Uganda has signed an agreement establishing diplomatic relations with the Government of Laos.

 Adonia Ayebare, Ambassador and Permanent Representative of Uganda to the United Nations signed the agreement on behalf of Uganda while Ambassador Anouparb Vongnorkeo signed on behalf of Laos.

Ayebare thanked Ambassador Vongnorkeo and all the respective teams that put in effort to enable the agreement get signed. “This will strengthen our bilateral relations,” Ayebare said.

Like Uganda Laos is a landlocked country in Southeast Asia. At the heart of the Indochinese Peninsula, Laos is bordered by Myanmar and China to the northwest, Vietnam to the east, Cambodia to the southeast and Thailand to the west and southwest. Its capital and largest city is Vientiane.

The Lao economy depends on investment and trade with its neighbors, Thailand, Vietnam, and, especially in the north, China.

Laos is rich in mineral resources and imports petroleum and gas. Metallurgy is an important industry, and the government hopes to attract foreign investment to develop the substantial deposits of coal, gold, bauxite, tin, copper, and other valuable metals. The mining industry of Laos has received prominent attention with foreign direct investments.

This sector has made significant contributions to the economic condition of Laos. More than 540 mineral deposits of gold, copper, zinc, lead and other minerals have been identified, explored and mined.

In addition, the country's plentiful water resources and mountainous terrain enable it to produce and export large quantities of hydroelectric energy. Of the potential capacity of approximately 18,000 megawatts, around 8,000 megawatts have been committed for export to Thailand and Vietnam.

As of 2021, despite cheap hydropower available in the country, Laos continues to also rely on fossil fuels, coal in particular, in the domestic electricity production.

The tourism sector has grown rapidly creating jobs and earning foreign exchange. The European Council on Trade and Tourism awarded the country the "World Best Tourist Destination" designation for 2013 for architecture and history.

A French colony until 1953, the power struggle which ensued between royalists and the communist group Pathet Lao also saw the country caught up in the Vietnam War. Communist forces overthrew the monarchy in 1975, heralding years of isolation.

After the fall of the Soviet Union in the 1990s, Laos began opening up to the world. Economic reforms are helping the country get out of poverty and heavy dependence on foreign aid.

Most Laotians live in rural areas, with around 80% working in agriculture mostly growing rice. The state has made no secret of its huge hydropower ambitions and its desire to become the "battery" of Southeast Asia.

The government anticipates that by 2025 hydropower will become the country's biggest source of revenue. But neighbours Vietnam, Thailand and Cambodia have raised concerns about the environmental impact of its dam-building projects along the Mekong River.