Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR

The document examines the Lao PDR's silk handicrafts sector, noting its potential for sustainable growth through 'green' niche markets but highlighting risks related to wastewater and land use as production scales up. It emphasizes the need for quality certification and improved water management to maintain the sector's competitive advantage.

• The silk handicrafts sector is a significant contributor to the Lao PDR economy, with exports totaling US$13 million in 2004 (1.6 percent of total exports) and expected to reach US$15 million in 2005-06.
• Lao PDR faces a significant shortage of domestic raw silk, necessitating imports from China and Vietnam. In 2002-2003, domestic mulberry plantations produced approximately 6.5 to 9 tons of silk per annum, while the sector used about 120 tons of raw silk annually.
• The sector's reliance on organic sericulture and natural dyes provides a 'unique selling proposition' for international premium niche markets, potentially creating positive environmental impacts by avoiding chemical fertilizers and pesticides.
• Wastewater is the primary environmental concern for the sector. While current impacts are low due to the small scale of family businesses, increased production will lead to higher water consumption and pollution, as many small companies lack the resources to upgrade obsolete wastewater treatment systems.
• Expanding domestic raw silk production to meet export demand may create land-use conflicts. With 80-85 percent of the country consisting of upland areas and limited lowland areas for food production, the government must implement land-use planning to prevent mulberry plantations from displacing vital rice paddies.
• A case study of Nikone Handicraft in Vientiane demonstrated that inefficient washing technology contributed to high wastewater discharge (approximately six cubic metres of water used per day), but experiments showed that rinsing water from the final two steps could be reused to increase efficiency.

APA

Soulivanh, S. (2007). Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_lao_silk.pdf

Chicago

Soulivanh, Somphong. Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_lao_silk.pdf.

Wikipedia

{{cite report |last1=Soulivanh |first1=Somphong |title=Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR |publisher=International Institute for Sustainable Development |date=December 2007 |url=https://www.iisd.org/system/files/publications/rtea_lao_silk.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{soulivanh2007environmental, author = {Soulivanh, Somphong}, title = {{Environmental Impacts of Trade Liberalization in the Silk Handicrafts Sector of the Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = dec, url = {https://www.iisd.org/system/files/publications/rtea_lao_silk.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }