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

This research paper examines the environmental implications of trade liberalization within the silk handicrafts sector of Lao PDR. While the sector is currently characterized by a low environmental footprint due to organic sericulture and natural dyeing, the author warns that scaling up production to meet growing international demand may lead to increased water pollution and land-use pressures. The paper suggests that maintaining 'green' credentials is essential for accessing premium niche markets and recommends the implementation of a National Export Strategy, improved wastewater treatment, and the establishment of a National Production Centre for sericulture.

• The silk handicrafts sector is a vital part of the national economy with growing international demand, 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 lacks sufficient domestic capacity to supply raw silk for its handicrafts sector, necessitating imports from China and Vietnam. In 2003, domestic mulberry plantations covered 805 hectares and produced an estimated 9 tons of silk, while total raw silk used in production was approximately 120 tons.
• The sector's primary environmental advantage is its 'green' nature, as sericulture is inherently environmentally friendly with organically grown mulberry and the use of natural dyes, which allows access to premium international niche markets.
• Wastewater is the primary environmental concern for the sector. Although the current impact is low due to the small scale of family businesses, increased production will likely lead to higher water consumption and pollution, as many small companies lack the resources to upgrade obsolete wastewater treatment systems.
• Expanding domestic silk production to meet export goals may create land-use conflicts. With 80-85 percent of the country consisting of upland areas (slopes greater than 12 percent) and limited lowland areas for food crops, the government must implement land-use planning to prevent mulberry plantations from displacing vital food production like rice paddies.
• A case study of Nikone Handicraft in Vientiane demonstrated that even centres using natural materials can produce significant wastewater due to obsolete technology. Experiments conducted with the MoCI showed that water efficiency could be improved by reusing rinsing water from the final two steps of the processing system.

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} }