Page 1 Local Economic Development Team PICO Mr. Blackly PICO Mr. Alundeth SME Junior Advisor Mr. Khuanchai SME Advisor Mr. Karsten PICO Mr. Santisay Division of Industry and Commerce Province Attapeu PICO Ms. Bounlium

Page 2 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 Local Economic Development Approach

Page 3 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 Local Economic Development Activities

Page 4 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 Generation of high income potential for farmers in remote areas Local Economic Development Achievements and Results

Page 5 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 Local Economic Development Achievements and Results

Page 6 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 Local Economic Development Achievements and Results

Page 7 Local Economic Development Achievements and Results SilkFair Trade Coffee Organic Vegetable Sum Potential outreach by end of HH400 HH200 HH640 HH Potential gains * from 2 rai per HH 800 US $/ a ( LAK/day) 800 US $/ a ( LAK/day) US $/ a ( LAK/ day) * Potential gains are likely not be realized until end of 2011 Potential for tripling the average household income/ a

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

Page 9 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 Local Economic Development Lessons learned

Page 10 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 Local Economic Development Outlook

Page 11 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 Local Economic Development Outlook

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

Page 13 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 Local Economic Development Outlook