ADB approves US$10 million support for recovery of Lao forests

Laos will restore degraded forests and expand rural income options under a new responsible forestry project for which the Asian Development Bank (ADB) has approved US$10 million.
The funding will support Responsible Forestry Project Phase I, which aims to reduce forest degradation, strengthen climate resilience, and improve livelihoods for forest-dependent communities.
The financing comprises a concessional loan of US$5 million from ADB’s ordinary capital resources and a grant of US$5 million through ADB’s Asian Development Fund, according to the bank’s website.
The project will focus on Bolikhamxay and Khammuan provinces and Vientiane, where forests play a key role in household incomes and environmental protection.
ADB’s Country Director for Laos, Ms Shanny Campbell, said the project links forest protection with economic opportunity.
“By promoting responsible forestry and empowering communities, we can drive sustainable growth, protect ecosystems, and create opportunities for women and rural families,” she said.
Forests cover about 62 percent of Laos and support key economic sectors, employing more than 65 percent of the national workforce. But years of unsustainable use have degraded forest resources, costing the country nearly 19 percent of gross domestic product each year.
The ADB said public funding alone cannot reverse forest loss. It stressed the need for private investments to restore forests, expand tree planting and develop conservation-based ecotourism.
During Phase I, the project will study current challenges and prepare detailed plans for a larger Phase II. It will help build partnerships between the government, private investors and communities to develop commercial plantations and conservation activities.
The project will strengthen institutions and help communities take part in forestry work and benefit more fairly from forest resources.
The Asian Development Fund provides grants to the poorest and most vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund helped about 384,000 people move out of poverty and supported the creation of around 500,000 jobs.

By Times Reporters
(Latest Update December 25, 2025)