Cost of living in Laos

The 2023 Mercer Cost of Living survey puts Vientiane at the 209th most expensive city out of 227. Regionally, the cost of living for expats in Laos is similar to or slightly less than in Thailand and more costly than in Myanmar, Cambodia and Vietnam, although this depends largely on lifestyle.

With 80 percent of Laotians living modestly as farmworkers, the typical expat lifestyle is comparatively lavish, and the scarcity of similar consumers will drive up the price of luxury imports and products. Globally, the cost of living for expats is similar to that of Egypt or India.

Laos is a landlocked and largely unindustrialised country, and imported and luxury products go for a premium. Although local produce and basic amenities are cheap, you may be surprised at the cost of internet access and of the kind of food and accommodation you are used to.

Cost of accommodation in Laos

Given the low population density in Laos, it's not surprising that the price of accommodation throughout the country is affordable compared to most of Laos's neighbours. That said, the price increases in popular destinations like Vientiane and Luang Prabang, especially in the city centres.

The quality of accommodation in Laos varies widely, and you should look for rental accommodation with a clear idea of what you want in terms of amenities and utilities. Alternatively, it may be a good idea to hire a real estate agent who is familiar with the local accommodation market and experienced at working with expats.

Cost of transport in Laos

Although rough roads generally make bus trips in Laos uncomfortable and lengthy, buses are the most widely used and most affordable mode of transport in Laos. Slow boats are also quite affordable but are not the fastest way to get around Laos, as their name suggests.

Less affordable are taxis and tuk-tuks, and costly domestic air travel for longer hauls. The new rail line presents a more affordable alternative to air travel, although tickets can be hard to come by on short notice.

Driving in Laos is not recommended for expats, as cars are costly and can open you up to a great deal of liability.

Cost of groceries in Laos

In Laos, basic grocery staples like fruit and vegetables, meat, fish and milk are widely accessible and largely inexpensive. Although these will cost substantially more than you are accustomed to, you can purchase imported Western goods at certain supermarkets.

Most locals will shop at markets to access good quality food at low prices, and you are encouraged to do the same. Buy fruit and vegetables at the local markets, and shop for dairy and meat staples at grocery stores.

Cost of entertainment and eating out in Laos

Thanks to Laos's stunning natural landscapes and beautiful culture, you will find plenty of affordable and free outdoor activities available. You can go hiking, cycling, rock climbing or swimming at a low cost, while it is also possible to explore the country's many temples, river viewpoints and elephant sanctuaries fairly cheaply. Art and music lovers can also purchase film theatre and concert tickets at reasonable prices. Gym and fitness club memberships are on the pricier side but will still be affordable if you're earning an expat salary.

Lao cuisine is influenced by Indian and Chinese food, and Laos is known for its trifecta of sticky rice, larb (a spicy meat salad) and green papaya salad. In Vientiane and Luang Prabang, a variety of upmarket French and European restaurants cater to the tourist population, although eating at these establishments can be pricey. If you're looking to eat out affordably, you could consider street food, but be aware that some varieties of larb call for raw meat or fish, which can be vectors for parasites.

Cost of education in Laos

Public education in Laos is free, but although literacy and education in Laos have steadily improved since the 1990s, the country has a long way to go to improve its access to and quality of education. Combined with the fact that the language of instruction is Lao, this makes it highly unlikely you'll want to enrol your children in a local school.

International schools in Vientiane present a more palatable offering but at high costs. If relocating for work, you should try to negotiate educational costs into your contract.

Cost of healthcare in Laos

The standard of local healthcare in Laos is considered inadequate by most expat standards. The government has plans to introduce universal healthcare in 2025, but the country's healthcare facilities are not at the standard most expats from Western countries may be used to. As such, private health insurance that offers medical evacuation to Thailand is essential.

You'll likely have your private health insurance costs covered by your employer. If not, the cost will vary depending on the level of coverage you choose, your health status and your lifestyle habits.