By Anne Hennings, reviewed by Luck Bounmixay, Natural Resource Management Specialist at the World Bank
A landlocked country of more than 7.4 million people between the Mekong River and Annamite Cordillera, the Lao People’s Democratic Republic (Lao PDR or Laos) has the lowest population density in Southeast Asia. Most of the 50 recognized ethnic groups in Laos have traditionally subsisted from shifting (swidden) agriculture and forest products and this is still a major part of the livelihoods of ethnic people in remote rural settings.
A rice and fish farm in Laos. Photo by Jev55(CC BY-NC 2.0)
Patterns of land use have been transformed through population displacements during and after the Indochina wars; government policies to eradicate opium and swidden cultivation; and the relocation of hundreds of thousands of residents to new villages closer to roads and public services.1During the Second Indochina War (1955-1975) large parts of Laos were bombarded by the United States which did not only destroy most infrastructure but also left soils unsuitable for agriculture. With external support, the Lao government invested in infrastructure but it remains poorly developed until today.
In the 1990s, the distribution and registration of land followed a twofold approach. In rural areas the focus was on allocating state land to communities and individual users through land use certificates for permanent land including agricultural land. In turn, titling was prioritized in (peri-) urban areas.
Since the early 2000s, the government has prioritized economic growth and poverty alleviation through the sustainable development of the nation’s rich natural capital including land by encouraging private investment and granting concessions of state land to investors.2 Adopted in 2006, the national Turning Land into Capital (TLIC) strategy has brought mining, hydropower, and agri-business land concessions to rural areas, frequently turning small-scale rice farmers into landless laborers in the process. In 2017, the Lao Central Committee acknowledged the shortcomings of the TLIC.
Despite several moratoria on new agricultural concessions, social injustice and rising inequality in socio-economic benefits from development initiatives in rural Laos prevail today. The revised Land and Forestry Laws of 2019 aim at improving good governance and more specifically transparency, and hold the potential to increase tenure security for rural communities.3 Yet it is early days to see if these measures will be effective. In addition, Laos’ experiences the effects of climate change with increasingly frequent floods and droughts.4
Land legislation and regulations
Land is a “national heritage” according to the Lao constitution that provides property rights. The state holds upholding rights to use, transfer and inherit land, and other natural resources in accordance with the law.5 Land is owned by the “national community”, with the state as its representative managing the land centrally and uniformly. The revised Land Law (2019) specifies rights and obligations of land users, control of land use, conflict resolution and penalty measures. Furthermore, it provides for a new digital national land ownership database which shall be accessible to the general public for a small fee.
The Government of Laos classifies the country land into 8 categories and each category is under different Ministries. The Ministry of Agriculture and Forestry manages agricultural land, forest land, submerged land and riverbanks, island, and recovered land. The administrative authorities at district and municipal level are in charge of approving the allocation of agricultural land use rights and the issuing of land certificates to individuals. The Ministry of Natural Resources and Environment, established in 2011, is the main government authority concerning land administration. Its Natural Resource and Environmental Information Centre collects land use data including leases and concessions. The Ministry of Energy and Mines is responsible for hydropower and mining projects. Policies on investment and concessions assign a leading role to the Ministry of Planning and Investment (MPI) for processing applications for commercial land concessions.6 The National Assembly plays an important role in monitoring land policies and channeling feedback from citizens.7
In addition to the Constitution and Land Law, other legal documents governing land administration include the new Forestry Law (2019), Law on Investment Promotion (2009), and the Decree on Compensation and Resettlement Management in Development Projects (2016). The implementation of the laws remains rather weak, particularly at district and provincial level due to limited technical and financial capacities
Land tenure classifications
The Property Law (1990) acknowledges State property, collective property, individual property, private property, and personal property. In general, land tenure can be distinguished between freehold and usufruct rights. Freehold titles granted to individuals or organizations are permanent. However, most families hold land use rights that are transferable and heritable if the land has been developed or improved in accordance with laws. Corruption and delays to register land are prevalent and in some cases authorities issue overlapping titles. Furthermore, most people in rural areas are not familiar with the registration procedures and cannot afford the fees to secure a title to their land.
