Abstract
Globalization has forced many firms to evaluate investment opportunities around the world
in order to acquire a competitive advantage. However, in the process of globalization, firms are
most likely to invest in those countries that can offer substantial values in the value chain. It
becomes essential not only to gauge a country’s economic status correctly, but also to compare
its relative competitiveness with that of other countries. Previous studies have tended to evaluate
national competitiveness from the perspective of developed countries; very little attention
has been given to the national competitiveness of developing countries. Until recently, international
organizations neither measured the national competitiveness of Laos nor provided a
benchmarking reference for Laos to adjust foreign economic investment policies. The purpose
of this study is to develop a measurement model and then to use it to evaluate the national
competitiveness of Laos from four categories: economic performance, technology development,
human resource, and management capability. The results indicate that the actual achievement
levels (hard data) and perceived achievement levels for almost all measurement items are lower
than those of Thailand. The relative achievement levels of the measurement items as shown in
this study could serve as benchmarking for Laos to verify her future economic development
scenario.
Keywords: Laos; National competitiveness; Economic performance; Technology development;
Management capability