The economy of Laos is so bad that the income from internet scams operating there is equivalent to 75% of their GDP:
The USIP estimates that 85,000 people are working in Laos’ scam industry, so that would make it approximately $10.8 billion, more than two-thirds of Laos’ formal GDP. [$14.1 billion]
Fraud is a full-fledged industry in Laos. The number of people involved is so high that basically everyone is either part of it or has family who is.
The single-party government is complicit:
Elsewhere in the region, Laos’ scam economy thrives under a one-party system that has long traded access and protection for investment. Lacking domestic industries and burdened by debt, the government has relied on concessionary and other deals that hand vast tracts of land and resources to foreign investors. This permissive environment has encouraged illicit economies to grow alongside formal ones, often under official protection.-
Many of the “communist” government officials are on the take. They accept bribes for direct protection or to just look the other way.
The clearest example is the Golden Triangle Special Economic Zone (GTSEZ), run by Chinese businessman Zhao Wei. […] where scams and trafficking operate openly under the protection of Lao authorities. Rather than confronting the problem, the state has absorbed it, relying on these rents to sustain political loyalty and foreign exchange inflows.
[…] In August 2024, Lao authorities issued an ultimatum to scam operators to dismantle hundreds of online fraud factories in the GTSEZ by August 25, in cooperation with Chinese authorities worried about the abuse of Chinese nationals. The zone has long been flagged for human trafficking, online fraud, and money laundering […] the “crackdown” functions more as stage management — demonstrating willingness to act while leaving the principal actors and structures intact. Following a period of raids and inspections in 2023 to 2024, scam operations continued, and in the last month there have once again been reports of raids in the zone.
This area is also where one of largest slavery/forced labor operations in the current world is conducted, which feeds into all of the other organized crime happening the region:
A key feature of these operations is their reliance on human trafficking and labor exploitation. Criminal organizations recruit workers from neighboring countries—including Indonesia, the Philippines, Vietnam, and Thailand—through fraudulent employment schemes. An estimated 305,000 individuals were unlawfully engaged in cyberfraud activities based in the Mekong region in 2023 (The Guardian, 2025). Victims are often promised legitimate jobs in tourism, customer service, hospitality, or technology sectors but are subsequently transported to scam compounds where they are forced to participate in online fraud and illegal gambling operations. These practices blur the line between cybercrime and modern slavery, creating a complex law enforcement and humanitarian challenge.
Basically, Laos and its neighbors have some of the worst economies and most corrupt governments in the world. Functionally, organized crime is so powerful that it either controls the government, or it simply is the government.
It’s not 75%. It might be above 20% though. Most news reports say as high as 40%. Keep in mind this is just measurable reported income that doesn’t include things like farming and cash sales which in rural Laos are probably the majority. Should be a nice place to visit.
Yeah I struggled with how to word that exactly to make it clear.
The economy of Laos is so bad that the income from internet scams operating there is equivalent to 75% of their GDP:
The value given for the scam market is $10.8 billion. The value given for Laos’ GDP is $14.1 billion - this value does not include the scam market, because normally you wouldn’t include crime as part of GDP.
So 10.8 / 14.1 ≈ 75%, so as I said the income from the scams is equivalent to 75% of their GDP (I was trying to be precise with the statement). And yes, if you were to add the crime income to the GDP, then yes the scam value is ~40% of the total. Crime income isn’t recognized internationally as part of GDP calculations though, so you won’t find any first-party studies reporting the numbers that way, only in secondary reporting.
Sorry if that wasn’t clear in my original post, and also if that explanation made it worse instead of better.
No matter how you look at it though, it is a huge chunk of the economy. Like if you’re considering it as 40% of the total, that means 2/5 of all economic activity in the country is fraud. That is massive. And that’s not even considering the human trafficking and everything else.
Laos is fucked up, but there are still great places to visit. Luang Prabang is a beautiful UNESCO listed town with many natural attractions. The coffee is great. A cruise down the Mekong was tempting.
Oh yeah, thats a country, forgot about that. Any hard-core Laos facts in the chat?
The economy of Laos is so bad that the income from internet scams operating there is equivalent to 75% of their GDP:
https://cambodiaexpatsonline.com/general-chatter/should-laos-and-cambodia-include-scam-industries-their-gdp-data-t59299.html
Fraud is a full-fledged industry in Laos. The number of people involved is so high that basically everyone is either part of it or has family who is.
The single-party government is complicit:
Many of the “communist” government officials are on the take. They accept bribes for direct protection or to just look the other way.
https://thediplomat.com/2025/11/cracking-southeast-asias-scam-economy/
This area is also where one of largest slavery/forced labor operations in the current world is conducted, which feeds into all of the other organized crime happening the region:
https://atlasinstitute.org/inside-the-mekong-cyberscam-corridor-myanmar-cambodia-laos/
Basically, Laos and its neighbors have some of the worst economies and most corrupt governments in the world. Functionally, organized crime is so powerful that it either controls the government, or it simply is the government.
Uh oh
There goes my vacation plans.
Wow there is the hard-core fact I was looking for… thats effed up.
It’s not 75%. It might be above 20% though. Most news reports say as high as 40%. Keep in mind this is just measurable reported income that doesn’t include things like farming and cash sales which in rural Laos are probably the majority. Should be a nice place to visit.
Yeah I struggled with how to word that exactly to make it clear.
The value given for the scam market is $10.8 billion. The value given for Laos’ GDP is $14.1 billion - this value does not include the scam market, because normally you wouldn’t include crime as part of GDP.
So 10.8 / 14.1 ≈ 75%, so as I said the income from the scams is equivalent to 75% of their GDP (I was trying to be precise with the statement). And yes, if you were to add the crime income to the GDP, then yes the scam value is ~40% of the total. Crime income isn’t recognized internationally as part of GDP calculations though, so you won’t find any first-party studies reporting the numbers that way, only in secondary reporting.
Sorry if that wasn’t clear in my original post, and also if that explanation made it worse instead of better.
No matter how you look at it though, it is a huge chunk of the economy. Like if you’re considering it as 40% of the total, that means 2/5 of all economic activity in the country is fraud. That is massive. And that’s not even considering the human trafficking and everything else.
Laos is fucked up, but there are still great places to visit. Luang Prabang is a beautiful UNESCO listed town with many natural attractions. The coffee is great. A cruise down the Mekong was tempting.