Customary tenure and inheritance practices are widespread in rural Laos.8 Families usually manage and develop the land they customarily acquired for residential and agriculture production through home gardens as well as paddy land . In addition, communities commonly use and manage forest and pasture lands. The separate allocation of agricultural and forest land after 2012 altered customary tenure that traditionally revolves around swidden agriculture.9
A farmer displays ears of corn harvested on his farm near Luang Prabang, Laos, 2009 photo by CIAT Neil Palmer(CC BY-SA 2.0)
For the first time, customary land without documents is recognized by the revised Land Law. The Forestry Law entails a category of forest utilization that requires the approval from the relevant authority.10 Communal land titling has been piloted with temporary status but is not linked to indigenous status.11
International donors have supported the Government of Laos on an extensive set of policy studies, an inventory of land concessions, and supported several phases of land titling. The World Bank’s current project “Enhancing Systematic Land Registration” (2021-2026) aims at disaggregating data by sex and shall provide guidance for customary tenure registration.
Village authority is responsible to mediate disputes including the disputes over land and land related resources. If the village level is unable to solve the problem, depending on the nature of the disputes, the case may be transferred to the next higher levels through the administrative and judicial system. Land disputes on resettlement and compensation have occurred in the context of land concessions and infrastructure development in peri-urban areas around Vientiane.12
Land use trends
Laos’ economy is based on the extraction and export of its natural resources mainly, timber, minerals, hydropower, rubber, and cash crops generate state revenues. More than 70% of Laos’ population depends (in)directly on agriculture and forestry and 63.1 % live in rural areas. According to the last Agricultural Census in 2010/2011, the average farm size is 2.1 hectares. The most common crop is rice followed by corn, cassava, sugarcane, coffee, as well as rubber and eucalyptus. In addition to fishing, important non-timber forest products include bamboo, rattan, orchids, and honey. Approximately, 1,2 million hectares of Laos’ land is considered arable plus 780,000 hectares that are under permanent crops and meadows or pastures. Swidden agriculture is still common despite discouragement efforts from the government in order to combat soil erosion and land degradation. Large land concessions for hydropower, mining, and agricultural development led to the dispossession of peasants and rising inequality.14 International support has contributed to clearing unexploded ordnance (UXO) which affect every fourth village in Laos and limits land use.
A rice and fish farm in Laos. Photo by Jharendu Pant (CC BY-NC 2.0)
The country’s mineral resources are increasingly important to the economy. In 2022, the mineral sector contributed 2,7% to the GDP. Laos has significant copper, gold, and iron ore deposits, followed by fair amounts of silver, tin, coal, potash, zinc, gypsum, and gemstones. Artisanal mining – both private and state-owned – is common in Laos. In alluvial mining, more than 75% of rural small-scale miners are women. Only in 2002, the commercial exploitation of copper and gold started on a larger scale. The largest mining investors originate from China, Vietnam, and Thailand. In spite of the revised Law on Minerals, monitoring of the mining activities remains sketchy, and most mining operations fail to meet safety and environmental standards.15
Laos has the largest per capita volume of renewable water resources in Asia with the Mekong River Basin covering 90% of the country’s terrestrial area. The country’s forests – mostly deciduous forest - are among the most biodiverse in Southeast Asia but face high levels of degradation. Between 2001 and 2022, Laos lost 23% of its forest cover.16 In response to reaching a historic low in 2023 with only 40% remaining forest cover, the Ministry of Agriculture and Forestry started to implement conservation and forest protection measures. In addition to state development projects and industrial concessions, illegal logging is the main factor impeding the governments’ forestation goals which set out to reach 70% forest cover density by 2035. Moreover, burning practices are prevalent and resulted in a particularly strong fire season in the country including in Louang Phrabang province in 2023.17
Land acquisition in Laos
In general, Laos’ legislation allows temporary ownership and land leases. Land sales are prohibited but practiced. For temporary ownership, forest and agricultural land are initially allocated on a three-year basis by district or municipal authorities, such as the District Administrative Authority. After this initial period the beneficiary can apply to the provincial authorities to issue titles for long term use rights.
