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Local Economic Development Team

PICOMr. Blackly

PICOMr. Alundeth

SME Junior AdvisorMr. Khuanchai

SME AdvisorMr. Karsten

PICOMr. Santisay

Division of Industry and Commerce Province Attapeu

PICOMs. Bounlium

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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

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• 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

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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

Local Economic Development Achievements and Results

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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

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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

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Local Economic Development Achievements and Results

Silk Fair Trade Coffee

Organic Vegetable

Sum

Potential outreach by end of 2011

40 HH 400 HH 200 HH 640 HH

Potential gains * from 2 rai per HH

800 US $/ a(20.000 LAK/day)

800 US $/ a(20.000 LAK/day)

1.500 US $/ a (35.000 LAK/ day)

* Potential gains are likely not be realized until end of 2011 Potential for tripling the average household income/ a

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Organic vegetable:• Planed investment in processing/

packaging facility in Attapeu rises potential for additional income generation and SME – Development

Local Economic Development Good Practice

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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

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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

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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

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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

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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