160704 field visit summary report lao pdr_final v

TA8897-REG: Climate Friendly Agribusiness Value Chain Sector Project 1
ADB Project Preparatory Technical Assistance (PPTA): 8897-REG
Climate Friendly Agribusiness Value Chain Sector Project
____________
FIELD VISIT SUMMARY REPORT
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Written by:
Mr. Phetsoulaphonh N. Choulatida
Deputy Team Leader / Agribusiness Value Chains Specialist
Vientiane capital, Lao PDR
04 July 2016
Feasibility Study on Rice and Vegetables Commodity Chain in Six Provinces of Lao PDR

Acknowledgements
This report was written by Mr. Phetsoulaphonh N. Choulatida, the Deputy Team Leader /
Agribusiness Value Chain Specialist. It is the outcome of 17 days (first trip was 1-3 June 2016, second trip
was 12-19 June 2016, and third trip was 17 June-2 July 2016) of administering feasibility study in five
provinces of Vientiane province, Khammouane, Savannakhet, Saravane, Champasak, and Sekong, Lao
PDR especially rice and vegetables producer groups which cover in the pilot projects where ADB funded.
The mission is a part of interim period mission to conduct focal group discussion with rice and
vegetables producers, vegetables import-export companies, bio-fertilizer factories, rice mills, and local
authorities in order to identify detailed sub-projects and ensure that the outcome from this study will be
applicable by all stakeholders who are currently working on rice and vegetables commodity chain.
I myself wish to acknowledge the assistances provided by PPTA team, Mr. Vinoth Vansy (ADB
national project coordinator) and his subordinates in the provinces and districts who assisted
community’s dialogue and field visits, also I am very thankful to Sir. Duncan Burnett (Team Leader in Lao
PDR) from Landell Mills Development Consultants co., ltd for high valuable suggestions and strongly
supports my study mission.
The authors personally give an overwhelming thanks to EA, Technical committees, provincial
and district authorities, private sectors, and communities to provide nice discussion during my visits.
July 04, 2016
Deputy Team Leader / Agribusiness Value Chain Specialist
ADB TA8897-Reg: Climate-Friendly Agribusiness Value Chains Sector Project
Lao PDR
P.O.Box:
Vientiane Capital,
Tel: +856(0)21 285170-71
Fax: +856(0)21 285172
Mobile: +856(0)20 5564 1055
Email: Phet.choulatida@gmail.com ; Phet.choulatida@yahoo.com
Website:

Table of content
Acronyms and abbreviations page
I. Overview of PPTA team and task………………………………………………………………………....... 5
II. Objectives of the field visits…………………………………………………………………………...……… 5
III. Selection of the field visit sites……………………………………………………………………………… 5
IV. Key observation and findings from the field visits………………………………………………… 5
1. Crop selection background and justification………………………………………………………….. 5
2. Agricultural sectorial strategy to 2025 and vision to the year 2030 ………………………. 7
2.1. Rice commodity………………………………………………………………………………………………….. 7
2.2. Vegetables commodity……………………………………………………………………………………….. 8
2.3. Crop diversification…………………………………………………………………………………………….. 8
2.4. Other potential crops could be added by project implementation team …………... 8
2.5. Irrigation Infrastructure Development ……………………………………………………….………. 9
3. Value chain province………………………………………………….……….………………................... 10
3.1. Provincial poverty status ……………………………………………………………..….………………... 12
3.2. Vientiane province…………………………………………………..……….……………….................. 12
3.3. Khammouane province…………………………….………………………………………………………… 15
3.4. Savannakhet province………………………………….…………………………………………………….. 18
3.5. Saravane province………………………………………….………………………………………………….. 21
3.6. Champasak province……………………………………….…………………………………………………. 24
6.7. Sekong province…………………………………………………………………………………………………. 27
4. Sub-projects and recommendations……………………………………………………..………………. 30
4.1. Vientiane province’s sub-project………….……………………………………………………………. 30
4.2. Khammouane province’s sub-project…………………………..…………………………………….. 32
4.3. Savannakhet province’s sub-project …………………………………..……...…………………….. 35
4.4. Saravane province’s sub-project …………………………………..……………………………………. 37
4.5. Champasak province’s sub-project ……………………………………………………………………. 39
4.6. Sekong province’s sub-project ……………………………………………………………………………. 41
Annex………………………………………………………………………………………………………………………… 44
References…………………………………………………………………………………………………………………. 52

Acronyms and Abbreviations
ADB Asian Development Bank
AISP Agriculture Infrastructure Sector Project
CFAVC Climate-Friendly Agribusiness Value Chains Sector project
EA Executive Agency
EM Effective Micro-organism
EMRIP The Enhancing Milled Rice Production
EWEC East West Economic Corridor project
DAFO District Agriculture and Forestry Office
DOA Department Of Agriculture
FDI Foreign Development Index
GAP Good Agriculture Practice
GMS Great Mekong Sub-region
HH Household
IDP Indochina Development Partners Group
IFAD International Fund for Agricultural Development
JICA Japan International Cooperation Agency
LKIP Lao Kip Currency
MAF Ministry of Agriculture and Forestry
MDG Millennium Development Goal
MOU Memorandum Of Understanding
NAFRI National Agriculture and Forestry Research Institute
NGPES National Growth and Poverty Eradication Strategy
OA Organic Agriculture
ODA Official Development Assistance
OOG Office Of Governor
PAFO Provincial Agriculture and Forestry Office
PN Phon Ngam (name of rice seed variety)
PPP Potential for Public Private Partnerships
PPTA Project Preparatory Technical Assistance
SNRMPEP Sustainable Natural Resource Management and Productivity Enhance Project
TDK Tha Dok Kham (name of rice seed variety)
TSN Tha Sa No (name of rice seed variety)
USD Currency of United State of America

I. Overview of PPTA mission and task
The field visits were part of work plan and PPTA team deliverables in order to prepare full-requirement
documentation by ADB and other potential donors, the purpose of which was to develop an overall feasibility
study and analytic design that will lead to specific findings and recommendation for developing the possibility
strategy and detailed sub-projects. These detailed sub-projects were developed through scrutinizing of a
variety of methodologies for assessing experience and lesson learnt from current rice and vegetables value
chain that could be used for the climate-friendly agribusiness value chain project during 2017-2022.
II. Objectives of the field visits
In support of this overall objective, the field visits were intended to serve three major purposes. (i) Collection
information for Technical committee to inform its recommendations, in particular to increase numbers’
understanding of how Climate-Friendly Agribusiness Value Chains Sector project (CFAVC) design is fitted and
will implement aligning government’s goal and local communities’ need. (ii) What data, evidence, and other
resources are primarily uniquely available in the country of Lao PDR to support CFAVC project. (iii) Provision
of an opportunity to explore a proof concept of the technical committee and EA. In particular the feasibility
introduces more rigorous approaches.
III. Selection of the field visit sites
The five provinces of Vientiane province, Khammouane, Savannakhet, Saravane, Champasak, and Sekong, in
Lao PDR were selected as the sites of field visits conducted by team of consultants and local government
staff. In particular, the selection was based primarily on the plenty of Lao people growing rice and vegetables
for market purpose. On the other hand, these sites are already included into MAF’s strategy by 2030 stated
that 10 provinces will focus on rice, and some of them are vegetables.
VI. Key Observation and findings from field visits
1. Crop Selection Background and Justification:
At the kick off workshop in November 2015, crops were suggested for potential climate-friendly value chain
support and in subsequent discussions. These include rice, vegetables, maize, silk and various fruit. Some, but
not all of these crops have been prioritized through reviewing secondary data and discussing the relevant
criteria with value chain key players that have knowledge of the products, including the relevant ministerial
departments

The commodity selection process has been and will be subsequently carried out in a four stage process:
 The development of selection criteria on the (i) the potential of the value chain to integrate more
producers within it and enhanced social inclusion (ii) potential private sector participation (iii) market
potential (iv) environmental sustainability (v) national and regional plans and strategies and scope
for climate resilient infrastructure.
 Stakeholder participation in the prioritizing process, which includes those individuals in the targeted
provinces of Vientiane, Khammouane, Savannakhet, Saravane and Champasack. Later on Sekong
province was added during the technical committee meeting on 29 April 2016.
 Preparation of criteria and ranking matrix
Consultation in the inception workshop was held in February 2016 to make a final decision in order to go
forward with the sub-sector assessment. The PPTA team proposes the key criteria for the selection process
be as follows:
 Potential of the value chains to improve livelihoods of small holder farmers
 Potential to integrate more smallholders/farmers access into the market
 Potential of the product/activity for poverty reduction or income generation
 Comparatively low barriers to entry for farmers and producers
 Low risk (market collapse, climate change etc.)
 Potential for land consolidation and farmer grouping/organization
 Increasing the their income through value chain integration
 Potential for public private partnerships (PPP)
 Market potential
 Strong domestic and/or international demand for the product
 Scope for import substitution
 Growth potential of certain products/activities
 Possibility for scaling up and improved efficiencies within the value chain
 Potential for leveraging public investment with private investment
 Improves the market linkages

Other criteria including
 Environmental sustainability
 Priority in national and regional strategies
 Social inclusion and gender
 Scope for infrastructure investment related to climate resilience
These multi-selection criteria were scored and ranked. The results of the ranking for crops, based on final
scores are: (i) rice 6.46; (ii) vegetables 5.96; (iii) maize 5.64; and silk 4.29. Due to time and resource
limitations, the value chain analyses for the two top priority value chains (rice and vegetables) were prepared
during the inception period and can be found in the annexes.
2. Agricultural Sectorial Strategy to 2025 and Vision to the year 2030:
2.1 Rice commodity:
In the plain areas: Ministry of Agriculture and Forestry (MAF) targets by 2020 to expand rice production areas
throughout the country up to 1.1 million hectares; for the rice paddy field in 7 large plains is about 800,000
hectares. By 2025, total paddy field areas throughout the country would be 1.2 million hectares. In addtion to
do zonning general production area, they have also been determined focal areas as model to improve rice
productivity such as: In Vientiane plain, the focal areas are included: Nam Mang-3, Nam Xuang, Nam Houm,
Tha Ngone flat area, Dong Pho Sy, Tha Pha–Nong Phong; by improving productivity up to 5 tons/hectares.
Xebangfai plain focuses on Xebangfai areas including Xebangfay and Nongbok districts, downstream area of
Nam Theun-2 (gate 1-2, gate 3, gate 4-5) Nyommalath and Mahaxay Districts, Hinboun District of
Khammoune Province and Phouhua Xaowa areas in Xaybouly District, Savannakhet Province. Among these, at
the beginning, determine the irrigated area in the gate-3 downstream of Nam Theun 2 dam as the
comprehensive rice production model area which is related to piloting urban development in rural areas or
new rural development. Xebanghieng plain focuses on Ban Veun village cluster, Huay Thuad and Souy areas
in Champhone District, Thalahanam and other potential and suitable areas in Savannakhet province. Xedon
plain focuses on Vapie District area and other potential areas of Saravane Province, and Champasack plain
focuses on piloted focal area of Nongbuathong project, Moulapamok district, Khong district, Pathoumphone,
Phonthong and other areas of Champasack Province. Among these large plains, there are Vientiane plain,
Xebangfai (Khammouane), Xebanghieng (Savannakhet), Xedon (Saravane) and Champasack plains
determined as the national focal rice plantation project which include in 10 provinces of the National Rice
plantation for Food Security to ensure the production of at least 2.5 million tons paddy rice (600,000 tons
exported in 2015). The potential 10 provinces are included Vientiane Capital, Luang Namtha, Bokeo,
Xayabouly, Vientiane, Bolikhamxay, Khammouan, Savannakhet, Saravane and Champasack with total paddy
field areas of about 600,000 hectares. But Sekong is not in the list of rice production strategy of government
due to its production has no rice surplus, just for food production purpose.

