The current forest of Lao PDR decreased to 9.8 million ha in 2002 from 11.2 million ha in 1992 with an average loss of 134,000 ha per annum or equivalent to 0.6% of the total land area. If this reduction rate continues, the current forest area will decrease to 7.4 million ha (31.3% of the total land) by 2020. Upper Mixed Deciduous Forest, which is the dominant forest type occupying 56 % of current forest in 2002, was significantly reduced. Most deforestation in the country is related to expansion of shifting cultivation both subsistent and commercial logging as well as commercial tree plantations i.e. rubbers. Infrastructure development - hydropower schemes, power lines, expansion of district and province centers also contributed to forest loss. Forest degradation due to forest fragmentation has increased with small forest compartments having increased as a proportion of the total forest area from 0.9% in 1992 to 6.7% at present, while large forest compartments (larger than 1,000 ha) have decreased from 88% to 54%.  Nevertheless, the government aims to achieve 70% forest cover by 2020 by promoting reforestation through land zoning, provision of alternative ways of production to shifting cultivators and so on.

Forest lands in Lao PDR are also at the centre of land-use conflicts for their important capital for industrial use and commercial crop production. Plantation concessions allocated to the state, army and foreign concessionaires have resulted in land conflicts and outbreaks of violence.

Lao PDR joined the UN-REDD Programme in October 2012, and will benefit from regional trainings and workshops, and participation in the UN-REDD Programme Community of Practice. In 2012 an initial gaps and opportunities analysis was conducted.  Results identified as priorities for UN-REDD support: mechanisms to ensure the full and effective participation of all stakeholders; and approaches to address multiple benefits, especially combining carbon and biodiversity.