Paddy rice market in Laos

Earlier Report Observations

Between 2018 and 2020, the paddy rice market in Laos saw a modest contraction in volume, with the total market declining from 3 573 thousand tons to 3 503 thousand tons. This period was characterized by targeted efforts to build long-term resilience, notably through the development and certification of new hardy rice seed varieties like Hom Dorkkham 8 and Hom Xebangfay 4 by state research institutes. These varieties, bred to withstand environmental stresses such as flooding and disease, were introduced to help farmers adapt to the significant threats posed by climate change, which aimed to stabilize harvests and mitigate potential production losses.

From 2021, the market entered a phase of sustained growth, expanding to 3 875 thousand tons by 2023. This upward trend was supported by broader government initiatives to boost agricultural exports beyond $2 billion, which included promoting crop diversification and improving production techniques. Business-friendly economic reforms and open-door policies further encouraged sectoral growth. Additionally, while high transport costs presented a challenge for exporters like Lao-Agro 2000, persistent consumer demand for traditional glutinous rice varieties such as Khao Kai Noi continued to underpin the domestic market. The earlier investment in climate-resilient seed development provided a foundation that supported production capacity during this expansion.

Production paddy rice in Laos

In kind, 2017-2020, K t

On a global scale, Laos ranked as the 21st largest producer of paddy rice from 2017 to 2020.

Top producers of paddy rice, 2017-2020

World map of production of paddy rice, 2017-2020

Laos experienced a decline in paddy rice production for the third consecutive year. In 2020, the country produced 3 519 thousand tonnes, which remained relatively stable compared to the previous year. Over the period from 2017 to 2020, production decreased by 12.9%, with a compound annual growth rate of -4.5%.

Annual dynamics of production in Laos in kind, 2017-2020, K t

Exports paddy rice from Laos

Exports in kind, t

The market showed an unstable trend throughout this period. Export levels fluctuated significantly, with the lowest point in 2019 at 6 769 tonnes and the highest in 2020 at 16 052 tonnes, representing a 2.4-fold difference. In 2020, exports increased sharply by 137.2% compared to 2019. The largest decline occurred in 2019, dropping by 43.8%.

Annual dynamics of product's exports from Laos in kind, 2017-2020, t

From 2017 to 2020, the structure of exports in kind was dominated by a single market: Vietnam, which accounted for 95.5% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Laos in kind, 2017-2020

Exports in value, K $ US

The market exhibited an unstable trend throughout the timeframe. Export volumes peaked in 2017 and fell to their lowest point in 2019, with a top-to-bottom ratio of 3.5 times. In 2020, paddy rice export volumes from Laos were recorded at 3 914 thousand US dollars, showing a sharp improvement of 105.3% compared to 2019. The minimum value was in 2019 at 1 906 thousand US dollars, and the largest decline that year was 60.9%.

Annual dynamics of product's exports from Laos in value, 2017-2020, K $ US

From 2017 to 2020, Vietnam was by far the main destination for paddy rice exports from Laos in value terms, accounting for 95.3% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Laos in value, 2017-2020

Imports paddy rice to Laos

Imports in kind, t

There were noticeable fluctuations in market performance during this period. Import volumes reached their maximum in 2019 at 1 178 tonnes and dropped to a minimum in 2020 at 40 tonnes, a 29-fold shift. In 2020, Laos's paddy rice imports decreased by 96.6% compared to the previous year. The largest increase was recorded in 2019, rising by 2 025.8%.

Annual dynamics of product's imports to Laos in kind, 2017-2020, t

From 2017 to 2020, the geographical pattern of imports in kind was characterized by a strong dominance of Vietnam, whose share reached 81.6% of total flows, while other partners held relatively minor shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Laos in kind, 2017-2020

Imports in value, K $ US

There were noticeable fluctuations in market performance during the period. Import volumes varied 25 times from the high in 2019 to the low in 2020. In 2020, the volume of paddy rice imports into Laos totaled 14 thousand US dollars, reflecting a steep decrease of 96.0% compared to the previous year. The maximum value was in 2019 at 338 thousand US dollars, and the largest increase that year was 699.7%.

Annual dynamics of product's imports to Laos in value, 2017-2020, K $ US

Over 2017 to 2020, Vietnam and Thailand remained the main suppliers of paddy rice to Laos, with a combined share of 99.0% of total imports in value terms, and a fragmented remainder across other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Laos in value, 2017-2020