2.2 Vegetables commodity:
Plain areas: the production of vegetables shall reach 600,000 to 800,000 tons, especially the Vientiane plain
shall focus on Hadxayfong District, Sikhottabong District, Naxaythong District, Thulakhom District and others;
Xebangfai plain shall focus on Xebangfai District, Nongbok District, Thakhek District; Xebanghieng plain shall
focus on Xayphouthong District, Songkhone District, Champhone District, Kaisone District; and Champasack
plain shall focus on Phonthong District, Champasack District. Carry out the implementation on the direction
that building rural areas to produce crops and vegetables to supply to cities/towns, tourist areas and
infrastructure development projects that have high potential; avoiding the supply of crops and vegetables
from towns to rural areas.
2.3 Crop Diversification:
Beans/Legumes, Fruit trees, and vegetables identify as crop diversification. For beans/legumes, in the
mountainous and plateau areas: for groundnuts/peanuts and soybeans shall focus on Bachieng Chaleunsouk
District of Champasack Province to produce 80,000 tons with land areas of 40,000 hectares or 60% of
vegetable plantation land throughout the country. In the plain areas: particularly Vientiane plain focuses
on Thulakhom, Phonhong, Sangthong, Hadxayfong Districts, Khammoune Province focuses on Thakhek,
Nongbok Districts, Savannakhet Province focuses on Kaisone Phomvihan, Champhone, Songkhone Districts,
Saravane Province focuses on Lao Ngam, Saravane, Vapie Districts, and Champasack Province focuses on
Bachieng Chaleunsouk District. Majority of crops are ground nuts, beans and green beans. The estimated
average annual plantation area is 27,000-30,000 hectares and an estimated product on annual average is
54,000-60,000 tons.
Fruit trees, in the mountainous and plateau areas: include oranges; focus on Kasy, and Vang Vieng Districts of
Vientiane Province. In addition, other fruit trees focus on areas that have potential and long cultivation
practice and focus on special fruits available in those areas with total expected products of 300,000 to
450,000 tons or 30% of total fruits production throughout the country. In the plain areas: for fruit trees, shall
focus on the promotion of plantation in the potential areas such as custard apple, coconuts, rambutans,
durains, longans, mangos will focus on Saravane and Champasack Provinces. In addition, for other fruit trees
will also focus on the areas where high potential have and suitable conditions with expected products would
be 700,000 to 1,000,000 tons or about 70% of total fruit production throughout the country.
2.4 Other potential crops could be added by project implementation team:
After few years of project implementation period, the provinces could take other crop as needed following
Maize, Silk, honey, etc.

2.5 Irrigation Infrastructure Development: the focal areas of irrigated Agro-irrigation development are
crucial component to ensure the supply of water for production in 2 seasons a year as well as to handle with
climate change and reduce losses from natural disaster that may occur, aiming at supporting food production
and agriculture goods production goals, in the future, it shall focus on the implementation of irrigation
program in connection with the rule of law on irrigation ensuring that the production is in line with the
defined agro-irrigation program. The MAF’s strategy targeted by 2020, shall supply sufficient water as
planned for rainy season production of 330,000 hectares and dry season production of 216,000 hectares and
by 2025 ensuring the supply of water for rainy season production at least 355,000 hectares and dry season at
least 240,000 hectares by focusing on the improvement of workhead, canal, improve from soil canal into
cement/concrete canal, improvement and modernization of water pump stations, continue to build irrigation
reservoir and water gate in order to use water released from the powerhouse of hydropower in the
downstream areas that have suitable conditions. Given priority to the gravity system of waterflow of
irrigation or taking into consideration the construction of irrigation in the form of self-flow of water as the
priority; the use of water pump machinery as the secondary option in parallel with the use of other potential
renewable energy gradually. To ensure such targets, development focal areas have been determined in 10
provinces, by 2020 and 2025 as the followings:
 For the irrigation projects that serve the rice production for food security and agriculture commodity
production projects, which the government has designated 10 provinces as the production focal
zones shall focus on the improvement of existing irrigation system of 6,953 projects which could
supply water in rainy season of 196,900 hectares, dry season 118,500 hectares.
 Continue to construct irrigation projects that have been studied, surveyed-designed and signed
contract of 33 projects to ensure that by 2020 they would supply water for rainy season production
of at least 254,000 hectares, dry season 161,350 hectares and by 2025 could supply water for rainy
season production of at least 279,450 hectares, dry season production 184,100 hectares.
 By 2025, it shall ensure the supply of water for two seasons in 10 focal provinces not less than
463,500 hectares.

3. Value chain province:
The provinces of Lao PDR have three areas connected to the GMS transport corridors being Sekong,
Champasak, Savannakhet, Khammouane, Bolikhamxai, Vientiane, Luangprabang, and Oudomxai (Central
Economic Corridor), Savannakhet (East West Economic Corridor), Houaphanh and Xiengkhouang (North
Eastern Economic Corridor). See map below:
During the provincial consultation forums were taken place on March 2016, the target areas for rice and
vegetables have risen up with good argument. Those target areas cover irrigation scheme including of land
leveling for rice field, road access, and existing rice and vegetables producer groups with good progress of
Good Agriculture Practice (GAP) standard it seems to be obtained an Organic Agriculture (OA) sooner. There
is private sector having been involving in the value chains with advanced models of rice mill, vegetables hub,
and bio-fertilizer plants. The lists of target areas are shown in the map below.
Figure 1- Economic Corridors Map
East West
Corridor
North Eastern
Corridor
Central
Corridor

For the value chain provinces, the Khammouane, Savannakhet and Saravane provinces were selected on the
basis of their rice total production and available surpluses for domestic marketing and export. The provinces
of Vientiane, Champasack, and Sekong were selected on the basis of total annual vegetable production,
presence of replicable business models and their proximity to the EWEC project. During the provincial
consultation workshops carried out in March 2016, both rice and vegetables proposed to do by local
authorities since the five year work plan and strategy already included for each province. In conclusion, the
value chains consist of 20 potential districts for rice and 8 potential districts for vegetables.
Figure 2- Proposed Target Area’s Map

3.1 Provincial poverty status: The national poverty rate in Lao has declined steadily, having dropped by 40
per cent over the period 1992/93 to 2007/08. In terms of the international poverty line, Lao PDR shows a
one-third decrease in poverty rate over the same period. The country has also seen a steady reduction in the
poverty gap and poverty severity over time. The overall assessment is that Lao PDR is well on track to
achieving the poverty target, or has already achieved this target. Subnational analysis shows that poverty
rates have declined across nearly all population groups over the 15-year period. Even so, the poverty rate in
rural areas is still almost twice that of the urban areas, with mountainous areas and upland villages showing
the highest incidence of poverty. The districts and villages targeted by the government’s National Growth and
Poverty Eradication Strategy (NGPES) have seen significant reductions in poverty. On the other hand, the
poverty gap analysis shows that the poor in geographically disadvantaged areas are poorer than the poor
elsewhere. The severity of poverty has declined amongst most groups but has increased amongst the poorest
in the 2002/03-2007/08 five-year period (MDG Progress Report for Lao PDR, 2013).
Table 1. Poverty line by provinces
Percentage of poor by provincial target areas
No. provinces 1992-93 1997-98
Annual rate in
decrease of
poverty
2002-03 2007-08
Annual rate in
decrease of
poverty
1 Vientiane province 28.1 24.3 -2.9 19.0 28.0 N/A
2 Khammouane 43.7 41.6 -1.0 33.7 31.4 N/A
3 Savannakhet 45.7 37.1 -4.2 43.1 28.5 N/A
4 Saravanh 36.7 39.6 1.7 54.3 36.3 N/A
5 Champasak 43.6 35.6 -4.1 18.4 10.0 N/A
6 Sekong 65.9 45.7 -7.3 41.8 51.8 N/A
Total 44.0 37.3 35.1 31.0
Source: NGPES, December 2004 and updated for 2015
In the table1 Champasak province has the lowest number of poor people (189,000), Savannakhet is the
province with the fair number of poor (264,000), while Sekong has the highest absolute poverty incidence.
3.2 Vientiane Province is located in the central of Laos, far from Vientiane capital around 85 kilometers. It
has total area of 22.554 square kilometers 2/3 of the land is mountainous and 1/3 is land field. It shares
border with another provinces such as: Luangprabang to the north, Xiengkhouang to the north east,
Bolikhamxay to the east, Vientiane capital city to the south, Sayabouly to the west and Loei
province (Thailand) to the south west which 97 kilometers length. As of 2015 the provoince has a total
population of 419.100 people, female 207.700 people. The number of households is 69,128 of which 17% are
female headed households. Vientiane province consists of 13 districts like: Thoulakhom District, Viengkham,
Keooudom, Phonhong, Hinheurb, Vangvieng, Kasy, MeuangMad, Meuang Feuang, Sanakham, Xaysomboun,
Hom and Meuane District. The capital city of Vientiane province is Viengkham district. The demographics for
ethnic breakdown in 2015 were: Lao 65%; Hmong 17.77%; Kmu 417.04%; foreign minority 0.20%. Several
kilometres to the south of Vang Vieng is one of Laos's largest lakes, Nam Ngum. Much of this area,
particularly the forests of the southern part, is under the Phou Khao Khouay National Bio-Diversity
Conservation Area. The principal rivers flowing through the province are the Nam Song River, Nam Ngum
River and the Nam Lik River (Provincial statistic, 2015).