Lao nationals and foreigners can acquire leases and concessions for up to 50 years with extension potential, depending on the nature, location, size, and project details. Both leases and concessions need to undergo a bidding process although the Land Law provides little details. New provisions allow foreign developers to purchase temporary ownership for the construction of condominium or apartment buildings. In contrast to concessions and leases, temporary ownership - over a maximum of 50 years - allows foreigners for the first time to transfer, mortgage, or bequeath their rights over the land.
The state may expropriate land for public purposes with adequate and fair compensation e.g., in the form of cash, materials and assistance to replace solid structures, or the replacement of damaged crops.18 Yet, Decree 84 on Compensation and Resettlement (2016) and the Law on Resettlement and Vocation (2018) do not provide any safeguards for the actual expropriation nor grievance mechanism for affected land rights holders.19 Although customary tenure is now legally recognized, in cases of state expropriation its recognition is left to the local government with limited accountability mechanisms in place.20 In the past, state authorities often disregarded customary rights over land, especially in the context of infrastructure development or foreign investments.21
Land investments in Laos
Laos has emerged as one a new agricultural frontier attracting foreign investment in mining, hydropower, and agriculture over the last two decades.22 Following the Turning Land into Capital policy (2006) the Investment Promotion Department promotes foreign and domestic investment as part of the country’s development strategy.23 The Law on Investment Promotion (2009) was amended in 2016.
In addition, the recently amended Land Law provides more clarity on investments incentives, shifts the responsibility for Special Economic Zones from the Prime Minister’s office to the Ministry of Planning and Investment, and eases strict capital requirements. Most investors prefer entering joint ventures even if full ownership is allowed. Before commencing operations several steps are required that are often perceived as challenging, confusing about the ministries involved, and time-consuming. The process of obtaining concessionary licenses is less complex and faster. The government can withdraw land concessions if the land has been left undeveloped.
According to the national inventory of concessions and leases completed in 2017, more than 1,521 deals were recorded, including 30% agriculture projects, 20% plantation deals, 40% mining deals, and 8% hydropower projects. The total area of 89% of these deals amounts to more than 1 million hectares.24 The investors - mainly from China, Vietnam, and Thailand – meet communities with high expectations towards infrastructure development but rarely feel responsible to meet these. Due to serious human rights violations and environmental impacts on several concessions the government adopted (and lifted) several moratoria on issuing new plantation land concessions in 2007, 2009, 2012, and finally 2018.25 Studies show that only one third of the villages affected by land loss received monetary compensation.26
Concerns over poorly implemented land-use policies and inadequate compensation were expressed by local protesters, international human rights groups, and even the National Assembly.27 The previous government (2016-2021) recognized some of these problems and attempted addressing the concerns of the National Assembly, including illegal logging and compensation in the context of land concessions, but the situation has not improved significantly yet.
Women’s land rights
According to the Constitution, women enjoy the same political, social, and economic rights as men. In addition, the Family Law (1990) provides equal rights over matrimonial property. Both spouses need to agree on usage and sale of matrimonial property. In case of a divorce – which is considered a social stigma especially in rural areas - matrimonial property is equally divided. There is no difference between the rights of women or men to inherit.28
Customary rights and practices vary among ethnic groups, ranging from matrilocal, patrilocal, to bi-local patterns. In contrast to patrilocal communities, Lao-Tai, the biggest ethnic group in Laos, follows matrilocal practices in which women receive higher status and decision-making power after marriage. The wife’s family owns the house and property, and female spouses can continuously rely on their networks, resources, and support. On the other hand, women of the Hmong group move in with their spouse’s family and only have access to land through their husbands and in-laws. Here, men own land and manage related matters.29
Similarly, inheritance practices vary between different ethnic groups. In general, daughters are more likely to inherit than sons because most ethnic groups are matrilineal.30 Moreover, it is often custom that daughters take care of their aging parents and later inherit the land.31 This is also a practical solution as many families with small holdings cannot divide their land equally among their children. However, Mon Khmer, Hmong groups, and Chine Tibet communities follow patrilineal principles according to which land is transferred from fathers to male family members. In recent years, inheritance practices have undergone change towards bilateral patterns as a result of urban migration, the merging of villages, and the registration and titling of land.32
Despite rather progressive laws, women’s access to and control over land is often limited due to language barriers, male dominated decision-making processes and governmental agencies, and lack of knowledge and opportunities to access land programs. Not only does the application for a loan often require the signature of the head of household - who is often male – women tend to be not familiar with bank procedures or are ashamed to request a loan. Also, women might have inherited land, but this is often not registered in their name. Some families received joint certificates and titles even though spouses jointly acquired land under the Land Titling Project.33
Urban tenure
In recent years, Laos experienced rapid urbanization resulting from rural-urban migration. According to UN-Habitat, urban and emerging peri-urban settlements have low adaptive capacities and resilience and are highly vulnerable to climate change. Urban centers face particular challenges in waste management and water treatment infrastructure.
