Lao PDR:Readiness to Engage in PPPs in the Agricultural Sector

1. T R A I N I N G O F T R A I N E R S A D V A N C E D W O R K S H O P
T O E N H A N C E P R O - P O O R P O L I C Y F O R M U L A T I O N
A N D I M P L E M E N T A T I O N A T C O U N T R Y L E V E L
M U O N G T H A N H H O T E L , H A N O I
2 9 M A Y T O 3 J U N E 2 0 1 6
Lao PDR:
Readiness to Engage in PPPs in the
Agricultural Sector
1 Dr. Vanthong Phengvichit
2 Dr. Bounlert Vannalath
3 Dr. Bounneaung Douangboupha
4 Dr. Phonevilay Sinavong
5 Mr. Khamphou Phouyyavong
6 Mr. Soukanh Keonouchanh
7 Mr. Chanphasouk Tanthaphone

2. Part 1: Policy and Legal Framework(1)
 Does your country have a national PPP policy or law? How are PPPs defined under this
law and what sectors does the policy/law cover? Not yet. Draft decree. National
Investment law with not yet clearly define of PPP.
 Example (PPP?): Rice commercialization Program(Since 2015- export to China)
 Private sector (rice miller, domestic investors, rice miller association)
 Government (MAF and Ministry of Industry and Commerce)
 Farmer (Farmer group)
 Financial sector (Banking institution)
Impact of this programme
• 110 HHs access to market (high processing market)
• Better export price compare to domestic market
• Knowledge gained (good agricultural practices)
• Recognition of improved local variety by other country
• Better income

3.  No existing law on contract farming
 But guideline on contract farming is existing(principle/ implementation manual)
 2+3 (Land, labour + Input, technology, market);
 1+4 (Labour + Land, input, technology, market )
 The intellectual property law is established in 2011, but there is not yet plant register.
 Food safety laws – it is available in 2013
 Enterprise law has been amended in 2014
 SME Law 2011
 Existing incentive investment policy for in rural areas
 Low interest rate,
 Lending interest exemption
 Income tax exemption,
 Import-export tax exemption,
 Existing financial policy:
Lao development bank provides SMEs fund; poverty reduction fund implemented
by national committee for poverty eradication
 Dispute settlement being solved local authority based on contract law 1990
 Agricultural Strategy2025 and vision 2030
 National Social Economic Development Plan 2016-2020
Part 1: Policy and Legal Framework (2)

4. Part 2: Institutional arrangements for
governing agri-PPPs
 What government agency is responsible
for the oversight of PPPs?
MAF, DAEC, MPI , MOIC
 DAEC
 Local authority (Provincial and district level)

5. Part 3: Operationalizing agri-PPPs – what
steps and processes are involved?
 There is no national level guidance exist on how to identify potential
projects, conduct feasibility studies, selection of private partners, co-
financing requirements and contract arrangements that can be used to
implement projects.

6. Part 4: Evidence of PPPs contributing to the
achievement of pro-poor policy objectives
 Electricity
 Road
 Poverty reduction fund (Specific requirement)

7. Thank You