Provincial strategically development plan is focusing into four districts of Phon-Hong, Hinheurb, Vang-Vieng,
and Kasy aligns the economic corridor on the Km13 north. The tobacco factory and rubber processing plant
located in Hinheurb district, large orange production located in Vang-Vieng and Kasy district for domestic
market. And for tourism industry is the Vang-Vieng district. And 4 districts of MeuangMad, Meuang
Feuang, Sanakham, Xaysomboun, and Meuane are developed as west corridor, the main commodity is
cassava value chain that produce in 5,261 ha and 132,034 tons regularly supply to processing factory in
Meuane district. And 55,317 tons of jobs tear production (15,411 ha) also predominant for export market to
Thailand through customary check point at Vang village (interview Mrs. Singkham Khongsavanh, Vice
provincial governor and Mr. Soukan Vilaylath, Deputy head of Department of Planning and Investment).
Table 2 - Vientiane Province’s commodities: area, yield and production
Commodity
Planted Area (ha) Harvested area (ton) Yield (ton/ha) Production (ton)
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Vegetables 22,570 8,815 11,395 22,570 8,815 11,395 7.31 9.44 7.91 165,050 83,185 90,105
2. Rice 66,702 66,040 65,923 65,716 64,620 65,923 4.12 4.32 4.57 270,850 279,110 301,010
3. Orange N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Source: Department of Agriculture, 2015
The Vientiane province is 1 out of 10 potential provinces that government of Lao PDR targets producing rice
for export market. In Vientiane plain, the focal areas are included: Nam Mang-3 (gravity system of self-flow
water as a priority of government for irrigation construction, and it’s recommended for CFAVC project), Nam
Xuang, Nam Houm, Tha Ngone flat area, Dong Pho Sy, Tha Pha–Nong Phong; by improving productivity up to
5 tons/hectares. The rice production pattern consists of irrigated rice farming, rainy rice farming, and upland
rice farming. The planted area and production for 2015 were: 9,090 ha (42,700 tons); 52,375 ha (251,555
tons); and 5,162 ha (12,314 tons) respectively (Interview Mr. Lamphone Khambounheung, head of DAFO).
Number of rice mill is approximately 200 rice mills. The one state owned rice mill lending by the Ramir Vision
4-Isarael company, the concession MOU was signed in November 2015 between Department of Industry and
Commerce and Ramir Vision 4-Isarael Company (interview Mrs. Sirikarn Cohend or Mrs. Nok, as the investor),
she prefers to buy TDK8-glutinous rice from farmers and export 1,000 tons of milled rice to Israel. Currently
her rice mill’s capacity is updating 15 ton/day for full rice service mill and 300 ha of rice production area are
ready to supply by farmers of Nasae, Phonkham, Thaduea, and Kokkieng village, Keo-Oudom district.
According to field visit in June 2016, Mr. Souvath Kethsattha, farmer leader of organic rice in Nafai village,
Phon-Hong district, he was contact to rice mill above and interest to sell organic paddy to rice mill due to
price is attractive 2,600 kip/kilogram, but the irrgitaion cannot support to whole rice field as needed.
Figure 3- Field trip and rice focal group discussion in Vientiane province
State owned rice mill in Phon-
Hong district
Rice farmers in Nafai village Nam Mang3-Nampod irrigation
concrete canals

The vegetables production, the promotion of commercial crop production is focused on marketable
commodities such as: baby corn, egg plants, long bean, lettuce, cabbage, tomato, hot chilli, cucumber,
banana, water melon, and leafy vegetables produce for domestic and export markets in a total amount of
billion kip per year (PAFO report, 2015). During the field visit, there are 7 out of 59 villages in Phon-Hong
district growing vegetables for domestic and export markets, those villages are: Phon-Ngam (organic), Lak52
(organic), Ekxang (GAP), Nalao (GAP), Saka (Organic/GAP), Navon (Organic), Noi (Organic). There are three
main local collectors known as women traders bought vegetables from farmers and sold to Vientiane capital
markets.
Figure 4- Field trip and vegetables focal group discussion in Vientiane province
Vegetables farmers dialogue and
gender analysis
6-14 green house per household
could be commercial
Ekxang ground water irrigation for
vegetables production
In thoulakhom district, Poungphao village is an excellent vegetables farmer group that used to be support by
the Small Holder Project. 10 out of 46 household shows well organized marketing group by linking vegetables
to organic market in Vientiane capital (three times per week) that support by JICA. Currently the JICA build
organic super market in Km8 to help farmers market moving on. According interview Mr. Khamson farmer
leader report that 4 ha of land was given by village of Poungphao to demonstrate organic vegetable
production, 126 green houses built, approximately 6-14 green houses per one household responsible for
growing whole round year vegetables (no rice farming at all). They started since 2010 and earned income of
200 million kip (25,000 USD) and this year of 2015, in the amount of 75 tons sold out and this group earned
income of 800 million kip (100,000 USD). All household have own trucks and deal vegetables value chain from
production until marketing.
Vientiane province has a total irrigation of 970 schemes, the total irrigated are is 52,596 ha; therein 14,467
ha is able to supply water for dry season. There are 7 categories of irrigation type. 99 weirs, 43 Indian pumps,
19 reservoirs, 11 water gates, 149 soil weirs, 51 gabion-weirs, and 590 traditional weirs. The water users
‘groups are formed and fee collection is 30,000 kip per ha that it’s reasonable for irrigated rice farmers.
Table 3. Irrigation to be repaired for crop production
No. Irrigation scheme
No. of
village
Irrigated area ( ha )
No. of household
Total cost
(USD)Rainy season Dry season
1 Nam Chim 03 300 150 127 562,000
2 Nam Xouang 2 CP 07 600 550 260 454,000
Total 10 900 700 387 1,016,000
Note: this cost is excluded for design and survey.

During the focal group discussion, there are two schemes proposed into the plan that need to be improved
the existing schemes, and rehabilitate canals or improve soil canals to concrete canals that propose in the
table 3. Mr. Lom Phanvongsa the deputy head of irrigation section said, Nam Chim and Nam Xouang 2 CP are
very crucial schemes to expand irrigated area and increase twice rice and vegetables production for 387
households.
The number of people that have work associated with agriculture is 123,118 or 28.47% of the provincial
population. The complement of the PAFO strategy plan, there are 588 staff members (135 females) go and
support districts and village clusters, and 74 staff members (29 females) work for agricultural extension
services to farmers.
3.3 Khammouane Province is located in the central part of Lao PDR and covers a total area of 16,315 Km2
(7% of Laos, about five times the size of Luxembourg). Khammouane shares borders with Savannakhet
province in the South, Bolikhamxay province in the North, Vietnam in the East and Thailand in the West. The
province can be divided into three main geomorphological areas: (1). the mountainous area (35% of the
province) in the northern part with the districts of Nakai, Gnommalath and Boualapha; (2). the plateau area
(20% of the province) is located at an altitude between 300 to 700 m consisting of Thakek, Hinboun,
Nongbok, Xebangfai, Mahaxai and Xaibouathong districts, and is targeted for agro-forestry and industry tree
plantation, and; (3). the lowland area (45%) covers flat areas along the Mekong River with fertile soil and
suitable for rice and industrial crop production.
The province has a total population of about 392,100 people out of which 197,300 are female The number of
households is 61,505 of which 21% are female headed households. The population grew in average 1.5% per
year between 2005 and 2015. There were 74,500 households in Khammouane province with an average size
of 5.1 (compared to 5.8 in 2005). The population density has increased 20.7 persons/km2 (in 2005) to 24
persons/km2 (in 2015) but it still remains below the national average. Three main ethnic groups in the
province account for 94% of the population: Lao (69%), Phouthay (12%) and Makong (13%), the remaining 6%
belong to a diversity of ethnicities. According to DoNRE’s classification, current land use comprises of mainly
forest area (64%) whilst the remaining is agricultural, industrial land and water bodies. The climate is
characterised by a dry and a rainy season and the average rainfall is ca. 2,600 mm per year. The Nam Teun
and XeBangFai form the two major river systems, flowing from the Anamite Mountain Range to the Mekong.
Nam Teun 2 hydropower, the largest hydropower project in the country, is located at the base of the Nakai
plateau.
Khammouane comprises nine rural districts (Boualapha, Gnomalath, Hinboun, Mahaxai, Nakai, Xebangfai,
Thakek and Xaibouathong) plus Thakek and, until 2005, 803 villages. Since then, the provincial authorities
have reduced the number of villages to 580. In addition, several villages are combined into 79 village
development clusters (Kum Ban). Out of the nine rural districts, only Boualapha and Nakai are classified as
“poor” based on the usual five criteria. Until 2011, Mahaxai was considered being “poor”. The choice of
Boualapha and Nakai as priority districts is obvious, supported by a poverty incidence of 25% and 27%
respectively. The villages selected fall in both districts into the category “poor”. All districts saw a quite
successful reduction of poverty, i.e. individuals, households and consequently villages benefited from
improved infrastructure and income. Lao statistics display three categories of households, (i) poor, i.e. below
the poverty line, (ii) graduated from poverty, i.e. above the poverty line, and (iii) developed (the
characteristics could not be established). In discussions with PPID and the Department for Rural Development
and Poverty Eradication, both institutions considered households in the second category “very vulnerable” to

slipping back below the threshold. 5 400 (83%) of all households in Mahaxai are in this group, in Nakai 50%,
and in Boualapha 62%. The three districts share also a rather low proportion of developed households. The
decision to incorporate Mahaxai into the project is based on this analysis and reflects the changes in the
province’s social composition.
Table 4 - Khammouane Province’s commodities: area, yield and production
Commodity
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Rice 71,499 74,130 85,519 71,499 70,345 82,828 3.56 3.97 4.56 254,775 279,020 378,020
2. Vegetables 6,495 7,645 7,014 6,495 7,645 7,014 5.60 8.22 7.49 36,380 62,825 52,535
3. Fruit trees
with legumes
2,390 2,600 2,579 2,390 2,600 2,579 7.50 7.41 7.16 17,935 19,255 18,470
4. Tobacco 920 700 960 920 700 960 11.29 9.36 10.35 10,385 6,550 9,940
Commercial rice production in Khammouane is located in the large plain of Xebangfai area. The Xebangfai
plain includes Xebangfai and Nongbok districts, downstream area of Nam Theun-2 (gate 1-2, gate 3, gate 4-5)
Nyommalath and Mahaxay Districts, Hinboun District of Khammoune Province. A total rice production in
2015 is 78,052 ha (12,470 ha of irrigated rice production) with annual production of 310,400 ton (15% of
production from irrigated rice in dry season). The provincial stockpile is 407 kg/person/year. In the province
consists of 7 rice miller groups deal contract farming with farmers such as: rural rice mill group, mountainous
rice mill group (Mrs. Nipha), Khammouane rice mill group, Thakek rice mill group, Nongbok rice mill group,
Hinboun developing rice mill group, and Khounkham developing rice mill group. Each rice mill group
promotes rainy and dry season rice production in 15-120 villages.
Figure 5- Field visit and having a rice focal group discussion in Nongbok district, Khammouane province
Road and irrigation construction
exist and covered 170 ha
10 villages officially involved
commercial rice production
200 ha of land allocated for rice
production in Nongbok

