That projected dollar amount reflects a 58.4% increase from $5.8 billion five years earlier during 2019.
Year over year, the overall value of Laotian exports fell by -10.1% compared to $10.2 billion starting from 2022.
Based on the average exchange rate for 2023, the Lao kip depreciated by -103.8% against the US dollar since 2019 and diluted by -26% from 2022 to 2023. Laos’ weaker local currency makes its exports paid for in stronger US dollars relatively less expensive for international buyers.
The 5 biggest exports from Laos by value are electrical energy, potassic fertilizers, unwrought gold, uncoated paper, then copper ores and concentrates. Collectively, that quintet of 5 major Laotian exports represent about half (49.6%) of the Asian country’s international sales revenues during 2023.
Laos’ Key Trading Partners
The latest available country-specific data from 2021 shows that 96.1% of products exported from Laos were bought by importers in: Thailand (32.2% of the Laotian total), mainland China (31.4%), Vietnam (17.5%), Australia (4.9%), Cambodia (1.8%), Switzerland (1.6%), Singapore (1.28%), Hong Kong (1.23%), Japan (1.16%), Germany (1.09%), India (1.05%) and the United States of America (0.9%).
From a continental perspective, 88.8% of Laotian exports by value was delivered to fellow Asian countries while 5.2% was sold to importers in Europe. Another 4.9% worth was delivered to buyers in in Oceania led by Australia.
Tinier percentages went to North America (1.1%), Africa (0.1%), and Latin America (0.04%) excluding Mexico but including the Caribbean.
Given Laos’ population of 7.58 million people, its total $9.2 billion in 2023 exports translates to about $1,200 for every resident in the Southeast Asian country. That dollar metric is on par with the average $1,200 per capita one year earlier in 2022.
Top 10 Exports from Laos
The following export product groups represent the highest dollar value in Laotian global shipments during 2023. Also shown is the percentage share each export category represents in terms of overall exports from Laos.
- Mineral fuels including oil: Up by -10.8% (US$2.2 billion)
- Fertilizers: Up by 31.2% (US$882 million)
- Ores, slag, ash: Up by 25.4% (US$876.8 million)
- Gems, precious metals: Up by -32.9% (US$683.8 million)
- Paper, paper items: Up by -8.3% (US$455.6 million)
- Electrical machinery, equipment: Up by -8.7% (US$409.5 million)
- Vegetables: Up by -10.6% (US$345.4 million)
- Rubber, rubber articles: Up by -51.2% (US$342.7 million)
- Woodpulp: Up by -14.6% (US$304.1 million)
- Clothing, accessories (not knit or crochet): Up by -7.7% (US$277.6 million)
Laos’ top 10 export product categories generated almost three-quarters (73.4%) of the overall value of its global shipments.
Fertilizers was the fastest grower among the top 10 export categories, up by 31.2% from 2022 to 2023.
The only other category for improving Laotian export sales was ores, slag and ash via a 25.4% advance, led by iron and copper ores and concentrates.
The leading decliner among Laos’ top 10 export categories was rubber both as materials and articles made from rubber, pulled down by a -51.2% year-over-year reduction.
The above listed product categories are at the two-digit Harmonized Tariff System (HTS) code level.
Drilling down to the more granular four-digit HTS codes, electrical energy represents Laos’ most valuable exported product at 23.5% of the country’s total. In second place was potassic fertilizers (9.4%) trailed by unwrought gold (7.1%), uncoated paper (4.9%), copper ores and concentrates (4.7%), iron ores and concentrates (4.2%), sweet potatoes and yams (3.6%), dissolving chemical woodpulp (3.2%), natural rubber (2.7%), then phone devices including smartphones (2.1%).
Products Resulting in Best Laotian Trade Surpluses
Laos generated an estimated US$593.1 million trade surplus for 2023, shrinking -69.7% from $1.96 billion in black ink one year earlier for 2022.
The following types of Laotian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Ores, slag, ash: US$876.2 million (Up by 26.5% since 2022)
- Mineral fuels including oil: $794.3 million (Down by -29.1%)
- Fertilizers: $738.9 million (Up by 37.9%)
- Gems, precious metals: $594.8 million (Down by -11.2%)
- Paper, paper items: $379.1 million (Down by -6.6%)
- Vegetables: $336.8 million (Down by -7.3%)
- Woodpulp: $268.6 million (Down by -18.1%)
- Clothing, accessories (not knit or crochet): $263 million (Up by 0.7%)
- Rubber, rubber articles: $226.7 million (Down by -62.7%)
- Footwear: $180.4 million (Down by -12.8%)
Laos has highly positive net exports in the international trade of copper and iron ores or concentrates. In turn, these cashflows indicate Laos’ competitive advantages under the ores, slag and ash product category.
Products Causing Largest Laotian Trade Deficits
Below are exports from Laos that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Laos’s goods trail Laotian importer spending on foreign products.
- Machinery including computers: -US$1.1 billion (Up by 20.6% since 2022)
- Vehicles: -$753.9 million (Up by 27.7%)
- Plastics, plastic articles: -$294.1 million (Up by 6.8%)
- Electrical machinery, equipment: -$292.7 million (Down by -28.9%)
- Articles of iron or steel: -$276.5 million (Up by 2.3%)
- Iron, steel: -$275.9 million (Up by 44.1%)
- Sugar, sugar confectionery: -$210 million (Up by 9.3%)
- Beverages, spirits, vinegar: -$164.2 million (Up by 28.9%)
- Cereal/milk preparations: -$147 million (Up by 13.5%)
- Other chemical goods: -$140.7 million (Up by 79%)
Laos incurred highly negative net exports and therefore deep international trade deficits under the machinery including computers product category.
Laotian Export Companies
Not one Laotian corporation ranks among Forbes Global 2000.
Wikipedia lists international trade-related companies from Laos. Selected examples are shown below.
- Electricité du Laos (electricity)
- Lao Airlines (airliner)
- Lao Brewery Company (alcoholic beverages)
- Lao Skyway (airliner)
- Nam Theun 2 Power Company (electricity)
In macroeconomic terms, total exported goods from Laos represent 12.5% of its overall Gross Domestic Product for 2023 ($73.9 billion valued in Purchasing Power Parity US dollars). That 12.5% for exports to overall GDP in PPP for 2023 compares to 13.2% for 2022. Those percentages suggest a relatively decreasing reliance on products sold on international markets for Laos’ total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Laos’ unemployment rate averaged 1.2% for 2023, same as an average 1.2% one year earlier according to Trading Economics.
Nicknamed the “Sandalwood City”, Vientiane is the capital city for Laos.
See also Indonesia’ Top 10 Exports, Indonesia’ Top 10 Imports, Top Asian Export Countries and Coal Exports by Country
Research Sources:
Central Intelligence Agency, The World Factbook Asia: Laos. Accessed on September 15, 2024
Forbes 2019 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on September 15, 2024
International Monetary Fund, Domestic Currency Exchange Rates (GDP based on Purchasing Power Parity). Accessed on September 15, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on September 15, 2024
International Trade Centre, Trade Map. Accessed on September 15, 2024
Investopedia, Net Exports Definition. Accessed on September 15, 2024
Wikipedia, Flag of Laos. Accessed on September 15, 2024
Wikipedia, Gross domestic product. Accessed on September 15, 2024
Wikipedia, Laos. Accessed on September 15, 2024
Wikipedia, List of Companies of Laos. Accessed on September 15, 2024
Wikipedia, Purchasing power parity. Accessed on September 15, 2024