Sweet potatoe market in Laos

Earlier Report Observations

The sweet potato market volume in Laos experienced significant fluctuations between 2018 and 2023. A sharp decline to 87 thousand tonnes in 2019 was primarily driven by extensive flooding that damaged agricultural production and a concurrent spike in exports, which reached US$20.92 million as the government prioritized the crop for trade negotiations with China. Despite the onset of the COVID-19 pandemic in 2020, which disrupted supply chains and accelerated trends like online grocery shopping, the domestic market volume rebounded strongly to 126.8 thousand tonnes, supported by a recovery in production and substantial import volumes.

From 2021 onward, the market entered a phase of more moderate adjustment and growth. A drop to 101.4 thousand tonnes in 2021 occurred alongside a government reduction of the VAT rate from 10% to 7% to stimulate the economy. The subsequent recovery to 108.6 thousand tonnes by 2023 was underpinned by sustained public investment in road and storage infrastructure to reduce post-harvest losses, as well as initiatives like the FAO's Hand-in-Hand project that fostered export-oriented agro-industries along the Laos-China railway corridor. Throughout this period, the enforcement of Lao-language labeling regulations for all products also shaped the market environment.

The market's trajectory was further shaped by strategic policy focus, including the Lao Ministry of Agriculture and Forestry's longstanding designation of sweet potatoes as a priority crop for export market access. Increased involvement of Chinese investors in production for export and the eventual approval of formal export protocols to China in 2024 highlighted the continued orientation toward external markets, influencing the overall supply dynamics for sweet potatoes within Laos.

Production sweet potatoe in Laos

In kind, 2017-2020, K t

Top producers of sweet potatoe, 2017-2020

World map of production of sweet potatoe, 2017-2020

In 2019, Laos produced 109.1 thousand tons of sweet potatoes, the lowest level during this period. Production then increased to 124.5 thousand tons in 2018, marking the highest output and a 13.0% year-over-year growth. In 2020, production reached 116.3 thousand tons, showing a modest 6.6% increase compared to the previous year. Overall, from 2017 to 2020, production grew by 5.6%, averaging an annualized rate of 1.8%.

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

Exports sweet potatoe from Laos

Exports in kind, K t

Exports of sweet potatoes from Laos showed significant fluctuations during this period. In 2018, exports were at their lowest point, totaling 8.4 thousand tons. They then surged dramatically to 136.8 thousand tons in 2019, representing a 1,532.5% increase. In 2020, exports declined sharply to 75.4 thousand tons, a 44.9% drop compared to 2019. Overall, exports varied by a factor of 16 between the high in 2019 and the low in 2018.

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

From 2017 to 2020, China and Thailand dominated Laos' sweet potato exports in volume, together accounting for 99.8% 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

Export values for sweet potatoes from Laos experienced notable volatility. In 2018, exports were at their lowest, valued at 9 554 thousand US dollars. They then rose to 20 921 thousand US dollars in 2019, a 119.0% increase. In 2020, exports declined to 15 097 thousand US dollars, showing a steep 27.8% year-over-year drop. Overall, export values changed by a factor of 2.2 between the peak in 2019 and the trough in 2018.

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

Between 2017 and 2020, Thailand and China were the leading destinations for Laos' sweet potato exports in value terms, with a combined share of 99.4% of total flows, while other countries accounted for the remainder.

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

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

Imports sweet potatoe to Laos

Imports in kind, K t

Import volumes of sweet potatoes into Laos were highly volatile during these years. In 2017, imports were at their lowest, with a significant gap compared to later years. They then increased dramatically to 114.7 thousand tons in 2019, a 60,790.4% rise. In 2020, imports contracted to 85.9 thousand tons, a 25.1% decrease year-over-year. Overall, imports varied by a factor of 19,721 between the high in 2019 and the low in 2017.

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

From 2017 to 2020, the country structure of sweet potato imports into Laos was highly concentrated, with Vietnam alone accounting for 99.9% of total volume flows.

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

Import values for sweet potatoes into Laos showed irregular changes, indicating a volatile market. In 2017, values were at their lowest point, with a substantial difference from later years. They then increased to 11 637 thousand US dollars in 2019, a 5,298.2% rise. In 2020, imports declined to approximately 8 597 thousand US dollars, a 26.1% decrease compared to the previous year. Overall, import values changed by a factor of 1,847 between the maximum in 2019 and the minimum in 2017.

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

Over the period from 2017 to 2020, virtually all sweet potato imports into Laos in value terms were associated with Vietnam, which held a 99.8% share of total flows.

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

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