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Agriculture
The Lao economy is primarily an agricultural one. In 2001, 52.2% of the GDP originated in agriculture and forestry, and this sector employed over 80% of the labor force. Agriculture has been a relatively dynamic sector with increases in cultivated land and yields for rice and maize as well as increasing production of cattle, pigs and chickens. Over the past twenty years paddy yields doubled, making Laos’s rice fields more productive than those of Thailand.

Laos has three types of agricultural production: low land irrigated, low land non-irrigated, and upland slash and burn agriculture. The government has an explicit goal of increasing the amount of irrigated land and decreasing slash and burn agriculture. Important crops are rice, maize, starchy roots, mung and soy beans, peanuts, tobacco, cotton, sugarcane, coffee and tea. In particular, coffee production has been viewed as an area of growth for the country. The abundant cover of first growth tropical hardwoods also gives Laos a comparative advantage in logging, lumber and forest products. 

Fresh water fish from the lakes formed behind hydroelectric dams (see below) also has export potential.

 

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