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The Lao PDR is primarily an agricultural economy, with this sector
contributing 51 percent of the GDP. Approximately 1,880,000 individuals are involved
in agricultural work. The Lao PDR’s recent major agricultural census provides an
excellent overview of the basic nature of Laos' agricultural system. The results of this
survey indicate that 79.7 percent of the total population is engaged in farming. The
average land holding is 1.62 hectares with 27 percent of households having 2 hectares
or more and 36 percent having less than 1 hectare. An impressive 97 percent of
farmers own their own land. About 93 percent of the area devoted to rice production is
for the production of sticky rice, a subsistence crop used primarily for home
consumption. However, in terms of commercialization of agricultural products, the
quantity and quality of agricultural products have not yet been standardized.
By comparing neighboring countries, especially Vietnam and Thailand, it can be
said that these nations have been able to produce agricultural products for export to
generate large amounts of income each year and make their economy much better than
Laos. In contrast, Laos has a large land area and a landscape suitable for agricultural
production and farmers account for about 80%, but Laos’ agriculture has not developed
to produce as much as posible products for export in terms of both quantity and quality.
Especially, growth of Laos’ agriculture have reduced in the last five years of
2016-2020, with only 2.1% annually, much lower than the target of 3.4% per year set
up in the 8th National Economic and Social Development Plan (2016-2020). Therefore,
the development of commodity agriculture or commercial agriculture to speed up
growth of agriculture and to exploit Lao’s advantage of cultivating land have been
increasingly encouraged in the country economic development strategy.
Savannakhet is the largest province among the 17 provinces of Lao PDR. The
name derives from Savanh Nakhone (heavenly district or land of fertility suitable for
agriculture') the province's original name. It bears the same meaning as Nakhon Sawan, a
city in Thailand.
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