Vietnamese Agricultural Investment in Cambodia and Laos: Benefits, Impacts and Challenges

ABSTRACTED FROM EXECUTIVE SUMMARY: Governments in the Mekong sub-region rely on foreign direct investment (FDI) as a major source of development funding. From the beginning of the 21st century, Cambodia and Laos have made large areas of land available for domestic and foreign investors. Vietnamese companies have acquired large land concessions for agricultural investments, including crops such as rubber, coffee, and sugar cane. While Government officials emphasize the contributions of FDI to economic growth and development, the media and civil society have increasingly criticized apparent negative impacts on local communities and the environment. If left unchecked, these impacts may affect the spirit of regional cooperation that cross-border investment is meant to promote. In this complex context, this report presents an overview of the current situation and trends in Vietnamese agricultural investment in Cambodia and Laos; it provides insight on the benefits, impacts and challenges of investment and examines how investment can be more responsive to the destination communities.

Cambodia, Laos, Vietnam