Local Economic Development Team

1. Local Economic Development Team Division of Industry and Commerce Province Attapeu PICOMr. Alundeth PICOMr. Blackly PICOMs. Bounlium PICOMr. Santisay SME AdvisorMr. Karsten SME Junior AdvisorMr. Khuanchai

2. Local Economic Development Approach Promoting the development of Small and Medium Sized Enterprises (SME) trough: • Collecting and redistributing market information • Setting up and supporting producer groups and associations • Capacity -Building for SME Management • Linking between sellers and buyers • Setting up pilot-projects for new value chains • Development of new products

3. Local Economic Development Activities • Improve and expand the coffee production in Sansai and Phouvong district • Establish silk production in Saysetta district • Establish organic vegetable production in Sansai and Phouvong district

4. Local Economic Development Achievements and Results Coffee Value Chain: • Agreement of district authorities on development of coffee production • Incorporation of existing coffee plantations (70 ha by 300 HH) • 26 ha newly planted by 99 HH • Additional 30 ha will be planted in Nov. 2010 • Generation of high income potential for farmers in remote areas

5. Local Economic Development Achievements and Results Silk: • PPP with a Lao based company • 27 HH participate • Generation of high income potential for the farmers • Security for farmers through contract farming • Potential for further expansion due to high demanding market

6. Local Economic Development Achievements and Results Organic vegetable • PPP with a leading Thai company in this sector • 118 HH participate • first harvest expected in November 2010 • Generation of very high income potential for the farmers • Security for farmers through contract farming • High potential for further expansion of organic fruit & vegetable production in Attapeu

7. Local Economic Development Achievements and Results * Potential gains are likely not be realized until end of 2011 Potential for tripling the average household income/ a

8. Local Economic Development Good Practice Organic vegetable: • Planed investment in processing/ packaging facility in Attapeu rises potential for additional income generation and SME – Development

9. Local Economic Development Lessons learned Good: • PPP and contract farming are effective means to set up new income opportunities for small scale farmers Should be improved: • Coordination between line agencies from different sectors

10. Local Economic Development Outlook Expand the model activities of farmer group building and training to additional farmers and expand the production for: • Coffee at upland areas of Attapeu province • Vegetable for local, regional and international markets • Livestock production, especially cattle • Handicraft products

11. Local Economic Development Outlook Survey additional market potentials: • Cooperative agricultural and SME projects with private sector partners from non agricultural sectors, for example energy and mining • Potentials for enhanced export to Thailand and Vietnam • Non Timber Forest Products

12. Local Economic Development Outlook Develop (model) projects for promising new crops/ products/ value chains: • Cassava production and primary processing • Palm oil production and primary processing

13. Local Economic Development Outlook Improve cooperation between line agencies from different sectors • Support the line Agencies to develop a common strategic vision of the socio-economic development of the province • Support the Line Agencies to develop and implement the necessary strategies, schemes and tools to successfully link farmers to the markets and manage investments, especially Foreign Direct Investments