Rice market in Laos

Earlier Report Observations

Rice production in Laos increased from 3.6 million tons in 2018 to 3.9 million tons in 2023, with market volume following a similar growth trajectory. This expansion was supported by consistent government policies aimed at food security and export promotion, including the 'Made in Laos' initiative to enhance the competitiveness of agricultural products on international markets.

The strengthening of bilateral trade agreements with Thailand, Vietnam, and China, which reduced tariffs and facilitated market access, played a key role in boosting export volumes. By 2022, agricultural exports, including rice, accounted for 20% of Laos' total exports. However, inflationary pressures and depreciation of the Lao kip led to a decline in the market's dollar value, falling from $2.4 billion in 2018 to $1.4 billion in 2023.

Adaptation to the COVID-19 pandemic in 2020 involved focused measures to maintain food security and support local producers, which helped stabilize production and export flows. Subsequent investments in modernizing production infrastructure and quality standards further contributed to the steady rise in physical output through 2023.

Production rice in Laos

In kind, 2017-2020, K t

From 2017 to 2020, Laos ranked as the 21st largest rice producer in the world.

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Laos experienced a decline in rice production for the third consecutive year. In 2020, the country produced 3 519 K t of rice, showing no significant change compared to the previous year. Over the 2017-2020 period, production decreased by 12.9%, which corresponds to a compound annual growth rate (CAGR) of -4.5%.

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

In value, 2017-2020, M $ US

Rice production in Laos declined for the second consecutive year. In 2020, the output was valued at 1 581 M $ US, marking a substantial decline of 19.6% compared to 2019. Between 2017 and 2020, production decreased by 33.4%, equating to an annualized rate of -12.7%. The highest value was recorded in 2018 at 2 452 M $ US. The largest decline occurred in 2019 at 19.8%, while the largest increase was in 2018 at 3.2%.

Annual dynamics of production in Laos in value, 2017-2020, M $ US

Exports rice from Laos

Exports in kind, K t

The market exhibited volatility during these years. Exports reached their lowest point in 2019 and peaked in 2020, with a 3.3-fold difference between these years. In 2020, exported rice volumes from Laos amounted to 117.3 K t, showing a steep increase of 228.1% year-over-year. The minimum value was recorded in 2019 at 35.8 K t, with the largest decline that year at 22.0%.

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

From 2017 to 2020, China and Vietnam remained the primary markets for exports in kind, jointly accounting for 81.6% of total flows, while other partners made up the remainder.

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 showed signs of volatility over the observed period. The lowest value was observed in 2019, while the highest occurred in 2020, with a peak-to-trough ratio of 2.6 times. In 2020, exported rice volumes from Laos totalled 52 719 K $ US, which is 164.9% higher than the previous year. The minimum value was recorded in 2019 at 19 903 K $ US, with the largest decline that year at 36.5%.

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

Throughout 2017–2020, Vietnam (41.0% of exports in value terms), China (38.6% of exports in value terms), and Belgium (12.6% of exports in value terms) remained the key destinations for exports in value terms, together accounting for 92.2% 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 rice to Laos

Imports in kind, K t

Volatility characterized the market behavior during these years. Import levels fluctuated, with the low in 2018 and the high in 2020, showing a 4.9-fold difference. In 2020, rice shipments to Laos from abroad came to 142.9 K t, indicating a steep advance of 52.5% from 2019. The minimum value was recorded in 2018 at 29.0 K t, with the largest decline that year at 49.2% and the largest increase in 2019 at 222.7%.

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

In 2017–2020, Thailand and Vietnam remained the key destinations for imports in kind, jointly taking 95.7% of total flows, while other partners were much less significant individually.

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

After a two-year decrease, Laos's volume of rice imports increased. In 2020, a total of rice imports by Laos was valued at an unspecified amount K $ US, representing a 48.0% advance from a year earlier. Between 2017 and 2020, imports decreased by 17.1%, equating to an annualized rate of -6.1%. The minimum value was recorded in 2019 at 25 016 K $ US, with the largest decline in 2018 at 38.2%.

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

In 2017–2020, Thailand and Vietnam dominated imports in value terms, accounting together for 92.0% of total flows, with other destinations having smaller individual contributions.

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

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