Coffee is by far the most promising product for export. In 1992, export of coffee accounted for around 80% of the export value in the agricultural sector and contributed for 7.4% of the total export value of the country. Export also includes several annual and perennial corps of limited quantities.
The Lao PDR has the highest potential land/person in the Greater Mekong Subregion large and unexploited fertile land and favorable climatic conditions, particularly in the boloven basaltic plateau. This could offer promising opportunities for low-intensive investment in the agro-processing industry for export based on annual and perennial crops.
The on-going improvement of main National Roads linking major provinces, together with the high rate of urbanization have created favorable conditions for investment in the import-substitution agro-processing industries.
Forestry : It has been estimated that the Lao PDR has the highest ratio of
forest to total area in ASIA. Wood products including lumber are one of the main
export earning of Lao PDR. In 1993, it accounted for 22% of the total export value.
In view of the long term sustainable development and the preservation of the
environment, the Government has been implementing the policy of striking a balance
between exploitation and conservation and shifting from exports of logs and lumbers
towards the promotion of wood processing.
Due to shortage of capital and the technical know-how in the country, the
development of wood processing subsector also needs the investment and the
introduction of new technology of the foreign investors.