The commercial vegetables production in Khammouane, government of Lao PDR prioritizes in Xebangfai plain
area that consists of Xebangfai District, Nongbok District, and Thakhek District. Thakek is a capital city of
Khammouane that requires 20 tons a day of vegetables, 80% produced by Lao gardening farmers and 20%
import from Thailand. Main producers in Thakek district were Mouangsum, Nameuang, Thaduey, Houay
Nangli, Tha Ngam, and Donmalai village have been growing vegetables along Mekong river bank. During the
field visit, the PPTA team interviewed Mr. Phounsy Sengsomphou as vegetable farmer leader in Mouangsum
village, Thakek district. He has been growing vegetables 3 ha in the Mekong river bank; the majority crops are
Chinese kale, Chili, and Egg plants that regularly generate income 123,000,000 kip (US$ 15,375) per year, two
water electric pumps use sufficiently for thee hectares.
The Lao-Japanese cucumber (KP & Japan) company started promoting cucumber value chain in Khammouane
since 2007 until nowadays, currently the KP & Japan company has been investing 500 ha and make contact
farming 2+3 to farmers in Dongmakba, Thako and Kengpae village (Xebangfai district), Xiengkhai village
(Xaybouli district), and Phonphaeng and Pongkiew village (Nongbok district). Farmers grow Japanese
cucumber (long green variety) in the same plot of rice in December after rice harvesting, three months can be
harvested and fermented cucumbers within 12 hours after picking from farm, and fermentation takes 3-6
months. Japanese market requires more than 1,000 tons per year from Lao PDR but only 600 tons exported
in 2015 (reported by Mr. Khambai Philadeth, representative of KP & Japan Company in Khammouane).
Table 5. Irrigation canals need to improve from soil canals to concrete/bricks canals
No. of
village
Irrigated area ( ha ) No. of
household
Total cost
I Nongbok district
1 Sadue-nuea canals 1 600 600 174 750,000
2 NawangYai canals 1 200 200 157 250,000
3 Na-Tai canals 1 150 150 178 187,500
4 Xongbo canals 1 400 400 153 500,000
5 HatSayfong 1 300 300 98 375,000
6 Pak-ei-Tou 1 200 200 112 250,000
7 Nongbok project 1 300 300 144 375,000
II Xebangfai district
1 Napoktha canals 1 200 200 68 250,000
2 Kaengpae canals 1 150 150 57 187,500
3 Thakor canals 1 150 150 62 187,500
III Hinboun district
1 NongHoi canals 1 200 200 54 250,000
2 Phonmen canals 1 200 200 71 250,000
3 Vanghuapa canals 1 200 200 52 250,000
4 Nongkhoun canals 1 200 200 63 250,000
5 Napho-Thakhaen 1 200 200 59 250,000
Total 15 3,650 3,650 1,502 4,562,500
Note: the some design survey and cost are available at Irrigation section, Khammouane-PAFO.

3.4 Savannakhet Province is the largest province, covering an area of 21,774 square kilometers (8,407 sq mi),
the province is located in the southern part of the country and is the largest province in Laos. It borders
Khammouane Province to the north, Vietnam to the east, Saravane Province to the south, and Nakhon
Phanom and Mukdahan provinces of Thailand to the west. The Second Thai–Lao Friendship Bridge over the
Mekong connects Mukdahan Province in Thailand with Savannakhet in Laos. Its capital, Savannakhet, also
known as Kaysone Phomvihane or Muang Khanthabouly is Laos' second most notable city after Vientiane. It
forms an important trading post between Thailand and Vietnam. Along with Bolikhamsai and Khammouane,
Savannakhét Province is one of the main tobacco producing areas of Laos. It has numerous natural resources.
Sepon district is the largest mine in Laos, with reserves of copper and gold.
The province is made up of the following 15 districts: Kaysone Phomvihane, former Khanthabouly,
Outhoumphone, Atsaphangthong, Phin, Sepon, Nong, Thapangthong, Songkhone, Champhone, Xonnabouly,
Xaybouly, Vilabouly, Atsaphone, Xayphouthong, and Phalanxay district.
The population of this largest province of Laos is 969,700 (489,000 females) as of the 2 December 2015
census, spread over 15 districts. The number of households is 131,216 of which 25% are female headed
households. The ethnic minority groups residing in the province include Lao Loum, Phu Tai, Tai Dam, Katang,
Mongkong, Vali, Lavi, Souei, Kapo, Kaleung and Ta Oi. However, in the 2000 census, only three ethnic groups
were listed: Lao Loum (Lowland Lao), Phu Tai, and Bru. The Bru, however, are a diverse people with various
dialects and cultures.
Referring to long term strategy by 2030, the Xebanghieng plain is main area of rice production, the
Savannakhet strategy focuses on Ban Veun village cluster, Huay Thuad and Souy areas in Champhone District,
Thalahanam and other potential and suitable areas in Savannakhet province. The province is able to produce
819,735 tons per year of paddies in rainy season rice farming which it covered 199,940 ha, and irrigated rice
farming produced in 2015 was 124,450 tons of paddies per year that covered 33,000 ha. Due to the focal
areas of agro-irrigation scheme supplied water only 5,000 ha, general irrigation schemes covered 28,000 ha,
and no irrigation is 166,940 ha. Rice mills in the province consists of 1,143 rice mills where wet paddies
collected and mill for good quality of milled rice by four commercial rice mills (IDP rice mill located in Nasop.
IDP rice mill located in Khuadam, Siewlinda rice mill and Kasethlao rice mill to buy wet paddies from farmers,
small rice mills, and collectors aiming export milled rice to China market (15,000 tons/year) and European
market (1,445 tons/year).
The provincial strategy by 2016-2020, commercial rice production will promote 10 potential districts such as
Champhone, Xaybouli, Songkhone, Xonnabouli, Xayphouthong, Kaison phomvihan, Outhomphone,
Atsaphone, and Atsaphangthong. Nowadays 171 rice production groups were formed and 4,275 HHs
registered with high engagement from Siewlinda rice mill, Lao-World rice mill, SKAI Company, rice mill
groups, and various financial institutes.

Figure 6- Field visit and having a rice focal group discussion in Xaybouli district, Savannakhet province
Work-head and main canals need
to be repaired
Farmers grow rice commercially
and supply to 4 rice mills
Two IDP rice mills exist, its capacity is
15-20 tons per hour
The vegetables production found on areas of Xayphouthong District, Songkhone District, Champhone District,
and Kaisone Phommvihan District in the Xebanghieng plain. Currently the province completed forming 10
organic vegetables producer groups, 156 households registered in five initiatives districts such as Kaison
phomvihan, Xaybouli, Xayphouthong, Atsaphangthong, and Phalanxai. 140 greenhouses built and will expand
gradually 40 green houses from year to year, the seed bank established with 2,500 kilograms using as
revolving fund. The member received regular training 180 times per year on vegetable growing technique;
compose making, Bio-extract herbal pesticide, and Effective Micro-organism (EM).
Figure 7- Field visit and vegetable focal group discussion in Kaison phomvihan district, Savannakhet province
Organic vegetables growing by 9
farmer groups
7 active HHs growing organically
and sold direct market
Organic markets have been
expanding to provinces

Table 6 - Savannakhet Province’s commodities: area, yield and production
Commodity
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Rice 205,820 212,840 217,178 205,820 202,565 209,865 3.67 3.78 4.34 755,654 766,030 911,325
2. Vegetables 11,440 13,150 18,630 11,440 13,150 18,630 7.01 6.52 5.49 80,240 85,780 102,215
3. Fruit trees
with legumes
6,910 8,160 9,775 6,910 8,160 9,775 6.65 6.35 5.32 45,945 51,825 51,970
4. Tobacco 1,200 1,150 970 1,200 1,150 970 12.44 10.46 8.44 14,925 12,030 8,185
Source: Department of Agriculture, 2015. Tobacco, Fruit trees with legumes are possibility crop could be
added during project implementation period.
According to the EWEC project’s implementation plan for 2016-2020, the ADB 3024-LAO AISP/EWEC project
in Savannakhet province has 15 irrigation construction projects that it’s going to be built 12 pumps, 2 gravity
irrigation schemes, and 1 water gate. In addition, the province proposes some existing irrigation schemes to
be repaired for CFAVC project that’s shown in table 7 below.
No. of
village
No. of household
Total cost
1
Pongna irrigation:
dynamo, pumps,
75 kw
thermometer,
pipes, canals,
Atsaphanhthong
district
1 100 40 88 37,500
2
Somsaat 1:
dynamo, pumps,
75 kw
thermometer,
pipes, canals ,
Saybouli district
1 200 200 126 100,000
3
Naxiengkhan:
canals, Saybouli
district
1 80 80 55 37,500
4
Nong hua thong:
canals, Saybouli
district
1 80 80 62 37,500
5
Thapho: 75 kw
thermometer,
pipes, canals,
Xayphouthong
district
1 150 150 93 68,750

6
Nongduan: canals,
Songkhone district
1 50 50 79 43,750
7
Visaysong: canals,
Songkhone district
1 50 50 64 43,750
8
Thongbaklak4 (1):
canals,
Champhone
district
1 150 150 76 62,500
9
Phaleng 2 canals,
Champhone
district
1 150 150 63 37,500
10
Houayxay canals,
Champhone
district
1 150 150 58 37,500
11
Nongbualao
pump, reservoir,
and canals,
Xonnabouli district
1 80 80 81 106,250
12
Xieng-Hom 1
canals, Xonnabouli
district
1 80 80 73 37,500
13
Naholuang canals,
Xonnabouli district
1 80 80 67 37,500
14
Pumps repairing in
the province
? 100 100 158 37,500
Total 13 1,500 1,440 1,143 725,000
Note: this cost is excluded for design and survey.
3.5 Saravane Province is located on the south western Lao PDR, near the borders with Thailand and
Cambodia. The province covers an area of 15,415 square kilometres (5,952 sq mi). It is bordered by Saravan
Province to the north, Sekong Province to the northeast, Attapeu Province to the east, Cambodia to the
south, and Thailand to the west. The river Mekong forms part of the border with neighbouring Thailand and
contains Si Phan Don (Four Thousand Islands) in the south of the province, on the border with Cambodia. is a
province of Laos, located in the south of the country. Its earlier name was Saravan which was changed by
Thai to Saravan in 1828. It was part of the Champasak Kingdom in an area known as Muang Mang inhabited
by minorities of Mon-Khymer groups. The Saravan Province covers an area of 16,389 square kilometres
(6,328 sq mi). The province borders Savannakhét Province to the north, Vietnam to the east, Xekong Province
to the southeast, Champasak Province to the south and Thailand to the west. The central part of the province
is located on the Bolaven Plateau, which is a key agricultural area with Arabica coffee as the dominant cash
crop. The western part of Saravan province is delimited by the Mekong River while the eastern part is
delimited by the Lao-Vietnamese border.

