Comparative Advantage Analysis of Trade between the Lao PDR and Countries in the Greater Mekong Sub-region

Authors

  • chue xiong Viengkham District Office of Labour and Social Welfare
  • Bounthavy Siphanthong
  • Chansamone Sengdala

DOI:

https://doi.org/10.69692/SUJMRD12(Fast%20track)87

Keywords:

Relative Trade Advantage, Greater Mekong Sub-region, Trade, Exports

Abstract

This study aims to: 1) analyze the trade situation between Lao PDR and the countries in the Mekong Subregion (GMS) and 2) evaluate the comparative advantage in trade using Vollrath's Relative Trade Advantage (RTA) index during the period 2020-2024. Using annual geographic data collected from Lao Trade Portal and ITC Trade Map at Level 2 product level and analyzed with descriptive statistics combined with RTA calculation for the main product categories with the highest total trade value of the top 5 of each trading partner.

The analysis results indicate that: the total trade value of Lao PDR with the sub-region below the Mekong River in the period 2020-2024 has a continuous increasing trend and there is a high concentration in the 3 main trading partners: Thailand, China and Vietnam. The export structure still focuses on resource-based goods and primary goods, while the import of industrial goods or capital goods also indicates that: Overall, Lao PDR is in a surplus state, but the growth rate of the overall trade balance has a declining trend. The RTA found that Lao PDR has advantages in energy products, agricultural products and some groups of minerals, but has disadvantages in some types of products that reflect limitations in standards, transformation and competitiveness.

Author Biography

chue xiong, Viengkham District Office of Labour and Social Welfare

This study aims to 1) analyze the merchandise trade patterns between the Lao PDR and countries in the Greater Mekong Sub-region (GMS), and 2) assess comparative trade advantages using Vollrath’s Relative Trade Advantage (RTA) index during the period 2020–2024. Annual secondary data were collected from the Lao Trade Portal and ITC Trade Map at the Level 2 product classification. The analysis employs descriptive statistics alongside RTA calculations for the top five product groups with the highest cumulative trade values for each trading partner.

The findings indicate that the total trade value between the Lao PDR and the Greater Mekong Sub-region (GMS) increased steadily during 2020–2024 and was highly concentrated in three key partners: Thailand, China, and Viet Nam. The export structure remained dominated by resource-based and primary commodities, while imports were largely concentrated in industrial and capital goods. Overall, the Lao PDR maintained a trade surplus; however, the growth rate of the trade balance showed a declining trend. In terms of Relative Trade Advantage (RTA), the results reveal that the Lao PDR holds advantages in energy products, agricultural commodities, and selected mineral groups, but faces disadvantages in certain products, reflecting constraints related to standards, processing capacity, and overall competitiveness.

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Published

2026-03-31

How to Cite

xiong, chue, Siphanthong, B., & Sengdala, C. (2026). Comparative Advantage Analysis of Trade between the Lao PDR and Countries in the Greater Mekong Sub-region. Souphanouvong University Journal Multidisciplinary Research and Development, 12(Fast Track), 87–93. https://doi.org/10.69692/SUJMRD12(Fast track)87

Issue

Vol. 12 No. Fast Track (2026): Multidisciplinary Research and Development

Section

Articles