Lao PDR sits at the intersection of four critical ecoregions of global significance and is host to some of the world’s most biologically rich terrestrial and aquatic ecosystems, which are vital for supporting its economy and the livelihoods of its people. The country boasts over 14.7. million ha of forest, equivalent to 62%[1] of its national land area while also counting 945,000 ha of rivers, waterbodies, and other natural and constructed wetlands. 

The country is home to an estimated 8,000 to 11,000 species of flowering plants, many of which are economically valuable. According to the National Biodiversity Strategy and Action Plan 2016-2025 (NBSAP), Lao PDR's fauna includes between 150 and 200 species of reptiles and amphibians, 700 species of birds, 90 species of bats, over 100 species of large mammals and 500 species of fish.

But Lao PDR’s biodiversity is in danger, including forest and aquatic ecosystems which are home to many rare and endangered species.  Several of these species are endangered such as the Eld’s deer and the Siamese Crocodile in the Savannakhet Province, with Lao PDR now believed to host most of the world’s remaining populations of these species.

Lao PDR is also the most ethnically diverse country in South East Asia, with 50 distinct ethnic groups which have unique farming and livelihood practices perpetuating the rich cultural heritage of the country.

Nature and biodiversity are intricately linked to livelihood opportunities, especially for the rural communities, which represent 67 percent of the population. According to the World Bank, over 39 percent of rural family income in Lao PDR came from Non-Timber Forest Products (NTFPs) in 2019. The Lao PDR NBSAP 2016-25 estimates that nearly 90 percent of the over 1,400 species of wild animals are used as protein sources by local people. Approximately 70 percent of all farming households fish on a seasonal basis, and fish represents nearly 50 percent of Lao PDR’s protein intake.

The sustainable management of the country’s rich biodiversity has tremendous economic value for Lao PDR. 

Laos’ pristine landscapes, unique wildlife and cultural heritage present a unique opportunity to develop nature-based tourism. In 2019, the World Bank estimated that, with the right investments, nature-based tourism could grow in a decade from the current 5 percent of GDP to at least the global average of 10.4 percent of GDP and provide 10 percent of jobs. To maximize the economic benefits of a nature-based tourism model, Lao PDR will need to ensure that it is developed in a way that promotes conservation, safeguards against environmental degradation, and preserves the country's unique attractions. There is already a significant regional market for nature-based tourism at Lao PDR’s doorstep, with the six largest ASEAN economies recording 91 million tourist arrivals in 2023, representing nearly 130% growth compared to the previous year. Tapping into this market presents a tremendous economic opportunity for Lao PDR to finance conservation through tourism.

Food security is another area where preserving biodiversity can yield significant benefits. As the Lao population reaches 7.7 million, the country now needs to feed nearly 33 percent more people than it did two decades ago, necessitating genetic diversity and new farming practices to mitigate the loss of biodiversity. According to the Lao PDR National Agro-biodiversity Programme and Action Plan (2015-25), the country boasts an impressive 3,000 rice varieties, including 14 wild rice species with significant export potential. Local varieties such as Khao Kai Noi (little chicken rice), a glutinous rice, are now in high demand both domestically and internationally. Boosting sustainable harvesting practices in rural farming communities could capitalize on this demand.

Unlocking the medicinal potential of NTPFs also presents several opportunities. The Institute of Traditional Medicine of the Ministry of Health has catalogued between 2,000 and 3,000 plants used in medical treatments, with most species collected from the forest ecosystems, including several endangered species. Preserving plant biodiversity and practising sustainable harvesting can encourage the use of plant-based remedies in primary healthcare and provide key ingredients for the drugs of the future.

A Biodiversity Assessment published by the World Bank in 2020 estimates that income from NTFP could be worth $510 million per year, and income from the consumption and trade of fish and other aquatic animals worth $101 million per year. Overall, the Bank puts the total value of Lao PDR’s natural capital at $149 billion, with 78 percent coming from water and forests and a further 22 percent from agriculture.

Over the past several years, the Government of Lao PDR has taken several steps to protect its rich biodiversity and use its natural heritage in a sustainable manner.  The  9^th National Socio-Economic Development Plan 2021-2025 prioritizes the sustainable utilization and management of Natural Resources through investment models for the conservation and restoration of the forests while promoting ecotourism in a sustainable manner. One example is the Namkat Yorla Pa model, in which the public and private sectors, as well as local communities, were engaged to safeguard the forests. 

The country is a signatory to the Convention on Biological Diversity and has already formulated two cycles of National Biodiversity Strategy and Action Plans, with the latest cycle covering 2016-25. The tentative steps taken towards establishing a national park system and placing some of its forest management under local village stewardship under the new Forestry Law (2019) are particularly welcome. These initiatives place Lao PDR on a better biodiversity footing, as noted in the 2024 Asia Pacific SDG Progress Report published by UNESCAP, which ranks Lao PDR's progress on SDG 15 above its peers in the Asia-Pacific region

Lao PDR’s ability to reap the benefits of its vast natural asset base depends on giving nature a chance to replenish itself.  Much needs to be done to enhance the enforcement of environmental laws and regulations and to address the immediate threats to biodiversity loss, such as climate change, illegal wildlife trade, deforestation, illegal logging, infrastructure development in and around protected areas, and the expansion of agriculture and settlements.

As a country that depends on natural resources for its development, Lao PDR is highly vulnerable to climate change, which is already causing temperatures to rise and more erratic rainfall, with extreme weather events such as droughts and floods expected to become more severe and frequent. A 2019 study conducted by the International Union for the Conservation of Nature in Beung Kiat Ngong showed that increased temperatures will disproportionately affect the reproductive success of turtles and other reptiles, while the surrounding communities will experience severe drought and flooding, affecting rice agriculture—their main source of income. Maintaining high levels of biodiversity and integrating climate action into key sector policies and action plans will put Laos in a better position to adapt to extreme weather events and safeguard the long-term sustainability of the country’s development and growth.

Tackling illegal wildlife trade is another critical priority to prevent biodiversity loss. In addition to the consumption of wild meat and wildlife-based products within Lao PDR, the increasing demand from neighbouring countries and an international market aggravate the issue. According to recent studies, Illegal wildlife trade, particularly snaring, has devastated large and medium-sized mammals. Tigers and leopards are likely extinct, and elephant populations have sharply declined due to habitat loss, poaching, and human-wildlife conflict. Urgent action is required to protect endangered species.

Population growth, agricultural expansion, land use change and resource extraction also pose challenges to biodiversity conservation. According to the 5^th National Report of Lao PDR to the UN Convention on Biological Diversity, unsustainable use of NTFPs, exacerbated by population growth and commercial trade, has led to over-hunting and over-harvesting, impacting various species. Infrastructure development, including hydropower projects and mining activities in protected areas, can result in habitat fragmentation, degradation, and deforestation. Forest clearance for smallholder farming and shifting cultivation, practiced by approximately 300,000 families, contributes to biodiversity loss. Project-specific Environmental and Social Impact Assessments (ESIAs) and broader Strategic Environmental Assessments (SEAs) are needed to balance development with biodiversity protection.