The population of the province as per 2015 census was 397,000 (201,300 females) distributed over eight
districts. The ethnic groups in the province comprise the Tahoy, Pako, Katang, Kado, Suay and Laven. The
number of households is 53,013 of which 15% are female headed households.
The province is made up of the following eight districts: Saravan, Ta Oy, Toomlarn, Lakhonepheng, Vapy,
Khongsedone, Lao Ngarm, and Smuoi district.
The majority of rice production area in Saravane province consists of four plain areas of Khongxedon,
Lakhonpheng, Vapie, and Saravane. The large land leveling of rice field is Vapie district as the model rice
farming. The province reaches 1,700,000 tons of annual rice production in 2015, the self-consumption is
151,993 tons, the stockpile kept 238,200 tons of paddies in case of flooding and drought occurred whole
round year. The province strategy targets to export rice 267,805 tons of paddies, and produce 6,757 tons
(that requires 112,629 ha of land area) of rice seed for distributing to rice farmers (interview Mr. Anousack
Champakham, head of Saravane-PAFO). A total of 71 agricultural farmer groups including rice and vegetables
were formed, most of rice farmers grow 70% of glutinous rice with seed varieties of TDK1, TDK8, TDK11, PN3,
and 30% growing non-glutinous rice known as Hommali (Thai jasmine rice variety). As selected interviewee
Mr. Somphone Phattaphong is rice farmer group leader in Thanako village, Saravane district. He used 80 kg of
seed per hectare of rice growing; he got 5 tons of yields. 90% of rice farmers owned hand tractor, manual
transplanting, and use the services of combined harvester (paid 10 bags in each 100 bags of wet paddies).
13% of rice farmers grow irrigated rice farming where irrigation schemes exist.
Figure 8- Field visit and having a rice focal group discussion in Saravane district, Saravane province
Model farmer in Vapie district
adopted advance technique
Saravane farmers received training
on mechanical transplanting
70% of rice farmers use the
service of combined harvester

Table 8 - Saravane Province’s commodities: area, yield and production
Commodity
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Rice 87,525 83,690 90,722 86,973 68,430 83,478 3.51 3.64 4.37 305,121 249,090 364,880
2. Vegetables 7,875 6,615 10,460 7,875 6,615 10,460 6.57 9.00 8.02 51,720 59,505 83,895
3. Fruit trees 3,025 2,615 4,390 3,025 2,615 4,390 7.31 9.95 9.62 22,115 26,025 42,245
4. Honey N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
The vegetables production found mainly in the Lao Ngam district, in the year of 2015 the district produced
49,000 tons of root, bulb, and tuberous crop, 19,000 tons of fruits, and 23,318 tons of vegetables (reported
by Mr. Phonxay as head of agriculture section). Importantly, there is a huge production of cabbage, Chinese
kale, pak choi, long bean, chili, egg plants, cucumber, and mints. Vegetable producer groups were formed in
five villages namely Phoukham village (20 HHs), Houayseng village (6 HHs), Nongtom village (18 HHs), Pork
hem village (27), Daxianoi village (14), and Len village (35 HHs). According to interview Mr. Khamphan the
active vegetables farmer, he grows 3 hectares of vegetables for domestic and export markets based on the
model of 2+3 contract farming, trader provided him 30% of cash advance, seeds, and bio-fertilizers. After
harvesting he can earned money 155,000,000 Lao kip (19,375 US$ per crop cycle), meaning that he grows
three crop cycle per year. Therefore, many of farmers are affordable to buy truck and transport vegetables to
Lao-Thai border and main domestic markets.
Figure 9- Field visit and having a vegetables focal group discussion in Lao Ngam district, Saravane province
Sprinklers, pipes, depth pumps,
diesel engines-17 horse power
Vegetables growers bought
imported seeds
Traders bought vegetables from
farmers at farm gate
In the potential plain area of Saravane, majority of fruit trees promotion that usually people growing
integrated with vegetables, rice, fishpond and coffee are custard apple, coconuts, rambutans, durians,
longans, and mangos. And 40% of farmers have separated plot of land to grow this fruit trees.

Table 9. Irrigation to be repaired for crop production in Saravane province
No. of
village
No. of household
Total cost
1
Nongdeng weir
and canals in Xe-
set river
1 2,255 31 1,072 5,625,000
Total 1 2,255 31 1,072 5,625,000
Note: the cost of design and survey are not available, it needs to talk to Irrigation section, Saravane-PAFO.
Totally provincial irrigation has capability to supply water approximately 15,000 ha, thanks to 153 irrigation
schemes, 47 weirs, 14 reservoirs, 87 pumps (electric and diesel), and 5 traditional dams. By improving
infrastructure, there were five irrigation schemes completely survey and design namely Kengsan, Xekon-
Xetanouan, Xedon 3, Houay Namsai, and Xelamang. But some schemes still need to rehabilitate weirs, work-
head, and cannals in or der to ensure water efficiency and productivity that benefit to small holder farmers as
well (Reported by Mr. Kipachanh, head of irrigation section). In addition, under ADB 3024-LAO AISP/EWEC
project, Saravane province has 10 irrigation construction projects that it’s going to be built 6 pumps, 3 dam,
and 1 weir during 2016-2020.
3.6 Champasak Province is located on the south western Lao PDR, near the borders with Thailand and
Cambodia. The province covers an area of 15,415 square kilometres (5,952 sq mi). It is bordered by Salavan
Province to the north, Sekong Province to the northeast, Attapeu Province to the east, Cambodia to the
south, and Thailand to the west. The river Mekong forms part of the border with neighbouring Thailand and
contains Si Phan Don (Four Thousand Islands) in the south of the province, on the border with Cambodia.
The province had a population of 694,000 in 2015; women were approximately 51.17% of the total
population. Males under 20 years number 152,865, females over 20 years are 200,738. The number of
households is 126,456 of which 18% are female headed households.
There are many ethnic groups in Champasak province comprising of Chieng, Inthi, Kaseng, Katang, Katae,
Katu, Kian, Lavai, Laven, Nge, Yahern, Oung, Salao, Xuay, Trang and Ta oy. Most of Majority of the population
does their agriculture production such as: rice, vegetable and local fruits including economic plantation such
as coffee, tea and rattan.
Currently, the province has only 10 districts with a total area of 15,350 km2 and those 10 districts are: Pakse,
Xanasomboun, Bachiengchaleunsouk, Pakxong, Pathoumphone, Phonthong, Champasak, Soukhouma,
Mounlapamok and Khong.

Coffee production is the dominant crop and consists of 49,895 hectares under production in 2015 growing in
the Bolavene plateau in Pakxong and Bachiengchaleunsouk district, the Champasak province. However the
province has the potential to produce agro-industrial crops such as rice, vegetables, cashew nut, cassava,
maize, fruits, soybean, and rubber. For the Champasak province, Coffee is not priority for CFAVC project.
Since the Government of France signed a bilateral agreement with Lao PDR to strengthen this value chain up
to 2023. In the potential plain area of Champasak, fruit trees promotion shall focus on custard apple,
coconuts, rambutans, durains, longans, and mangos.
Table 10 - Champasak Province’s commodities: area, yield and production
Commodity
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Vegetables 11,920 41,715 34,960 11,920 41,715 34,960 9.93 11.24 10.84 118,350 468,970 378,810
2. Rice 119,621 122,757 125,555 118,054 112,462 124,190 4.45 4.00 4.34 525,670 449,650 539,000
Rice is one out of six key prioritised crop production growing in plain areas of Chapasak and Xedon which
consists of 114,416 ha for rainfed production and 10,220 ha for irrigated production in 2015. For the modern
rice farming, Champasak uses 15 tractors, 31,518 hands-tractors, 989 mechanical thrashers, 8 transplanting
machines, 74 seed drills, 8 combined harvesters, and 51 dryers. The province has 4,197 irrigation pumps with
capacity of 16 power horse and 20% is gravity irrigation. There are eight districts growing rice namely Pakse,
Xanasomboun, Pathoumphone, Phonthong, Champasak, Soukhouma, Mounlapamok and Khong. During the
field visit in June 2016, local authority recommended Phonthong, Champasak, Soukhouma, Mounlapamok
and Khong district for CFAVC project. Importantly, more than 552 rice mills buy paddy from rice farmers plus
six modernized rice mills export milled rice to international. Every year, the province sold out 130,000 tons of
milled rice to other provinces and border nearby. According to the analysis of Lao rice went to fair trade
market in EU countries via Thailand and Vietnam. Meaning that Lao PDR lose benefit 1,100 USD (transit in
Thailand), and 1,650 USD (transit in Vietnam) per one container.
Figure 10- Field visit and having a rice focal group discussion in Phonthong district, Champasak province
Rice Seeding plots prepares for
transplanting machinery
Pavina’s rice storage certified
as international standard
Seng Ar-thid rice mill is a model of
full service rice mill

Pakxong and Bachiengchaleunsouk districts mainly focus on coffee plantation and vegetables production. The
vegetables create stable income to farmers 20 million USD/year (interview Mr. Viengxay Sipaphone, deputy
head of PAFO in Chapasak province). This value chain has been employing contract farming with 21 provinces
of Thailand to export cabbage, Chinese kale, tomato, long-yard bean, chilli, pumpkin, lemon, etc. One of key
chain actor, reported by Mrs. Inpaeng Samuntee as the president of Pakxong Development Export-Import
Co.,ltd known as huge collector buys vegetables from 840 vegetables producers in Pakxong district in Lao PDR
and export to Ubonraxhathani market in Thailand. Currently she asks 50 ha of land concession near Wangtao
Lao-Thai border for vegetables transited market where vegetables hub will be employed (cool chains and
refrigerated trucks).
Figure 11- Field visit and having a vegetables focal group discussion in Pakxong district, Champasak province
Vegetable green houses in
Thongset village
Fresh produce packing house and
cold room
Wet market in Champasak
The Champask province has 12 reservoirs, and 4,197 Indian water pumps with 16 horse powers. The 262
water users ‘groups are formed and fee collection is 100,000 kip per ha that it’s reasonable for irrigated rice
farmers, the irrigated are is 17,546 ha for dry season and 20,915 ha for rainy season.
No. of
village
No. of household
Total cost
1 Bachieng &
Paksong Weirs
8 155 120 178 50,500
2 Water gates in
Soukhouma
1 211 182 304 120,000
3 Electric pumps
replacing Indian
pumps
7 232 177 89 233,200
4 Improving canals
for 45 work heads
3 87 53 129 157,500
5 Reservoirs
development
6 307 255 412 522,240
Total 19 992 787 1,112 1,083,440
Note: the design and survey were completely done.

