Asia Tree Fund

LAOS

Country’s total area: 236 800 km²

Climate: Tropical monsoon

Annual rainfall: 1,000 – 1,500 mm.

Population: 7 million

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Lao PDR, along the Lao Mekong Plains, has significant potential and a comparative advantage over its neighbors to develop financially viable forest plantations.

– Asia Development Bank

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Asia Tree Fund – Laos

The Problem

Forests, along with water, are the most important natural resource in Lao PDR. Since 2000, Laos has lost 3.73Mha of tree cover, equivalent to a 19% decrease in tree cover and 1.92Gt of CO₂e emissions. From 2001 to 2019, 63% of tree cover loss occurred in areas where the dominant drivers of loss resulted in deforestation. This has resulted in vast areas of degraded forestland that can be brought under productive forest plantations.

Asia Tree Fund – Laos

Opportunity

Lao has considerable potential for commercial plantations for the following reasons:

– Climate and site conditions suitable for growing trees.
– Low population density.
– Availability of degraded forest areas that can be used for tree plantations.
– Closeness to large neighboring countries.
– Flat or undulating terrains.
– Existing road infrastructures that are gradually being upgraded.
– Low cost land lease.
– Competitive costs for labor and inputs.

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