Lao PDR hosts national-level multi-stakeholder dialogue on responsible investments for sustainable agriculture

From 29 to 30 August 2024, the government of Lao PDR hosted the fourth ‘National Multi-Stakeholder Dialogue (MSD4) on Responsible Agricultural Investment (RAI)’. The event brought together 110 participants from various sectors, including the government, the private sector, civil society and development agencies.

With Lao PDR preparing to take on the ASEAN Chair in 2024, this pivotal event focused on promoting sustainable agricultural and forestry investments while addressing key challenges. It also looked at fostering responsible practices for sustainable landscapes and food production systems. The dialogue centred around three critical pillars:

• policy and governance, which examined recent legal reforms and recommendations to promote responsible investments in agriculture and forestry
• green financing, which focused on opportunities and constraints in accessing sustainable funding for micro, small and medium enterprises and smallholders while discussing necessary reforms involving government and private sectors, and
• agroecology and RAI principles, which highlighted the need to align agricultural practices with sustainability goals through the integration of agroecology and RAI guidelines.

Andreas Gerrits, deputy director of cooperation at the Swiss Agency for Development and Cooperation (SDC), underscored the importance of a comprehensive approach to responsible agricultural investment in his opening remarks. "True systems change requires multidimensional approaches that create enabling environments for good policy, responsible investment and sound governance,” he said. He emphasized that no single sector or institution can achieve this alone. As principal funder of the Mekong Region Land Governance (MRLG) and Transformative Land Investments (TLI) projects, SDC is dedicated to fostering sustainable development across the region. 

The Lao government, through the Investment Promotion Department (IPD) and the Department of Agriculture Extension and Cooperatives (DAEC), reaffirmed its commitment to RAI. By advancing the recognition of customary land rights for rural communities and finalizing the nation’s first regulation on contract farming (where an investor and farmer agree to produce a specific product), the government is laying the groundwork for a more sustainable and equitable investment landscape. 

Phanxay Ingxay, deputy director general of the DAEC, echoed this sentiment, emphasizing the need for collaboration with development partners, civil society and the private sector to drive local-level reforms. Thavichanh Thiengthepvongsa, deputy director general of the IPD, called for unity 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," she stated.

Participants also recognized the potential for enhancing financial systems to support small- and medium-scale sustainable investments in agriculture and agri-food systems. Engaging in detailed discussions, stakeholders identified constraints and opportunities within green financing, sharing examples and incentive mechanisms to encourage sustainable investment. 

In parallel, a masterclass on gender equality was also organized, acknowledging the crucial roles women play in the agriculture sector despite their underrepresentation in leadership positions. Participants outlined current challenges related to gender equality in land investments, assessing progress made since 2018 in the agricultural and rural sectors, and identifying priority actions to mainstream gender in land investments, agribusinesses and value chains. Despite widespread commitments to gender equality, persistent barriers highlight the need for concrete actions to empower women economically. 

As part of the event, a World Café storytelling marketplace allowed participants to share successful field practices in agroforestry and responsible agricultural investments. Organizations such as the Community Association for Mobilising Knowledge in Development, Woman Mobilizing for Development Association, Lao Farmer Network, GIZ, Village Focus International, Oxfam, Sustainable Agriculture & Environment Development Association, and Saffron Coffee were amongst those participating in the marketplace.

RECOFTC continues its active role in Lao PDR through initiatives like the MRLG and TLI projects, empowering the focal group on RAI and local communities through gender-inclusive and sustainable land management practices. In collaboration with the Department of Forestry, we hope to integrate approaches on RAI, gender equity and tenure rights into national frameworks, setting a positive example for the region. 

The stakeholder event was organized by TLI, MRLG and GIZ, with funding provided by Switzerland through SDC, alongside contributions from Germany and Luxembourg.

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RECOFTC’s work is made possible with the support of the Swiss Agency for Development and Cooperation and the Government of Sweden.