Five major irrigation schemes will be invested 1,083,440 USD by 2016-2025 in order to ensure water use and
supply to 1,112 household who growing rice, vegetables, fruit trees, and other cash crop for food security
and market demand, the sources of fund could be FDI and ODA (interview Mr. Somboun Oudomsin as deputy
head of irrigation section, Champasak-PAFO).
Recently, the SNRMPEP supported by ADB-IFAD has been implementing the Public Private Community
Partnership (PPCP) known as contract farming. The Champasak province signed MOU with HoChiMinh Honey
and Coffee Company (Vietnam) in March 2016. The honey value chain proposed to add as third commodity
into CFAVC project (interview Mr. Sivone Sisomphou, PAFO officer). The Honey aims to be family industry
integrating coffee, cashew nut, rubber, and industrial tree plantation. 1,000 hives will be imported from
Vietnam for initial year and end of the year fifth 10,000 hives could be reached in Champasak, Sekong, and
Saravan province. For commercial purpose, bee keeping requires 50 hives per household could be
distributed. The honey classified as diversification activity to generate second source of farmers’ income.
3.7 Sekong Province is the second smallest province in Laos and also one of its poorest, covering an area of
7,665 square kilometres (2,959 sq mi). It is bordered by Vietnam to the east, Attapeu Province to the south,
Saravan Province to the north, and Champasak Province to the west. Sekong also has the smallest population
(114,341 as of 2015) and the lowest population density of any province (14 persons per square kilometres).
The number of households is 12,609 of which 12% are female headed households. It was created in 1984 by
splitting the Saravan Province and is the most diverse province in Laos with 14 ethnic groups. The Sekong
River, which divides the province, flows in a southern direction into Cambodia and is navigable for boats. The
river valley has fertile plains interspersed with paddy fields and fruit orchards. The Dakchung Plateau and Xe-
Xap National Biodiversity Conservation Area are among the areas under protection.
Sekong is ethnically diverse. Only about 3% of the population is ethnic Lao. The vast majority (97%) come
from one of at least 14 distinct ethnic minority groups. The Alak (21% of the provincial population), Katu
(20%), Tarieng (19%) and Nge/Krieng (11%) are the main ethnic groups. Within this broad family, the ethnic
groups of Sekong fall into two linguistic branches: the Katuic (including the Katu and the Nge/Krieng) and the
Bahnaric (Alak and Tarieng). Approximately 14,700 Katu live in the province. The Sekong is made up of the
following districts: Lamam, Kaleum, Dakcheung, and Thateng district.
The Sekong Province is one of the most important coffee producing areas of Laos along with Saravan
Province and Champasak Province. Total coffee plantation area is 11,425 ha growing in Thateng and
Dakcheung plateau. The weather is similar to Pakxong plateau is favourable for Arabica coffee. Total annual
production reached 30,210 ton, the coffee growing in Thateng plateau sold to Sinouk Coffee Company and
Dao-Heuang Company in Laos, and the one growing in Dakcheung plateau sold to Danang province in
Vietnam (interview Mr. Sermsy Soulita, Deputy Head of PAFO Sekong in June 2016). According to
Recommendation from EA, the CFAVC project will exclude it since the government of Lao PDR prioritizes to
France for developing this sector up to 2023.

The regular income for farmers is vegetables production in the Thateng district as neighbouring district of
Paksong district in Champasak whom grow huge vegetables as key supplier for domestic and export market.
The farmers grow mainly cabbage and Chinese kale in the total plantation area of 19,000 ha for the year
2016, farmers grow three cycle cropping a year with high yield 0.9 ton/ha. Based on focal group discussion
with 16 farmers, the farmer leader said by Mr. Khamseuay, the Thateng district has three vegetables
production groups which locate along Km13 road such as: Lak-khao, Kongta-Youn, and Hua-Xedon.
Meanwhile 94 farmers have stable income 12,000-17,000 USD/year from vegetables excluding coffee
farming. Usually farmers grow both coffee and vegetables separately plot with integration of fruits tree
plantation.
Figure 12- Field trip and vegetables focal group discussion in Thateng district, Sekong province
Vegetables farmers dialogue and
economic farm analysis
Vegetables plots in Lak-khao
village grows for export market
Ground water (electric depth
pump) widely uses for vegetables
Rice produces for substantial, total rice production in 2015 reached 49,590 tons of paddies that it’s still not
sufficient for consumption in the province. There is 1,700 tons of milled rice imported from Champasak
province in each year. In order to complete self-sufficient rice production, the Sekong has to utilize 118
existing irrigation schemes that can cover 8,683 ha. Recently there are only 2,156 ha for irrigated rice
production (reported by Mr. Somlith Sisoulath, Deputy Head of Irrigation sector in Sekong).
Table 12 - Sekong Province’s commodities: area, yield and production
Commodity
2012 2013 2014 2012 2013 2014 2012 2013 2014 2012 2013 2014
1. Vegetables 1,445 1,625 16,940 1,445 1,625 16,940 10.31 13.08 21.15 14,900 21,250 358,320
2. Rice 11,079 10,677 12,158 11,079 10,677 12,070 3.43 3.70 3.96 37,968 39,520 47,774
Sekong Province is Laos’ main honey-producing area. Purpose-made tree cavities are a particular tree
beekeeping methods practiced in three districts of Dakcheung, Kaleum, and Lamam. This honey production
will be considered for an optional value chain. Other potential natural tea plantation and Dakcheung Ginseng

production has been harvested in the forests near 10 villages of Dakcheung district, Sekong province over the
past five years, This crop could potentially be a great benefit to farmers and it should be grown natural
Dakcheung ginseng in cool weather regions and harvested from 5-12 months. Then, farmers could supply
Dakcheung Ginseng totalling 400-500 kilograms a day and more if markets required, mainly Vietnam market.
The provincial authority invited the National Science and Intellectual Property survey and registers it to be a
product of Dakcheung.
Maize and Cassava are not selected commodities for the CFAVC project but it seems to be good benefit to
Sekong farmers’ income generating due to market availability unlike other crops (reported by Mrs. Khamchit
Phommalaysy, vice-village chef of Ban Dan, Lamam district). In 2015, there are 1,420 ha grown maize and 740
ha grown cassava while exported to Vietnam 8,520 ton and 9,160 ton respectively. These commodities have
been promoting mode of contract farming 2+3 (interview Mr. Kaison Saysangthee, the head of Department
of Industry and Commerce in Sekong).
Table 13. Irrigation to be repaired for crop production in Thateng and Lamam district, Sekong province
No. of
village
No. of household
Total cost
I Lamam district
1 Xe-Noi canals and
work-head
2 109 109 186 151,250
2 Houay-Vie canals 1 150 254 152 81,250
3 Houay-Khiew canals 1 150 195 133 65,000
II Thateng district
1 Houay-Toklok canals
and work-head
1 50 117 66 127,500
2 Houay-Tith reservoir 1 59 117 79 141,250
Total 6 518 792 606 566,250
Note: the design and survey are available at Irrigation Section, Sekong-PAFO.
To ensure food security and commercial crop production, there are five existing irrigation schemes need to
improve canals, work-heads, and reservoir. (i) The Xe-Noi, Tad-Huakhon scheme needs to repair work-head
(45,000 USD) plus improving soil canals into bricks/concrete canals (106,250 USD) this scheme can serve two
villages of Dan and Donchanh. (ii) Houay-Vie main canals need to improve in amount of 81,250 USD serving
for 152 households in Phon village. (iii) Houay-Khiew project needs improving main canals in amount of
65,000 USD for people in Non-Nongvam village. (iv) Houay-Toklok project requires for improving work-head
(52,500 USD) and canals (75,000 USD), it serves for Donlok village. And (v) Houay-Tith reservoir project will
irrigate water to reservoir serves for Palai village, the project has two main works to be constructed, one is
work-head (81,250 USD), and canals (60,000 USD).

Figure 13- Field visit and rapid irrigation survey in Thateng and Lamam district, Sekong province
Xe-Noi irrigation scheme is main
water sources for crops
Main concrete canal near work-
head with sufficient water
Water gate with gravity irrigation
(self-flow water)
4. Sub-Projects and Recommendations:
The Climate Friendly Agribusiness Value Chain (CFAV) project will enhance rural household incomes and
agricultural competitiveness by providing improved critical production and post-harvest infrastructure,
reducing energy costs by promoting bio-energy use and sustainable bio-mass management, and offering
targeted agribusiness policy and capacity support services. During inception workshop held in February 2016,
the Executive Agency (EA) removed the promotion of bio-energy use. Consequently, main focus will be two
aspects: (1) critical agribusiness value chain infrastructure and its efficiency improved; and (2) agribusiness
policy and capacity support services strengthened.
To strengthen climate friendly agribusiness value chain, sub-projects designed by province following:
4.1 Vientiane Province’s sub-projects:
4.1.1 Rice:
 Rice seed production (TDK8 rice seeds): Napok Rice seed center is owned by government, the
province needs 4,127 tons of seeds for rainfed rice farming, 684 tons of seeds for irrigated rice
farming, and 463 tons of seeds for upland rice farming.
 Fertilizer (state enterprise): Bio-fertilizer factory is located in Dongxiengdee village, Vientiane capital.
This state bio-fertilizer is able to produce 1,000 tons – 1,500 tons per year, the standard formula is
N>2, P>2, and K=1. The business plan to improve its facility requires 4,222,207,000 Lao kip (527,778
USD) reported by Mr. Syvong Phomsy vice director of Dongxiengdee Bio-fertilizer State Enterprise.
Secondly, a few hours’ drive from there to Vientiane province there is the Maliny bio fertilizer factory

