Laos’ garment industry suffered considerably during the pandemic. Many factories were closed and a shortage of workers also resulted in delay in the delivery of products. The garment industry has encouraged every village to have at least one shop stocked with clothes produced locally, aiming to reduce the import of the products and controlling the inflation rate of the country.

The industry says Lao people should use Lao products and replace imports. Curbing expenditure in foreign currencies is also seen as important to prevent imported goods from being brought into the country illicitly and priced higher than necessary. All garment factories in the country, regardless of their size, have been requested to closely cooperate, coordinate, and together tackle the problems.

Laos exports 80 per cent of its goods to Europe, nine per cent to Japan, four per cent to the US, and two per cent to Canada. There are some 77 garment factories in the country, 50 of which make goods for export and the other 27 produce garments for local consumption. About 25,000 people are employed by the factories, 90 per cent of them women. These factories produce a variety of clothes, including uniforms, shirts, T-shirts, polo shirts, office wear, coats, jeans, blankets, shoes, and other items.