Laos intends to shake off its image of a land-locked country to one that is land-linked34. The Urban Development Strategy 2030 targets the regional integration of Laos’ urban centers to main transport and development corridors in the Great Mekong Subregion. This includes the train network built by China that connects Vientiane and other regional centers directly with China. Along these main infrastructure corridors, economic centers and small towns have been developed. However, urban development plans for provincial and district towns as well as the capital Vientiane are outdated and thus, do not take up-to-date standards and climate change-relevant adaptations into account35.
The main authorities include the Ministry of Public Works and Transport (MPWT) that is responsible for urban planning and the Ministry of Planning and Investment (MPI) has the mandate to attract and manage investment for urban development.
Climate change
Climate change increasingly affects Laos and its agricultural-dependent communities. Climate stress in addition to multiple hydropower projects that started operating in 2019 led to more frequent and extreme droughts and floods.36 Forecasted trends also indicate a change in monsoon patterns that may result in more crop failures. Furthermore, biodiversity has significantly decreased due to land use change, resource extraction, and population growth. While the government has implemented some mitigation and adaptation strategies, encroachment remains a major challenge. In remote areas, or in regions with no or weak claims by the original settlers, villagers illegally clear forest land.
The Ministry of Natural Resources and the Environment (MoNRE), in collaboration with other relevant Ministries, is in charge of the development and implementation of national policies on climate change. To combat soil erosion and land degradation, the government has discouraged swidden agriculture and instead promoted community-based forestry. A technical working group on Land Degradation Neutrality implementation was set up and the decree for Protected Areas (2023) supports implementation of the Forest Law on the management of Protected Areas. In 2021, the government also developed the National Strategy on Climate Change of the Lao PDR laying out a vision to the year 2050 as well as a strategy and programs of actions till 2030. In the long-term, the strategy aims at building resilient and sustainable rural landscapes.
Land governance innovations
In line with the implementation of the Voluntary Guidelines on the Responsible Governance of Tenure (VGGT), the Responsible Land Policy project aims at improving the institutional framework and procedures for securing land use and ownership rights. Funded by GIZ, the project also raises awareness among communities affected by investment projects and private investors, and provides trainings for government officials to guide and manage land investments in accordance with the law. Similarly, FAO’s Supporting Responsible Investments in Agriculture and Food Systems program provides support to the government, i.e. by raising awareness for responsible investments in agriculture and forests.
Where to go next?
The author's suggestion for further reading
An interesting data story on how land deals may contribute to increasing income but not well-being. The Centre for Development and Environment (CDE) at the University of Bern, Switzerland takes a closer look at livelihood losses in the context of large-scale land leases to investors in agriculture and forestry. In so doing, it allows a more detailed analysis of the benefits and disadvantages of large-scale land investments from a community perspective.
Upland Geopolitics provides a sharp analysis of the global land rush and emerging issues of food security, climate change, and regional trade. Based on ethnographic research on Chinese agribusiness investment in Northern Laos, Michael Dywer explores how legacies of the Cold War affect investments and social inequality today. The book is open access if readers start a free for 30 days subscription.
If you want to dive deeper into customary land rights in Laos the Assessment of Customary Tenure Systems in the Lao PDR provides timely insights into the diverse and heterogeneous layout of customary law and highlights current challenges.
Timeline - milestones in land governance
1955-1975 – Second Indochina War
Large parts of Laos were bombarded by the United States which did not only destroy most infrastructure but also left soils unsuitable for agriculture. Until today, Laos’ infrastructure remains poorly developed. Every fourth village in Laos is affected by unexploded ordnances (UXO).
