximately 19.4 million hectares, and the national forest coverage rate was approximately 70%, producing precious woods such as teak and pear.

2. Automobile market situation

Laos is a left-hand car country, with approximately 20 cars per 1,000 people. According to Focus2Move data, in 2024, Laos 'automobile market sales will increase by 9.7%. At the same time, its electric vehicle market will grow rapidly, with an increase of approximately 80.1%. In terms of brands, Toyota's sales fell by 2.2%, but still ranked first; BYD overtook Hyundai Motor with an increase of 85.6%, ranking second; Hyundai Motor grew by 3.9%, but fell to third place.

In terms of automobile imports, according to statistics from the Lao Automobile Manufacturers Association, the Lao electric vehicle market is growing rapidly as consumers 'interest in electric vehicles surges. In 2023, Laos imported 2101 electric vehicles, accounting for 25.1% of new car registrations. As of October 2024, the number of imported electric vehicles has increased to 4437. The Lao used car market is dominated by Japanese brands, including Honda, Mitsubishi and Mazda; although China brands such as Dongfeng, Wuling, Shaanxi Automobile, Foton, Lifan, Geely, Jianghuai, Chery and BYD have entered the Lao market, their market share is not high.

On February 11, 2025, the General Office of the Prime Minister's Office of Laos issued a notice agreeing to allow the Ministry of Industry and Trade to coordinate with relevant departments to continue to implement measures to reduce the import of land vehicles in 2025. Suspension of the import of high-value light vehicles (jeeps, sedans, trucks, pickup trucks) and guidelines on measures to reduce the import of land vehicles in 2025. First, continue to restrict the import of off-road vehicles, cars, pickup trucks and trucks with a CIF tax declaration value of US$50,000 and above. Second, land vehicle importers who are not authorized to be official dealers are not allowed to import vehicles (using fuel or other alternative energy sources) of brands with official dealers in Laos. The third is to ban the import of used trucks and heavy machinery that already have dealers in Laos, except temporarily imported or used for priority projects approved by the government. Fourth, the import and sales of land vehicles must be settled through the banking system, and importing companies and domestic sales companies must open accounts with commercial banks operating in Laos. Fifth, imported light vehicles worth US$50,000 or more that serve the work of governments, embassies or international organizations can be imported after review and approval by relevant Lao government departments. Sixth, if you need to import light vehicles with a value of more than US$50,000 or without an official dealer in Laos, you must purchase import rights from the government during the implementation period of this notice. Seventh, the Ministry of Industry and Trade coordinates relevant departments, the Lao Automobile Industry Association, import companies, etc. to study and determine the value of import rights and determine the use management goals and regulations for the income from the sale of import rights. Eighth, the 116 Committee is instructed to supervise, inspect and evaluate the implementation of this notice and report to the government.

3. Policies and regulations on used car import

Before July 9, 2024, Laos adopts an automatic licensing system for vehicle imports. Importers and exporters can obtain licenses from the Ministry of Import and Export (DIMEX). Automatic licensing is mainly used to collect statistical information.

On July 5, 2024, the Ministry of Industry and Trade of Laos issued a notice on suspending the application for business licenses for vehicle import and export business, and suspending the application for business licenses for vehicle import and export business from July 9, 2024 to December 31, 2024. The policy clearly states that the suspension only applies to new license applications and does not involve modifications or updates of existing licenses.

Source: "China's Used Car Export Country Guide2024"

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