Rapid Appraisal of Cross-Border Agricultural Business along NSEC: Focus on China-Laos Border

ABSTRACTED FROM THE EXECUTIVE SUMMARY: The key findings of this field visit identified two main types of agricultural investments in northern Laos. One is the government-initiated agricultural cooperation program, in particular the Alternative Development Scheme aka Opium Substation Development Scheme supported by Chinese government. The other is individual small-scale contract farming investments by Chinese businessmen. Current and potential issues related to these agricultural investments were also examined, including border passings and custom clearance procedures. It was found that different types of investments have different procedures to allow their harvested products to pass the border into China. With Laos still being underdeveloped, its government has limited financial support to address issues like lacking of irrigation systems, drought and flood control measures, roads and electricity supply. Agricultural management and technicians are in great needs. Good seeds, fertilizer, and pesticide and other agricultural supplements are also needed. The issues raised in the report require a comprehensive and consistent support from concerned government agencies, participating companies and communities, not only from within, but also from outside at regional and international level. When it comes to cross-border issues in particularly, it calls for more meticulous consideration on how to promote economic development and social and environmental progress.

Regional