Since 2000s – Promotion of the Investment in Land and Forests
The Turning Land into Capital policy (2006) promotes foreign and domestic investment as part of the country’s development strategy.
2007-2018 – Moratoria on Concessions
Multiple moratoria on the allocation of large-scale land concessions in agriculture and forestry are announced.
Since 2019 – Negative effects of hydropower projects
Since multiple hydropower projects started operating, the country has experienced increasingly frequent floods and droughts.
2019 – Revision of the Land and Forestry Law
Both the revised Land and Forestry Laws aim at improving good governance and transparency, and hold the potential to increase tenure security for rural communities. For the first time, the customary tenure is recognized – though not protected – by law.
2022 – Corruption in Land Administration
An audit of land use and management, infrastructure development projects, mining and timber processing firms documents large-scale corruption over 732 million USD since 2016.
2022 – Deforestation on historic high
Only 40% of the forest cover remains. In response, the Ministry of Agriculture and Forestry started to implement and expand on conservation and forest protection measures.
References
[1] Dwyer, Michael. 2023. Upland Geopolitics. Postwar Laos and the Global Land Rush. University of Washington Press Culture, Place, and Nature series, Seattle. Baird Ian; Shoemaker B. 2007. Unsettling Experiences: Internal Resettlement and International Aid Agencies in Laos. Development and Change 38:5, 865-888.
[2] Akhom Tounalom, Vice Minister of the Ministry of Natural Resources and Environment. 2012. Preface. In: Schönweger, O et al. (eds). Concessions and Leases in the Lao PDR: Taking Stock of Land Investments. Bern and Vientiane.
[3] Derbidge, Julian. (2021). Safeguards in cases of land loss or expropriation, Briefing Note #5. Vientiane: LIWG. URL: https://landportal.org/library/resources/safeguards-cases-land-loss-or-expropriation
[4] Bertelsmann Stiftung. 2023. BTI 2022 Country Report Laos. Bertelsmann Stiftung. https://bti-project.org/fileadmin/api/content/en/downloads/reports/country_report_2022_LAO.pdf
[5] Constitution of 1991, last amended in 2003: article 18. URL: https://landportal.org/library/resources/constituteproject915/constitution-lao-peoples-democratic-republic-1991-rev-2003
[6] Government of Laos PDR. Law on Investment Promotion (No. 02/NA, 2009), Articles 21-23.
[7] Wells-Dang A. et al. 2016. A Political Economy of Environmental Impact Assessment in the Mekong Region,” Water Alternatives 9:1. URL: https://landportal.org/library/resources/political-economy-environmental-impact-assessment-mekong-region-water-alternatives
[8] Kenney-Lazar, Miles. 2017. Governing Communal Land in the Lao PDR. Ministry of Agriculture and Forestry. Vientiane. URL: https://landportal.org/library/resources/governing-communal-land-lao-pdr
[9] World Bank. 2022. An Assessment of Customary Tenure Systems in the Lao PDR. International Bank for Reconstruction and Development; World Bank. URL: https://landportal.org/library/resources/assessment-customary-tenure-systems-lao-pdr
[10] Ibid.
[11] Hirsch, Philip/ Scurrah, Natalia. 2015. The Political Economy of Land Governance in Lao PDR. MRLG. URL: https://landportal.org/node/43357
[12] Baird, Ian. 2020. Problems for the plantations: Challenges for large-scale land concessions in Laos and Cambodia. Journal of Agrarian Change 20:3.
[13] FAO. 2018. FAO Stats. Rome. URL: https://www.fao.org/faostat/en/#country/120
[14] Bertelsmann Stiftung. (2023). BTI 2022 Country Report Laos. Bertelsmann Stiftung. https://bti-project.org/fileadmin/api/content/en/downloads/reports/country_report_2022_LAO.pdf
[15] Tappe, Oliver. 2021. Artisanal, Small-scale and large-scale Mining in Lao PDR. ISEAS, Singapore. URL: https://landportal.org/library/resources/artisanal-small-scale-and-large-scale-mining-lao-pdr
[16] Global Forest Watch. 2023. Country profile: Laos PDR. URL: https://gfw.global/3Q9njYq
[17] Ibid.
