Note: This article is a direct interpretation of the ASEAN Digital Community 2045 – Lao PDR Chapter and does not reflect the editorial position of Internet in Laos. It aims to summarize the findings and policy insights presented in the original report for informational purposes only.
Laos is quietly going through a digital revolution. While the country still ranks low in ASEAN’s digital maturity index, a combination of government policy, private innovation, and youthful demographics is pushing Lao PDR forward—at least on paper.
But what does this mean for the average internet user or digital business in 2025?
Let’s break it down.
The Digital Economy Is Gaining Ground
According to recent data, the digital economy in Laos already contributes 3% of GDP, with projections reaching 10% by 2040. That’s a meaningful shift, and one that places digital activity on par with long-established sectors like finance and insurance.
The government has rolled out various services including:
- Online tax and utility payments
- e-Visa and e-Passport applications
- IP e-Filing
- Online business licensing in pilot zones
These services aren’t just theoretical—they’re live and accessible. For travelers and businesses alike, this signals an important shift in how government services are delivered.
Big Investment in Infrastructure—but Quality Still Lags
By the end of 2019, Laos had laid over 90,000 kilometers of fiber optic cable and built nearly 8,000 cellular base stations. 4G and 3G networks now cover 82% of the country’s districts. In early 2024, Lao Telecom officially launched 5G service, making Laos one of the few LDCs in the world with next-gen mobile connectivity.
So why is the internet still slow and expensive?
The infrastructure exists, but service quality remains inconsistent. A 2022 report ranked Laos 9th out of 10 ASEAN countries for digital access and affordability. Even more frustrating: in 2024, the government introduced a monthly cybersecurity maintenance fee for all internet users—a rare policy that many find controversial and opaque.
The People Are Ready. The System? Not Quite.
One of Laos’ biggest advantages is its people. Nearly 60% of the population is under 25, and digital habits—from mobile payments to TikTok marketing—are growing rapidly.
But the education system hasn’t caught up. Low digital literacy, especially in rural areas, holds many people back. In some parts of the country, up to 70% of five-year-olds lack access to early education. Primary school completion rates remain below ASEAN averages, and many children don’t speak Lao as their first language, complicating digital onboarding.
Too Many Rules, Not Enough Clarity
According to a the report from ERIA, despite several new digital laws (on e-commerce, data privacy, electronic transactions), the regulatory framework is fragmented and inconsistently enforced. It’s difficult for businesses to navigate licensing, and foreign investment in digital services remains limited.
This creates a paradox: the legal system is evolving, but confidence is still low—especially among startups, SMEs, and foreign companies considering Laos for digital ventures.
The Geopolitical Factor
The report also highlights something rarely discussed: Lao PDR’s heavy economic dependence on China could limit its access to Western-led digital initiatives. If geopolitical tensions escalate, Laos could find itself excluded from certain digital trade agreements or regional tech funding initiatives.
What This Means for You
If you’re an internet user in Laos, here’s what to expect in 2025:
- Better access: More villages are covered, and 5G is now available in major cities.
- More services online: From visa applications to water bills, expect faster public service interactions.
- Still pricey, still slow: Unless major reforms are made, expect high costs and patchy performance to continue.
- More apps, more risks: Digital life is expanding, but cybersecurity risks and data protection remain weak.