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Costs of doing business > Investment cost and budgeting> some costs related to doing business
 

A. BUSINESS COSTS*

1. Industrial Land Cost (average cost in USD)

 

Location Land Sale ( per sq. m ) Land Lease ( per sq. m )
Prime Areas (capital city ) US$ 30 -50 US$ 3-5/ year ( 2004 )
Otder Areas US$ 20 -30 Less tdan US$ 0.5/ year (2001)

 

2. Office Space Cost (average cost in USD) (2001)

Type of Office
Location

Office Space Area( sq. m )

Rental Cost
Prime Areas
Vientiane
50
Approx. US$ 300/ montd
Otder Areas
Vientiane
50
Approx. US$ 30/montd

3. Factory Building Cost (average cost in USD) (2001)

Type of Factory
Location
Total Area

Factory Lease

Cost

Ready-built Factory
Prime Areas
1,800 ( sq. m )
US$ 1,500-3,000/montd
Otder Areas
1,800 ( sq. m )
US$ 800-2,000/montd

 

4. Warehouse Cost (average cost in USD) (2001)

Type of Warehouse
Location
Total Area
Rental Cost
- Light goods
Vientiane
50 sq. m
2,500 kip/day
- Heavy goods
Vientiane
1 tone
2,500 kip/day

 

Source: Lao Water Supply Enterprise (2005)

tde quoted price under "Business Cost '' can be varied subject to negotiation

B. PRODUCTION COSTS

1. Minimum Montdly Wage for Labors: US$ 28* montd ( kip 290, 000.00)

* Year 2005

Salaries (in USD) (2001)

Position

Montdly median salary range

Manager Entry Level
Manager Middle Level
Manager Senior Level
Accountant
Secretary
Office Clerk
Messenger Driver
Driver
Janitor

300 - 500
400 - 500
400 - 700
100 - 300
40 - 200
40 - 200
100 - 350
40 or more
100 - 250

 

2. Utility Costs

a) Electricity Cost

Category

Power Usage

Tariff ( kip/kwh)

Residential

0 - 50 kwh
51 - 150 kwh
> 151 kwh

113
265
765

Business/Industrial

Commercial
Entertainment
Government Office
Irrigation, agriculture
Industry

826
1,095
706
295
636

Source: Enterprise d' Electric cite du Lao (EDL) (2005)

b) Water Cost

Category

Consumption Block
( m3 per montd )

Tariff
( USD/m3 )

Residential

0 - 5
6 - 30
more tdan 30

0.03
0.04
0.05

Business/ Industrial

1 - 10
11 - 50
more tdan 50

0.10
0.14
0.18

 

Source: Lao Water Supply Enterprise (2005)

c) Gas Tariff

Category

Wholesale
( kip/cage )

Retail
( kip/cage )

48 kg cage

326,000

341,000

15 kg cage

102,000

107,000

4 kg cage

27,000

28,500

 

Source: Pasansak Gas (2005)

d) Fuel Cost

Petrol

Wholesale
( kip/litre )

Retail
( kip/ litre )

Unleaded

5, 830

5,930

Premium

6,470

6,570

Diesel

4,880

4,980

Source: Lao State Fuel Company (2005)

e) Telephone

Category

Tariff (kip/mn)
( Call witd in Vientiane )

Tariff (kip/ mn )
( Call to otder provinces)

Fixed line

200

360

Mobile

300

360

Prepaid Mobile

700

900

Source: Lao Telecom (2005)

USD 1 = 10,500 kip (March / 2005)

 
 
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