Presented by: Phouvong Phaophongsavath (MPI) Justine Sylvester (VFI) Insights from a Multi-Stakeholder Approach towards Responsible Agricultural Investment in Lao PDR Presented by: Phouvong Phaophongsavath (MPI) Justine Sylvester (VFI)

Where in the world is Laos?

Laos Strategic location of secret war/ Vietnam war in 1960s The most heavily-bombed country per capita 37% of total land in Laos are UXO contaminated* *Source: UXO Lao Annual Report 2012

Context of Investment in Laos 7 million people country with a size of 236.800 km2 (as big as Minnesota State) Young country just 40 years old Stable economic and politic with the one-party system Joined ASEAN in 1997 ($650 million market) and the WTO in 2013 Key foreign trade and investments from neighboring countries and the region Turning land-locked to “land-linked” country with regional connectivity and network Opening Up the country from 1988 – 2009

Approved FDI projects in Laos by sector (1989 – 2015) Source: OECD calculations based on Investment Promotion Department, 2016

Converting “Land into Capital” Policy since 2006 3 million hectares arable land for agriculture 1.1 million hectares granted for over 2500 leases and concession Issuing about 800,000 land titles in 2014

Recent Government Actions on Land Concessions Government’s Moratorium in 2009 PM’s Order No.13 in 2012 Ban on Large Banana Plantation 2016 Expecting some additional instructions in 2017

Promoting Quality Investment

Multiple Benefits of Quality Investment Business Government Community/ CSOs

Zooming in: a new multi-stakeholder approach in Laos Cross-sector dialogue and cooperation is rare in Laos Growing concerns about impacts of land-based investment RAI Working Group formed in 2015 brought multi- stakeholders to the ‘same table’

Responsible Agricultural Investment Working Group Goals: Create a shared understanding of ‘Responsible Investment’ (shared value) New space for cross-sector dialogue, cooperation and trust building Document good and improving practices to share and replicate across the country Reach out to ‘harder to reach’ investors

Insights from the process What did we do? Co-hosted a Responsible Investment Seminar Field visits to operations of two agribusinesses Talked with communities, local government, civil society, companies Co-produced a series of case studies But we found that the process was more important than the final ‘product’

Searching for Common Ground Sustainable development Economic benefits (employment, profits, household income, national growth) Lower business risks and less delays Avoid conflicts Clear and transparent processes and regulations

New Initiatives towards RAI Partnership between NGO and agribusiness for better community engagement Quality Investment Promotion RAI Working Group II

Khob Chai / Thank you Any Questions?