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Agriculture & Irrigation

·        Lao PDR has planned to accelerate the allocation of agricultural production areas across the country, particularly priority areas in the provinces along the China-Laos railway and expressway corridors, and provinces with untapped potentials.

·        During 2022, the share of agriculture in Laos' gross domestic product was 14.63 percent. The Government of Lao PDR has an agricultural development strategy for 2025 seeking a 2.5% agricultural sector growth, and pursuing to ensure nutrition, improve agricultural production, and secure access to domestic, regional, and international markets.

·        Different strategies are being set in place to achieve such goals such as strengthening the coordination between the agricultural and industrial sectors, zoning of agriculture land use for food production and industrialization, developing an irrigation, and post-harvest management infrastructure, among others.

·        Connective infrastructure is rapidly improving, as shown by the opening of the Laos-China Railway and the development of trade corridors with neighboring countries. This provides Laos with an opportunity to transform the country through infrastructure that fosters trade and integration. These trade linkages also represent an opportunity to develop high-value agricultural production and processing value chains by partnering with agro-processing firms along the economic corridors.

 

Health & Pharma

·        According to the World Health Organization (WHO), "Laos has made considerable progress towards achieving Millennium Development Goals (MDGs) 4, 5, 6, and 7 (Health MDGs scorecard for LMICs* in the Western Pacific Region, 2016). Health care is predominantly delivered by the public system through government-owned and operated health centers (HCs), According to Health Sector Reform Strategy (HSRS) 2013 – 2025 major focus areas are: 1. Human resources development, 2. Health financing, 3. Governance, organization, and management, 4. Equitable access to quality health services and 5. Health information systems and monitoring and evaluation

·        The recent rollout and implementation of the National Health Insurance (NHI) scheme is an essential component of the HSRS that has particular significance for health financing in Laos.

·        Lao PDR offers a significant opportunity for ayurvedic and herbal products. Apart from pharmaceuticals, medical and surgical, the Lao healthcare markets offer huge potential for the herbals and other traditional medicines. As the Lao government has recently announced its commitment for prioritizing the healthcare sector, the Indian generic players can easily cash in on the opportunity, as the demand for generic medicines is very high in the country.

 

Tea/Coffee

·        In 2023, the Tea market in Laos generated a revenue of US$79.8m.

·        It is projected to experience an annual growth rate of 4.77% (CAGR 2023-2028).

·        Taking into account the total population, the per person revenue in Laos is estimated to be US$10.52 in 2023.

·        By 2028, the volume of the Tea market is expected to reach 5.0m kg.

·        Furthermore, a volume growth of 1.3% is anticipated in 2024.

·        Consequently, the average volume per person in the Tea market is forecasted to be 0.61kg in 2023.

·        Laos, known for its rich tea-growing heritage, is experiencing a resurgence in traditional tea production, captivating tea enthusiasts with its distinctive flavors and cultural significance.

·        According to the Lao PDR Ministry of Agriculture and Forestry, coffee is one of the country's top three agricultural crops with the highest export value. It is only natural that the country aims to increase its coffee production to one million tons by 2025.

·        Laos's coffee market is one of the most robust in the South East Asia region. At-home consumption is mostly dominated by instant coffee, but there is a strong growth potential for the development of chain coffee shops and cafés that serve more specialty products, such as single-origin coffee and more varied offerings.

·        In comparison with the wider non-alcoholic drinks sector, coffee is the third largest spending category in 2023, accounting for 17.6% of spending within the non-alcoholic drinks segment. By 2027, coffee will maintain its position as a big spending segment, although its share of total non-alcoholic drinks spending will fall to 15.1%.

 

Tourism

·        Laos is anticipating the arrival of 400,000 to 800,000 foreign visitors in November and December, bringing the total number of foreign visitors in 2023 between 2.9 million and 3.3 million.

