Industry and handicrafts
During the past 30 years, the industry and handicrafts sector has developed consistently. The number of factories increased from just over 100 in 1975 to 26,200 this year. There are 119 large factories, 623 medium sized factories and 25,458 small factories, 95 percent of which are processing factories, including agricultural produce processing (66 percent), food processing (four percent), wood processing (four percent), car assemblies (five percent), construction material producing (four percent), garments (three percent) and others making up the final nine percent.
These factories have created jobs in the industrial sector for over 100,000 people. Female labours in the garment sector cover 80 Percent of the jobs created. To date, industrial products have sprouted with different quantity and quality in each locality in order to meet the increasing demands of domestic and international markets. In the past five years (2001-2005) average industrial product values increased by 11.46 percent per year, and by the end of 2005 the sector is expected to make up 27 percent of GDP.
The processing industry increased 11.51 percent , the electricity sector was up 0.47 percent, and at the present time the country’s electricity production capacity is 690.2MW (up from only 33MW in 1975). 96.5 percent of districts, 33.17 percent of villages and 45 percent of households in the country have access to electricity.
The mining sector increased by 33.8% and there are 90 currently companies that have been issued licenses to invest in the Lao mining sector, 34 of which are foreign owned and 56 local. Since 2003, gold and copper exploration and production has also kicked off in the Vilabouly district of Savannakhet province.
The most effective businesses in the industry and handicraft sector are joint ventures between the Lao Government and foreign companies. These account for around two thirds (about 69 percent) of the investment. State enterprises make up 20.4 percent and the private sector accounts for 10.2 percent.

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