The silk handicrafts sector is an ancient sector of the Lao People’s Democratic Republic (Lao PDR), which continues to play a vital role in the national economy. This sector has a strong domestic market, as Lao women use silk material for making clothes and traditional decorations. In addition, the naturally dyed and often handmade material has become synonymous with Lao culture throughout the world. As a result, demand from regional and international markets for Lao silk handicrafts is growing steadily and providing key export earnings and potential opportunities for domestic producers. In 2004, handicraft exports totalled US$13 million, accounting for 1.6 percent of total exports (MoIC & ITC 2006).

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