Unmanufactured tobacco and refuse market in Laos

Earlier Report Observations

The market for unmanufactured tobacco in Laos contracted significantly from 56 578 tons in 2018 to 26 610 tons in 2022, a period of consistent annual decline. This downward trend reversed in 2023, with the market volume expanding by 34% to reach 35 796 tons.

Regulatory changes in 2022, including stricter import and export licensing rules under Decision No.0333/MOIC and the introduction of a new ASEAN Harmonized Tariff Nomenclature, raised barriers for trade. These measures contributed to the market contraction by limiting import flows and adding administrative complexity for market participants.

The market recovery in 2023 was driven by the government's ongoing open-economic policy aimed at attracting foreign investment, particularly into natural resource sectors. This policy environment stimulated domestic tobacco production, which increased alongside a rebound in imports, leading to overall market growth.

Production unmanufactured tobacco and refuse in Laos

In kind, 2017-2020, t

From 2017 to 2020, Laos held the 18th position globally in the production of unmanufactured tobacco and refuse.

Top producers of unmanufactured tobacco and refuse, 2017-2020

World map of production of unmanufactured tobacco and refuse, 2017-2020

Laos experienced a second consecutive year of decline in unmanufactured tobacco and refuse production. In 2020, the country produced 32 082 tonnes, marking a controlled decrease of 9.8% compared to the previous year. Over the period from 2017 to 2020, production fell by 9.9%, which translates to an annualized rate of 3.4%. The highest production level was recorded in 2018 at 54 005 tonnes. The most significant drop occurred in 2019 with a 34.1% decrease, while the largest increase was in 2018 at 51.6%.

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

Exports unmanufactured tobacco and refuse from Laos

Exports in kind, t

The market exhibited volatility during these years. Export volumes varied significantly, with a 5.5-fold difference between the low in 2018 and the high in 2020. In 2020, Laos exported 1 629 tonnes of unmanufactured tobacco and refuse, representing a 27.2% increase from 2019. The lowest export volume was recorded in 2018 at 298 tonnes. The most substantial decline occurred in 2018 with a 75.7% drop, while the largest increase was in 2019 at 330.4%.

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

From 2017 to 2020, Vietnam, Hong Kong, and China were the primary buyers of unmanufactured tobacco and refuse from Laos, accounting for 26.6%, 26.1%, and 19.5% of exports in kind, respectively. Together, these three countries represented 72.1% of total exports in kind.

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 this period. Import levels fluctuated by 4.1 times between the low in 2020 and the high in 2017. In 2020, exports of unmanufactured tobacco and refuse from Laos reached 967 thousand US dollars, down by 58.3% from 2019. The most significant decline was recorded in 2018 at 68.0%, while the largest increase occurred in 2019 at 83.1%.

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

Between 2017 and 2020, Hong Kong, Madagascar, and Poland were the main destinations for Laos's exports of unmanufactured tobacco and refuse in value terms, with shares of 21.0%, 19.0%, and 16.2%, respectively. Collectively, these three countries accounted for 56.3% of total export 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 unmanufactured tobacco and refuse to Laos

Imports in kind, t

The market demonstrated volatility during the observed period. Import volumes showed a 4.9-fold variation from the low in 2017 to the peak in 2019. In 2020, Laos imported 7 484 tonnes of unmanufactured tobacco and refuse, reflecting a sharp decrease of 25.7% compared to 2019. The highest import volume was recorded in 2019 at 10 079 tonnes. The most substantial increase occurred in 2019 with a 251.2% rise.

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

From 2017 to 2020, China, Thailand, and Vietnam were the leading suppliers of unmanufactured tobacco and refuse to Laos, contributing 60.1%, 19.0%, and 9.5% of imports in kind, respectively. Together, these three countries made up 88.7% of total imports in kind.

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

Following a two-year increase, Laos's imports of unmanufactured tobacco and refuse declined. In 2020, imports amounted to 12 696 thousand US dollars, down by 40.1% from the previous year. Over the period from 2017 to 2020, imports grew by 36%, corresponding to a compound annual growth rate of 10.8%. The peak value was recorded in 2019 at 21 192 thousand US dollars. The largest increase occurred in 2018 with a 68.4% rise.

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

Between 2017 and 2020, China, the United States, and Thailand were the primary suppliers of unmanufactured tobacco and refuse to Laos in value terms, with shares of 58.9%, 11.5%, and 9.3%, respectively. Together, these three countries comprised 79.7% of total imports in value terms.

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

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