Future Best Places to Retire: Cambodia, Laos, Vietnam

Mother and child in Laos.

Although some Southeast Asian countries (like Thailand) have experienced rapid economic development and have been listed as best places to retire, others have proceeded more slowly. Cambodia, Laos and Vietnam are slowly entering the global economy and are likely to be among the best places to retire within the next decade or two. If you are someone who can live without a full range of modern amenities and infrastructure, these countries might already be one of the best places to retire for you.

Cambodia, Laos and Vietnam were once a federation of colonies known as French Indochina and part of France’s colonial empire. Wars of independence from French colonial control, that later evolved into a devastating war with the United States, followed by an aftermath of political upheaval has set development back for these former French colonies.

Today, those years of conflict are slowly becoming a distant memory and efforts are being undertaken to follow countries like Thailand and Malaysia in development efforts.

Southeast Asia Retirement: Physical Landscape

Cambodia, Laos and Vietnam all have tropical climates that is dominated by the monsoon. The monsoon is a seasonal shift of wind direction that brings a summer rainy season when winds move inland and a dry season when moving out to sea. Cambodia and Laos are generally protected from tropical storms, but Vietnam lies in the path of tropical storms and experiences typhoons part of the year.

The entire region is fairly mountainous, but is a geologically stable region and not prone to major volcanic or earthquake activity. Laos is landlocked, but Cambodia and Vietnam have a coastline that not only provides access to the sea, but areas that are quite amenable for the tourist industry.

Southeast Asia Retirement: Cultural Landscape

French Indochina once consisted of Vietnam (Cochin China, Tonkin, and Annam), Laos, and Cambodia (Khmer Republic). France obtained control over most of modern day Vietnam following the Franco-Chinese war in 1885. Indochina expanded to include all of modern Vietnam, Cambodia and Laos by 1893 with Hanoi as its capital.

In the 1940’s, Japan occupied Indochina and effectively seized control over the colony from France. Indochina was ‘ruled’ by Vichy France during the war but for all intents and purposes was under Japanese occupation. After Japan’s defeat, the Vietminh began a war of independence against the French. The ultimate conclusion of the French Indochina War was independence, but political separation of Vietnam.

The French colony of Indochina survived until 1954 with the defeat of the French. However, Vietnam was partitioned into two Vietnams which ultimately brought the United States into a long and drawn out Vietnam War. Following the end of the Vietnam conflict, Cambodia continued to experience a great deal of internal conflict it was not until recently that normal relations with the United States were established with these three Communist countries.

Today, the three countries remain among the less developed countries in the world. The per capita income for these countries are: $1,690 (Cambodia), $1,940 (Laos), and $2,550 (Vietnam). Contrast this to neighboring Thailand’s per capita income of $7,880 and it becomes clear how war, internal unrest, and isolation from the global economy has affected the region.

Southeast Asia Retirement: Cambodia

Today, Cambodia is what remains of a once powerful Khmer Empire that ruled much of Southeast Asia. The people of Cambodia are predominantly Buddhist and descendents of the Khmer people.

Angkor Wat is a popular tourist destination in Cambodia.

The country seems to be more stable under a democratic constitutional monarchy today and poised to establish its place within the global economy. Considering that during the post-Vietnam War era, the Khmer Rouge government devastated the country with its anti-western philosophy, it is a wonder that Cambodia has managed to pick itself up and move forward at all.

Although the country remains primarily agricultural in nature, economic growth in recent years have been tied to the textile industry and tourism. Over a million arrivals come to Cambodia each year to enjoy Angkor Wat ruins of the former Khmer Empire and the country’s tropical beaches.

It is likely that economic growth will continue to accelerate into the future. Mineral, oil and gas mining in the waters off Cambodia’s coast are being explored and developed and may become a major source of revenue for the country in the next decade.

Although much modern infrastructure is lacking, the shift towards a more democratic government, the growth of the textile and tourist industries, and development of natural gas and petroleum production suggests that this is likely to change over the next decade or two. Cambodia is likely to become one of the best places to retire in Southeast Asia.

Southeast Asia Retirement: Laos

Laos became independent as a constitutional monarchy in 1954, but was dragged into the Vietnam War by North Vietnam that needed that country as a supply route to South Vietnam. This resulted in an American bombing campaign that dropped more explosives on this country than it dropped in all of World War II. Many of these bombs remain unexploded and represent a hazard to the people in the countryside. The monarchy was overthrown in 1975 and since then the country has remained a single party communist nation.

The country remains primarily agricultural and lacks modern infrastructure. The landlocked nature of the country also isolates Laos from access to the sea. Tourism is growing rapidly with over a million visitors entering the country each year. The country has mineral resources but for the most part they remain undeveloped. There is potential for development of hydroelectricity for export to surrounding countries like Thailand.

The people of Laos are ethnic Lao who make up about 70% of the country’s population. Like Cambodia, Buddhism is the predominant religion in the country.

Development of Laos can be expected to be slower than in Cambodia or Vietnam. The geography of the country makes infrastructure development difficult and costly. The kind of infrastructure that the average American expects is just not in place for most of the country. Nevertheless, as its neighbors continue to develop, Laos can be expected to be pulled into the economic growth although at a slower pace. Despite these challenges, Laos is likely to emerge as one of the best places to retire in another 20 years or so.

Southeast Asia Retirement: Vietnam

Victory for the Vietnamese has been bittersweet in its many wars for independence. It’s last major war with the United States resulted in the reunification of the country under communist control. Economic development following that war was modeled after Soviet and Chinese economic strategies and yielded only modest results.

Halong Bay is a popular tourist destination in Vietnam.

By the mid 1980’s reformers grew impatient with the lack of progress of the old Soviet economic model and began to implement newer economic strategies based on private ownership and free market reforms. Although still a communist nation, these reforms has helped the country move forward at a faster pace than Cambodia or Laos.

Today, Vietnam has one of the fastest growing economies in the world. Vietnam is primarily agricultural in nature, but manufacturing, information technology, and oil production are fueling this economic growth. Tourism is also beginning to become a significant part of the economy with well over 3 million visitors entering the country each year. The nation’s infrastructure is still somewhat lacking when compared to Thailand. However, the foundations are there for continued recovery and development of the country.

The solid economic foundation of the country suggests that development should continue into the foreseeable future. The influences of both France and the United States, although once seen as negatives, now helps open the door to tourism and trade. The large coastline, diverse geography, and relative low cost of living will make this one of the best places to retire in Southeast Asia within a decade.

(photos by: Gisela Aroyo, Trmesias, Miaowee)