The Government of Lao PDR demonstrated its commitment to attracting more sustainable and equitable agricultural investments by hosting the 4th National Multi-Stakeholder Dialogue on Responsible Agricultural Investment (RAI), held on 29-30 August in Vientiane. As ASEAN Chair for 2024, this presented a unique opportunity for Laos to showcase its leadership, inspiring other ASEAN Member States to follow suit. The MSD was well-attended by over 110 government, private sector, development agency, and civil society representatives, including 20 subnational government representatives, all who participated in plenary sessions, two smaller Masterclasses, and a “World Cafe” a story-telling marketplace for sharing contributions to responsible investments and inclusive business in agriculture, food and forestry, all of which aimed to foster collaboration and dive deeply into issues facing agriculture and forestry investments in Lao PDR.
The Lao government, represented by the Investment Promotion Department (IPD) and the Department of Agriculture Extension and Cooperatives (DAEC), has demonstrated its strong commitment to more responsible agricultural investment (RAI). By improving recognition of customary land rights for rural communities and finalizing the country’s first-ever regulation on contract farming (where an investor and farmer agree to produce a specific product), the government is creating a more favorable environment for sustainable and equitable agricultural investments.
In the opening remarks, new SDC Deputy Director of Cooperation Andreas Gerrits underscored the importance of a nuanced approach to responsible agricultural investment (RAI) in Laos. “True systems change requires multi-dimensional approaches that create the enabling environments for good policy, responsible investment, and sound governance. No one sector or institution can achieve this alone.” As a key funder of the MRLG and TLI projects coordinating the event, SDC is committed to supporting sustainable development and responsible investment in the region.
In her keynote speech, Ms. Souvanane Keothammavong, Head of Sustainability, Mekong Timber Plantations, emphasized her company’s commitment to responsible agricultural investment (RAI). Mekong Timber Plantations (MTP) is a leading forestry plantation company in Laos, operating a 24,000-hectare estate primarily in the central provinces of Bolikhamxay and Khammouane. MTP is a pioneer among Lao investors in shifting business practices to meet higher market demands for environmental, social, and governance (ESG) corporate behaviour that promotes transparency and accountability. In doing so, they are ensuring that investments are evaluated through their long-term impact on communities and the environment, rather than prioritising short-term profit..However, MTP also seeks government support for clearer land tenure security, more explicit policies, effective incentives, enhanced access to green finance, and stronger partnerships. Land tenure security is crucial for investors like MTP as it provides stability, reduces risks, and enables long-term planning, which is essential for sustainable and responsible agricultural investments.
Ms. Thavichanh, Deputy Director General of the IPD, emphasized the need for unity and shared goals in strengthening the national economy. “We must all come together with one heart and one goal in mind: to strengthen the national economy in such a way that no one is left behind.”
Dr. Phanxay Ingxay, Deputy Director General of the DAEC, echoed this sentiment. “While acknowledging the government’s efforts to develop strong national policies, we must also prioritize collaboration with development partners, civil society, and the private sector to drive these reforms at the local level.”
As ASEAN Chair this year, Lao PDR has a unique opportunity to showcase its leadership in promoting responsible agricultural investment. The government’s actions demonstrate its commitment to creating a more conducive environment for sustainable and equitable agricultural investments.
Dr. Micah Ingalls (Team Leader, MRLG): “The Government of the Lao PDR has made substantial progress this year in strengthening legislation around responsible investments. Given the current financial situation, attracting high-quality investment that can even the playing field is more urgent than ever. It is crucial, however, that these investments are regulated by the rule of law, securing public benefits to the whole people of Laos rather than the personal benefits of the few.”
The event was organized by Transformative Land Investments (TLI), Mekong Region Land Governance (MRLG), and GIZ, and was hosted by the Investment Promotion Department (IPD), Ministry of Planning and Investment (MPI); Department of Agricultural Extension and Cooperatives (DAEC), Ministry of Agriculture and Forestry (MAF). It was funded by Switzerland through SDC, with co-funding from the governments of Germany and Luxembourg.
Download the MSD on RAI 2024 presentations
View the Zoom video archive of the event
