EuroCham Laos Participates in Forest Policy Dialogue on Timber Value Chains and Business in Lao PDR
On 3 June 2026, EuroCham Laos participated in the Forest Policy Dialogue on Timber Value Chains and Business in Lao PDR, held in Vientiane Capital under the ProFEB project. The dialogue gathered government institutions, development partners, timber companies, SMEs, trade associations, civil society and research institutions to discuss the future of Lao PDR’s wood processing sector and the next phase of the Wood Processing Sector Export Roadmap for 2026 to 2035.
The discussions focused on a central challenge for Lao PDR: developing competitive timber value chains while protecting forest ecosystems and ensuring that wood products can be legally and sustainably traced. Protected and restoration areas remain essential for biodiversity, forest regeneration and climate resilience, while production forest areas, plantations, village use forests and imported timber all raise different technical and regulatory questions for the sector.
Traceability was highlighted as a major issue. When the origin of timber cannot be clearly demonstrated, companies face uncertainty, buyers lack confidence, and access to higher value markets becomes more difficult. As international demand increasingly favours legal, deforestation free and responsibly sourced timber, sustainability is becoming not only an environmental priority, but also a condition for competitiveness and market access.
The dialogue also underlined the industrial transition facing Lao wood processors. With natural hardwood no longer serving as the main basis for the industry, the sector is moving towards plantation-based timber. This creates opportunities for more sustainable supply, but also requires new technologies, better drying and moisture control, stronger quality management, skilled workers and clearer production standards. Without these improvements, companies risk higher rejection rates, lower margins and limited export opportunities.
EuroCham Laos contributed to the discussion on wood processing and export through a presentation by Per Gradin, Director of the Executive Board of EuroCham Laos. His intervention focused on access to export markets and stressed that Lao processors must adapt to market requirements through legal compliance, certification, traceability, process control, quality assurance systems and consistent product documentation.
The discussion pointed also the need for investment in education, technical training, modern processing equipment, certification readiness and access to finance. These elements are essential to increase the quality of Lao wood products, and to improve the internal standards for SMEs in order to support the sector.
Overall, the dialogue showed that Lao PDR has real opportunities to strengthen its wood processing sector, but that market access will depend on the credibility of the whole value chain. Sustainable timber supply, clear rules, reliable documentation, stronger skills and better processing standards will be essential to build trust with international buyers and support long term sector development.
For EuroCham Laos, the dialogue was an important opportunity to contribute to a multi stakeholder discussion on sustainable timber supply, market access and industrial competitiveness.
EuroCham Laos will continue to support exchanges between European and Lao stakeholders and promote a business environment that encourages responsible investment, legal timber trade and sustainable value chain development.