Development of commercial agriculture in lao pdr: A case study of savannakhet province

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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.