(it’s private own enterprise), with excellent equipment and with 6 times the capacity of Dongxiendy.
Their set-up is professional, with a clear production line.
 Rice mill (+229 rice mills): the state rice mill in Vientiane province gave Ms. Sirikan Cohan (Ms. Nok)
the Thai-Israel company to operate and export to Israel 1,000 tons of milled rice per year. The high
demand rice variety is TDK8.
 Irrigation (see table 3 above):
 Agricultural Extension and Capacity Building: the activities will be supported such as: (i) production
group formulation needs budget 100,000 USD per year, (ii) strengthening the technical centers and
stations requires 50,000 USD per year, and (iii) farmer training and TOT needs budget of 15,000 USD
per year.
 Rice farmer group (7 groups):
o Thoulakhom district: Chaeng village (122 HHs), and Phathao village (107 HHs)
o Keo-Oudom district: Naxae village (132), Phonkham (127 HHs), Thadue village (115 HHs),
and Kokkieng (108).
o Phon-Hong district: Fai village (95 HHs)
4.1.2 Vegetables:
 Vegetable seeds supply (a total production area is 11,395 hectares): Vegetables farmers use import
seeds for commercial purpose and owned seed for domestic market and consumption, the traders
advance seeds and some uses they own seeds. The most vegetable types that vegetables farmers
have been growing there are: lettuce, morning glory, spinach, coriander, chinese kale, spring onion,
basil, mint, long yard been, chili, tomato, chinese flowering cabbage, and cabbage. The annual cost
of vegetable seeds spent is 206 USD per hectare.
 Fertilizer (two families produce bio-fertilizers namely Lak52 village owned by Mr. Kongkham, and
Km68 Vangmon village owned by Mr. Meksavanh, those supported by ADB TA8733): Province needs
56,975 tons of fertilizer per year.
 Water supply (Electric pumps, pipes, tanks):
 Vegetable producer group ( 14 groups):
o Phon-Hong district: Phon-Ngam village (160 HHs), Lak52 village (143 HHs), Ekxang village
(115 HHs), Nalao village (84 HHs), Saka village (63 HHS), Navone village (60 HHs), and Noy
village (53 HHS).
o Thoulakhom district: Poungphao village (46 HHS). Hadxay village (33 HHs), Chaeng village (25
HHs), Kuen nua village (17 HHs).

o Viengkham district: Nongkuay village (41 HHs), Pakchaeng village (35 HHs), and Phohang
village (28 HHs).
 Green house (126 units): 62,500,000 Lao Kip per hectare (7,813 USD/ha).
 Pre-Post harvest facility (none): farmers proposed the cold room and refrigerated truck
 Financing institute (two banks): the agriculture promotion bank, and NAYOBAY bank
 Market access (three major places): Organic market supported by JICA, Super markets, and wet
markets.
4.1.3 Estimated project costs:
Table 14. Detailed sub-projects for rice and vegetables value chain in Vientiane province
Sub-project in Vientiane province Item No. Items Cost/Item Total ($) Unit
Total Units
for Project
Project Total ($)
1. Rice
1.1 Rice seed production Farmer training on rice seed 1 1,500.00 1,500.00 Farmers 6.00 9,000.00
Seed sorting and grading machine 1 2,000.00 2,000.00 Center 6.00 12,000.00
Buying seed from farmers 1 50,000.00 50,000.00 Center 6.00 300,000.00
1.2 Bio-fertilizer Support farmers to produce bio-fertlizer 1 2,000.00 2,000.00 Farmers 6.00 12,000.00
Support the state bio-fertlizer enterprise 1 87,963.00 87,963.00 Factory 6.00 527,778.00
1.3 Rice mill Upgrading to full service rice mill 0 - - - - -
1.4 Irrigation Namchim irrigation 1 562,000.00 562,000.00 PAFO 6.00 562,000.00
Namxouang2 CP 1 454,000.00 454,000.00 PAFO 6.00 454,000.00
1.5 Agriculture Extension and capacity building production group formulation 1 100,000.00 100,000.00 PAFO 6.00 600,000.00
strengthening the technical centers and stations 1 50,000.00 50,000.00 PAFO 6.00 300,000.00
farmer training and TOT 1 15,000.00 15,000.00 PAFO 6.00 90,000.00
1.6 Farmer groups Revolving fund 7 1,500.00 10,500.00 Farmers 6.00 10,500.00
Land titling 7 1,500.00 10,500.00 PAFO 6.00 10,500.00
Total Rice 1 2,887,778.00
2. Vegetable
2.1 Vegetable seeds Seed bank 1 1,000.00 1,000.00 Farmers 6.00 6,000.00
2.2 fertilizer Compost making, Bio-extract, and EM 14 1,000.00 14,000.00 DAFO 6.00 84,000.00
2.3 Water supply Water electric/solar pump 28 100.00 2,800.00 Farmers 6.00 2,800.00
Pipes 28 300.00 8,400.00 Farmers 6.00 8,400.00
Tank 14 300.00 4,200.00 Farmers 6.00 4,200.00
2.4 Vegetables farmer group Study tour, cross field visit, field school farmer 1 1,000.00 1,000.00 DAFO 6.00 6,000.00
2.5 Green house Set up green houses 84 500.00 42,000.00 Farmers 6.00 252,000.00
2.6 Post-harvest facility Cold room 14 50,000.00 700,000.00 Farmers 6.00 700,000.00
Refrigerated truck 14 50,000.00 700,000.00 Farmers 6.00 700,000.00
Sorting, grading, and packaging hub 14 20,000.00 280,000.00 Farmers 6.00 280,000.00
Small pocessing unit 14 15,000.00 210,000.00 Farmers 6.00 210,000.00
2.7 Financial support Farmer revolving fund 14 1,500.00 21,000.00 Farmers 6.00 21,000.00
Crop insurance 14 1,000.00 14,000.00 Farmers 6.00 14,000.00
2.8 Market access Market information board 14 500.00 7,000.00 DAFO 6.00 7,000.00
Trade networking 14 1,000.00 14,000.00 Traders 6.00 14,000.00
Total Vegetable 2 2,309,400
Total Project Cost for Vientiane province 5,197,178
4.2 Khammouane Province’s sub-projects:
4.2.1 Rice:
 Rice seed production: Xebangfai rice seed center is government ownership,
 Fertilizer: BK Bio-fertilizer factory, the province requires a total of 16,074 tons of fertilizers (5,607
tons of Urea, and 10,467 tons of basal compost), but nowadays self-produce reaches 289 tons of
composts plus 23,520 Kg of dried EM. Based on focal group discussion with farmers, they used 5-10
tons of compost per hectare.

 Rice mill (+600 rice mills): there’re 7 active rice mill groups officially promote rice value chains
namely (i) rural rice mill group, (ii) mountainous rice mill group (Mrs. Nipha), (iii) Khammouane rice
mill group, (iv) Thakek rice mill group, (v) Nongbok rice mill group, (vi) Hinboun developing rice mill
group, and (vii) Khounkham developing rice mill group.
 Irrigation (see table 5 above): 15 irrigation projects need to improve from soil canals to concrete
canals, there are 7 projects in Nongbok district, 3 projects in Xebangfai district, and 5 projects in
Hinboun district.
stations requires 100,000 USD per year, and (iii) farmer training and TOT needs budget of 22,000
USD per year.
 Rice farmer group Xebangfai plain area and downstream of downstream area of Nam Theun-2 (gate
1-2, gate 3, gate 4-5):
o Xebangfai district (GAP and OA): there are 260 HHs in 6 villages having a signed contract
with rice mills
o Nongbok district (GAP and OA): there are 1,824 HHs in 27 villages growing rice with contract
farming
o Nyommalath district: there are 27 HHs in 3 villages plus contract farming
o Mahaxay district: there 1,685 HHs in 44 villages with contract farming. Moreover there is an
initiative green agriculture start at 4 villages (69 HHs) grows organic rice.
o Hinboun district: growing rice for food consumption
4.2.2 Vegetables:
 Vegetable seeds supply (a total production area is 33,579 hectares): people use import seeds for
commercial purpose and owned seed for domestic market and consumption, the traders advance
seeds and some uses they own seeds. The most vegetable types that vegetables farmers have been
growing there are: lettuce, morning glory, spinach, coriander, chinese kale, spring onion, basil, mint,
long yard been, chili, tomato, eggplant, and cabbage. The annual cost of vegetable seeds spent is 119
USD per hectare.
 Fertilizer (compost and chemical fertilizer): the province will use 167,895 tons of fertilizer.
 Water supply (electric pump, pipes, and water tanks): two electric pumps with 2.5 horse power are
required per 1 hectare in order to meet full sufficient water use for vegetables production.
 Vegetable producer group ( 13 groups):

o Thakek district: Mouangsum village (67 HHs), Namuang village (88 HHs), Houaynangli (73
HHs), Thadeu village (56 HHs), Donmalay village (44 HHs), and Thangam village (39 HHs).
o Nongbok district: Donkhiew village (40 HHs). And two villages grow Japanses cucumber for
export namely Phonpheng village (12 HHs), and Pongkyo village (9 HHs).
o Xebangfai district: Dongmakba village (10 HHs), Thakor village, and Kengpae village (7 HHs)
grow Japanese cucumber for export
o Saybouli district: Xiengkhai village (15 HHs) grows Japanese cucumber for export.
 Green house (75 green houses): most of vegetables farmers grow along Mekong river bank and the
same rice cultivation plot during the dry season where no irrigation exists.
 Pre-Post harvest facility (1 unit): Japanese cucumbers will be fermented after harvesting within 12
hours from farms.
 Financing institute (2 banks have been engaging in the agriculture sector): The Agriculture Promotion
Bank and NAYOBAY bank.
 Market access (the province demands 16,172 tons of vegetable per year): Fermented cucumbers
demand by Japanese market is 1,000 ton per year. For other vegetables, the province supplies only
4,043 tons (20%) to domestic market and 80% is importing from Thailand.
Table 15. Detailed sub-projects for rice and vegetables value chain in Khammouane province
Sub-project in Khammouane province Item No. Items Cost/Item Total ($) Unit
Total Units
for Project
Project Total ($)
1. Rice
Support the private bio-fertlizer enterprise 1 50,000.00 50,000.00 Factory 6.00 300,000.00
1.3 Rice mill Upgrading to full service rice mill 7 200,000.00 1,400,000.00 Enterprise 6.00 1,400,000.00
1.4 Irrigation Existing irrigation scheme needs to repair 15 - - PAFO 6.00 4,562,500.00
Total Rice 1 8,788,500.00
2. Vegetable
Pipes 26 300.00 7,800.00 Farmers 6.00 7,800.00
Tank 13 300.00 3,900.00 Farmers 6.00 3,900.00
Total Project Cost for Khammouane province 11,005,800

