Economy

The largest contributor to Laos’ Gross Domestic Product is agriculture which provides a living for 80 % of the population. The principal crop is sticky rice, but corn, tobacco, cotton and coffee are also grown. Raising livestock for domestic and regional consumption is an important economic activity. The primary national industries include hydropower, tin and gold mining, timber, tourism, garment manufacture and agro-forestry.

In Xieng Khouang the most important agricultural crops consist of rice and corn alongside cash crops such as cassava and peanuts. Cattle and buffalo raising is a significant contributor to rural household income. Timber industry plays an important role in the local economy. The Fujian cypress (Fokienia), locally called Mai Long Leng and the Red Sandalwood (Pterocarpus) produce a very durable wood and are greatly valued for furniture. Harvest of non-timber forest products such as resins, herbal medicine and forest foods for commercial and home use are also very important contributors to the local economy and rural people’s livelihoods. Important non-farming activities in the province are silk weaving, embroidery, basketry, umbrella making, blacksmithing, broom making, and food processing. Tourism is the second biggest industry in Xieng Khouang.