·        According to statistics from the ministry, more than 2.4 million foreign tourists visited Laos in the first nine months of 2023, an increase of 285 percent compared to the same period last year.

·        The figures indicate the tourism industry is making a strong recovery, and it is expected that by the end of this year, the government's goal of tourist numbers will be reached.

·        The surge in visitor numbers has been partly attributed to the popularity of the China-Laos Railway and the expressway linking the capital Vientiane and tourist hotspot of Vangvieng.

·        A trip from Vientiane to northern Luang Prabang, Oudomxay and Bokeo provinces used to take many hours, but now the travel is faster and more convenient.

·        In addition, Lao Airlines is offering direct flights to and from countries in the region.

·        The Lao government has made tourism a top priority in efforts to revitalize the economy while rolling out a plan to attract at least 1.4 million foreign tourists in 2023.

·        In addition, the government is preparing for Visit Laos Year 2024 and expects to attract at least 4.6 million visitors next year, which will generate a revenue of 712 million U.S. dollars.

 

Mining & Metals

·        Minerals and mining sector has been a major driver of growth in Laos. The country is gifted with natural resources of enormous untapped mineral resources deposits in over 570 locations across the country. Mining has been a key driver of economic growth since production first started in 2002. Since then, foreign investment helped develop rich mineral resources, which accounts for approximately 30% of total foreign direct investment in the Lao PDR.

 

Energy & Renewables

·        The country's hydropower sector greatly benefited from its geographic characteristics – mountainous areas with abundant water resources. Realizing this resource potential, Lao DPR started its journey to become the Battery of Asia, exporting electricity to neighboring countries. Laos has the capacity to produce 10,000-15,000MW of solar power and about 100,000MW of wind power

·        Laos has a target to achieve 30% of its energy consumption from renewable sources by 2025

·        Hydropower and transmission and distribution infrastructure will be the focus of increasing investment from the Lao government as it develops its power industry and by growing opportunities in the development of solar power.

·        Laos to become 4th country in the world in potassium exports. The potash mines are exploited to obtain potassium salts including (silvite and carnallite) that are the most important components of mainly agricultural fertilizers; therefore it is an essential plant nutrient.

·        Laos imported about 1.4 million liters of fuel worth about 803 million USD.Energy transition and hydrogen-ammonia energy use in Laos are considered important and necessary for Laos to define short- and long-term strategies relating to energy such as power generation, low-cost transportation, mining and heavy industry, and agriculture.

 

Connectivity and Infrastructure

·        Lao PDR is called "Trade gateway or land link" because it has a long area and borders with China, Vietnam, Myanmar and Cambodia, which are important countries in driving the economy. This makes it conducive to transportation and logistics systems. Laos currently has 12 special economic zones. Through improved connectivity, Laos can bolster trade between the provinces, ASEAN member countries. The Ministry of Public Works and Transport has a strategic plan to extend the railway from Vientiane to Champassak province in southern Laos and also to the Vung-ang seaport in Ha Tinh province, Vietnam. The strategic plan is called the "Laos Logistics Link." This progress in upgrading railway infrastructure and logistics in Laos by the government of the Lao PDR and its counterparts paves the way for greater ASEAN connectivity and could significantly reduce transport costs while removing existing transport obstacles.


Textiles and Clothing

·        The Apparel market in Laos is projected to generate a revenue of US$270.40m in 2023.

·        With an annual growth rate of 2.79% (CAGR 2023-2027), the market is expected to expand steadily.

·        Among the different segments, Women's Apparel dominates, accounting for a market volume of US$118.40m in 2023.

·        Looking ahead, the volume of the Apparel market is projected to reach 75.1m pieces by 2027.

·        In 2024, the market is anticipated to experience a volume growth of 2.6%.

·        The average volume per person in the Apparel market is estimated to be 8.9pieces in 2023.

·        The traditional textile industry in Laos is experiencing a revival, with a growing demand for handwoven garments made from locally sourced materials.