Natural capital in Lao PDR is a majorsource of wealth for the country and becomes even morestrategic in times of economic stress. While forest productsdirectly benefit vulnerable rural communities, ecosystemservices from forests support key economic sectors such asenergy, agriculture, industry, and tourism. Forests anddownstream industries also offer important job andlivelihood opportunities in rural areas in Lao PDR that canbe expanded. This country forest note provides an upstreamanalysis of the status of forests as well as investments andpolicies relevant to the forest sector in the Lao People’sDemographic Republic. The analysis looks at forests in aprogrammatic and cross-sectoral manner to strategicallyposition the World Bank Group to support the country indelivering on forest-relevant interventions.