Lao People’s Democratic Republic (Lao PDR) is a growing economy, averaging 8% per annum in GDP growth over the period from 2005 to 2019. The Government of Lao PDR continues to work on developing a conducive business environment, diversify its economy, and is strongly committed to becoming an important transport “land link” between China and Southeast Asia (a number of infrastructure megaprojects to better connect the country are underway).
Many new investors are looking for opportunities in the agricultural sector, as the land is underutilized and there is a shift toward commercializing and developing a high-value agriculture industry.
Coffee is an important commodity in world trade with consumption growing steadily at an annual rate of just over 2%. With the climate and geographical location of Southeast Asia being ideal for coffee cultivation, some of its countries (Viet Nam and Indonesia) have become coffee exporting giants, emphasizing the potential that Lao PDR has to follow in their footsteps.
The coffee sector in Lao PDR has experienced a tremendous growth in the past 20 years, with both planted areas and production increasing about threefold since 1999. It is the 3rd most exported agricultural crop in terms of value from Lao PDR. ITC analysis indicates that Lao PDR has an export potential of USD 155 million in coffee per year by 2024, including an untapped potential of USD 74 million, which means that Lao PDR has the potential to double its coffee exports over the next few years.
To access the full document, please click here: Investment Profile: Coffee Sector in Lao PDR