4.3 Savannakhet Province’s sub-projects:
4.3.1 Rice:
 Rice seed production (Homsavanh, TSN7, TSN8, TSN9, and TDK8, and TDK11 seeds): The Thasano
(TSN) rice seed center is owned by government can produce 34 tons of the F2 rice seeds and 400
tons of F3 rice seeds. There are 24 rice farmer groups (305 HHs) produce 1,200 tons of F3 rice seeds
in the areas of 568 hectares, those farmers earned income in amount of 6 billion Lao kip (750,000
USD). The seeds can be used to transplant in the area of 20,000 hectares (interview Dr. Phouthdalay
as director of Thasano rice seed center). In order to produce the quality or purity seeds, the center
need to buy mechanical sorter and grader to remove non-full grains and dockage.
 Fertilizer (two fertilizer factories plus one model village): (i) Sirisine Bio-fertilizer factory located in
Donghen village, Outhoumphon district, and (ii) Boua Deng bio-fertilizer factory located in Lak35
village, Champhone district. Moreover, (iii) Phai village, Champhone district as model village did
successfully produced 310,765 tons of compose/bio-fertilizers. Conclusion is, the province requires
1,164,700 tons of compost per year.
 Rice mill (There are 1,143 rice mills): Savannakhet has four commercial rice mills buy wet paddies
from farmers, small rice mills, and collectors aiming export milled rice to China market (15,000
tons/year) and European market (1,445 tons/year). The main export rice mills are: (i) IDP rice mills,
(ii) Siewlinda rice mill, and (iii) Kasethlao rice mill.
 Irrigation (see table 7 above):
 Agricultural Extension and Capacity Building (): the province completely established 801 agriculture
groups and 241 groups are pro-active. There are 54 commercial rice production groups, plus 12 rice
seeds production groups (interview Mr. Bounlub Khamsingsavath, Deputy Head of Agricultural
Extension and Corporatives Section, Savannakhet-PAFO). The province has 5 agricultural technical
centers, and 8 stations to conduct researches and demonstration of new techniques to farmers. For
the CFAVC project, three activities will be added such as: (i) production group formulation needs
budget 30,375 USD per year, (ii) strengthening the technical centers and stations requires 37,500
USD per year, and (iii) farmer training and TOT needs budget of 18,750 USD per year.
 Rice farmer group (Xebanghieng plain focuses on Ban Veun village cluster, Huay Thuad and Souy
areas in Champhone District, Thalahanam and other 9 potential and suitable areas in Savannakhet
province. Based on the provincial strategy by 2016-2020, commercial rice production will promote
10 potential districts such as Champhone, Xaybouli, Songkhone, Xonnabouli, Xayphouthong, Kaison
phomvihan, Outhomphone, Atsaphone, and Atsaphangthong): Nowadays 171 rice production groups
were formed and 4,275 HHs registered with high engagement from Siewlinda rice mill, Lao-World
rice mill, SKAI Company, rice mill groups, and various financial institutes. In addition, rice farmer in
Champhone received GAP certification by DOA.

4.3.2 Vegetables:
 Vegetable seeds supply (a total production area is 18,630 hectares): 70% of farmers use own seeds
and some import seeds. The majority of vegetable types that vegetables farmers have been growing
there are: lettuce, spring onion, coriander, mint, long yard been, chili, eggplant, and tomato. The
annual cost of vegetable seeds spent is 599 USD per hectare.
 Fertilizer (there are bio-fertilizer factories namely Sirisin and Champadeng): the province demands
93,150 tons of fertilizer per year.
 Water supply: Solar power, depth pumps and water tanks are proposing since electricity is costly
 Vegetable producer group (10 groups): organic vegetables producer group were formed by the
province and DOA in Kaison phomvihan district such as: Donseng1 village (10 HHs), Donseng2 village
(10 HHS), Nakae village (10 HHs), Pak-kha village (10 HHs), Phonsim village (7 HHs), Sompoi village
(10 HHs), Dongkha-Young village (10 HHs), and Atsaphanhthong district has two groups (20 HHs).
 Green house (348 green houses):
 Pre-Post harvest facility (none): farmers identify cold room
 Financing institute (2 banks have been engaging in the agriculture sector): The Agriculture Promotion
Bank and NAYOBAY bank.
 Market access (it is still exploring): Only weekly organic market and wet markets in the cities.

Table 16. Detailed sub-projects for rice and vegetables value chain in Savannakhet province
Sub-project in Savannakhet province Item No. Items Cost/Item Total ($) Unit
Total Units
for Project
Project Total ($)
1. Rice
Support the Private bio-fertlizer enterprise 1 50,000.00 50,000.00 Factory 6.00 300,000.00
1.3 Rice mill Upgrading to full service rice mill 0 - - - - -
1.4 Irrigation Existing irrigation schemes need to improve 14 - - PAFO 6.00 725,000.00
Total Rice 1 2,099,750.00
2. Vegetable
Pipes 20 300.00 6,000.00 Farmers 6.00 6,000.00
Tank 10 300.00 3,000.00 Farmers 6.00 3,000.00
Total Project Cost for Savannakhet province 3,752,750
4.4 Saravane Province’s sub-projects:
4.4.1 Rice:
 Rice seed production (TDK8, TDK11, PN3, and Jasmine rice): the Nongdeng rice seed center is owned
by government, it’s able to produce 140,130 tons of rice seed-F2, there are two rice mills producing
rice seed (seed-F3) such as: (i) Xieng-Non Pho Chalearn Rice mill owned by Mr. Bounkham, and (ii)
Mr. Bounma rice mill at Thamphouang village, Lakhonpheng district, those rice mills in corporation
with farmers to produce 418,755 tons of rice seed-F3. The province distributed 380,685 tons to
farmers in the province (interview Mr. Somxay Keovongsa, head of Nongdeng Rice Seed Center). The
conclusion is 6,757 tons of a total seed requirement.
 Fertilizer: (Bio & Chemical fertilizer factory located in Napong village, Khongsedon district), the
province totally requires 563,145 tons of fertilizers per year.
 Rice mill (+150 rice mills): the province has only the Medium rice mills such as (i) Bounma rice mill
located in Thamphouang village, Lakhonpheng district, (ii) Xieng Non Pho Chalearn rice mill located in
NathanKo or Ko village, Saravane district or EMRIP, and (iii) Kan-Ha rice mill located in Houay kok noi
village, Vapie district. The annual commercial rice production is 183,547 tons (30 hectares of land
area, meaning that 25,000 hectares of rainfed rice and 5,000 hectares of irrigated rice).
 Irrigation(see table 9 above):

stations requires 100,000 USD per year, and (iii) farmer training and TOT needs budget of 30,000
USD per year.
 Rice farmer group (officially formed 49 villages):
o Khongxedon district:214 villages sold wet paddies to IDP rice mill and Seng-Arthid rice mill,
those located in Champasak province
o Lakhonpheng district: Bounma rice mill has regular supply from 66 villages
o Vapie district: the Kan-Ha rice mill has good contract with 24 villages
o Saravane district: Xieng-Non Phonchalearn rice mill has been working with 57 villages
4.4.2 Vegetables:
 Vegetable seeds supply (a total production area is 10,460 hectares): Vegetables farmers use import
seeds for commercial purpose and owned seed for domestic market and consumption, the traders
advance seeds and some uses they own seeds. The most vegetable types that vegetables farmers
have been growing there are: cabbage, Chinese flowering cabbage, Chinese kale, spring onion, long
yard been, chili, and tomato. The annual cost of vegetable seeds spent is 412 USD per hectare.
 Fertilizer (compost and chemical fertilizer): 52,300 tons of fertilizer per year need by the province.
 Water supply (Electric pumps, pipes, and water tanks):
 Vegetable producer group (5 groups): Vegetable producer groups were formed in five villages
namely Phoukham village (20 HHs), Houayseng village (6 HHs), Nongtom village (18 HHs), Pork hem
village (27 HHs), Daxianoi village (14 HHs), and Len village (35 HHs).
 Green house (117 green houses): farmers invested.
 Pre-Post harvest facility (none): farmers propose to have collection point and cold room installation
at Lak-khao village.
 Financing institute (none): only the Agriculture Promotion Bank gives loan with affordable rate.
 Market access: Saravane markets and Pakse markets. Regular contract farming with the Paxong
Development Import-Export Co.,ltd.

Table 17. Detailed sub-projects for rice and vegetables value chain in Saravane province
Sub-project in Saravane province Item No. Items Cost/Item Total ($) Unit
Total Units
for Project
Project Total ($)
1. Rice
Support the private bio-fertlizer enterprise 1 50,000.00 50,000.00 Factory 6.00 300,000.00
1.3 Rice mill Upgrading to full service rice mill 3 200,000.00 600,000.00 Private 6.00 600,000.00
1.4 Irrigation Nongdeng weir and canals in Xe-set river 1 5,625,000.00 5,625,000.00 PAFO 6.00 5,625,000.00
Total Rice 1 8,094,000.00
2. Vegetable
Pipes 10 300.00 3,000.00 Farmers 6.00 3,000.00
Tank 5 300.00 1,500.00 Farmers 6.00 1,500.00
Total Vegetable 2 922,500
Total Project Cost for Saravane province 9,016,500
4.5 Champasak Province’s sub-projects:
4.5.1 Rice:
 Rice seed production (TDK8, PN3, PN5, PN7, and PN11), the Phon-Ngam rice seed center is owned by
government. In 2015, the province produced 8,127 tons; meaning that Pho-Ngam seed center,
Pavina rice mill, IDP rice mill, and Bao-Ngoc Vietnam/Bokoth company produced 2,000 Tons plus
6,217 tons produced by farmers. Annual rice seed required by the province is 7,478 tons, meaning
that the Phon-Ngam rice seed center could distribute to neighboring provinces.
 Fertilizer: there are two factories namely (i) Bio fertilizer-A+ factory in Km15, road 13,
Pathoumphone district, it owned by Vietnamese lady, and (ii) Champadeng bio-fertilizer factory, it
owned by Thai investor. In 2015, province was able to produce 62,000 tons of Bio-fertilizers, but
annual requirement of fertilizer is 623,180 tons (5 tons per hectare). Importance: Lao PDR imported
fertilizer in 2014 reach 182,714 tons (48.34 million US$).
 Rice mill (552 rice mills): There are six commercial large rice mills namely the IDP rice mill (2 units),
Pavina rice mill, Seng-Arthid rice mill, Lao-World rice mill, and Angkham rice mill.
 Irrigation(see table 11 above):

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