NAFRI Research Report: Farmers’ access to credit in the Lao PDR

11 May 2021 Authors: NAFRI

The agricultural sector plays an important role in the development of the Lao PDR. In 2017, the growth rate of GDP was 6.9%. The growth rate of the agricultural sector increased by 2.9% contributing to 17.7% of the country’s GDP. In addition, the agriculture sector contributed to 60.8% of total employment. The financial sector largely misses the needs of poor farmers and small processing units located in rural areas, as most financial institutions are located in the cities. In rural areas, small-scale credit schemes and financial support are mainly provided to farmers through development projects and local government agencies.