[18] Government of Laos. 2019. Resettlement Policy Framework. Vientiane. URL: https://landportal.org/library/resources/resettlement-policy-framework-vientiane
[19] Derbidge, Julian. (2021). Safeguards in cases of land loss or expropriation, Briefing Note #5. Vientiane: LIWG. URL: https://landportal.org/library/resources/safeguards-cases-land-loss-or-expropriation
[20] Derbidge, Julian. (2021). Safeguards in cases of land loss or expropriation, Briefing Note #5. Vientiane: LIWG. URL: https://landportal.org/library/resources/safeguards-cases-land-loss-or-expropriation
[21] Bertelsmann Stiftung. (2023). BTI 2022 Country Report Laos. Bertelsmann Stiftung. https://bti-project.org/fileadmin/api/content/en/downloads/reports/country_report_2022_LAO.pdf
[22] Baird, Ian. 2020. Problems for the plantations: Challenges for large-scale land concessions in Laos and Cambodia. Journal of Agrarian Change 20:3, 387-407
[23] Kenney-Lazar, M. et al. 2018. Turning Land into Capital: Assessing A Decade of Policy in Practice. Land Information Working Group (LIWG). URL: https://landportal.org/library/resources/mlrf2663/turning-land-capital-assessing-decade-policy-practice
[24] Hett, C. et al. (2020). Land Leases and Concessions in the Lao PDR: A characterization of investments in land and their impacts. Bern Open Publishing. URL: https://boris.unibe.ch/133115/1/Land_deals_in_the_Lao_PDR_Eng_4SEP2020_LQ.pdf
[25] Baird, Ian. 2023. Land Concessions and Postwar Conflict in Laos. Current History 122: 845, 230–234.
[26] Nanhthavong, V et al. 2020. Poverty trends in villages affected by land-based investments in rural Laos. Applied Geography 124.
[27] Bertelsmann Stiftung. 2023. BTI 2022 Country Report Laos. Bertelsmann Stiftung. https://bti-project.org/fileadmin/api/content/en/downloads/reports/country_report_2022_LAO.pdf
[28] Government of Laos. 1990. Law of Inheritance, Article 6.
[29] Phetsakhone Somphongbouthakanh; Schenk-Sandbergen, Loes. 2020. Women and Land Rights in Lao PDR: Rural Transformation and a Dream of Secure Land Tenure. LIWG. URL: https://laolandinfo.org/wp-content/uploads/2020/10/WLR-Eng-version-2020-by-LIWG.pdf
[30] For more information on matrilineal, patrilinear, or bilineal systems, see here: https://documents1.worldbank.org/curated/en/099510209262240112/pdf/IDU08252bdef0542e040e908b6f0334e794e4f5e.pdf
[31] CEDAW. 2003. CEDAW/C/LAO/1-5. Combined initial, second, third, fourth and fifth periodic reports of State parties. Lao People’s Democratic Republic.
[32] Phetsakhone Somphongbouthakanh; Schenk-Sandbergen, Loes. 2020. Women and Land Rights in Lao PDR: Rural Transformation and a Dream of Secure Land Tenure. LIWG. URL: https://laolandinfo.org/wp-content/uploads/2020/10/WLR-Eng-version-2020-by-LIWG.pdf
[33] Lastarria-Cornhiel, S. 2007. Who Benefits From Land Titling? Lessons from Bolivia and Laos. Gatekeeper Series No. 132. London, International Institute for Environment and Development (IIED). URL: https://landportal.org/library/resources/13017/who-benefits-land-titling-lessons-learned-bolivia-and-laos
[34] Epprecht, Michael. 2018. Urbanization processes in the Lao PDR Processes, challenges and opportunities. Final Report. CDE, Bern. URL: https://landportal.org/library/resources/urbanization-processes-lao-pdr-processes-challenges-and-opportunities
[35] Epprecht, Michael. 2018. Urbanization processes in the Lao PDR Processes, challenges and opportunities. Final Report. CDE, Bern. URL: https://landportal.org/library/resources/urbanization-processes-lao-pdr-processes-challenges-and-opportunities
[36] Bertelsmann Stiftung. 2023. BTI 2022 Country Report Laos. Bertelsmann Stiftung. https://landportal.org/library/resources/bti-2022-country-report-lao
Authored on
31 July 2024
