Laos: A fertile land for high-tech agricultural development

Recently, reporters of Vietnam Agriculture News (VAN) had experienced a glimsp of Laos’ potential in terms of logistics and agriculture through the high-speed railway and the farming sitaution in several Lao provinces. To gain a deeper understanding of the opportunities for agriculture in Laos, VAN had a conversation with Nguyen Thi Thanh Thuc, Chairwoman of the Board of Directors of AutoAgri Software Technology JSC, who was also looking for opportunities to invest in this developing land.

Dear Ms. Nguyen Thi Thanh Thuc, Chairwoman of the Board of Directors of AutoAgri Software Technology JSC, how do you feel about Lao agriculture? Like the land, climate, specialties…

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The difference is that Laos has a sparse population, and investment conditions in transportation and irrigation are not favorable. But it is actually an opportunity for Laos' natural products, such as mushrooms, medicinal herbs from forest, or most simply the bamboo of Laos. Lao forest has a lot of bamboos. Bamboo shoots can be collected and processed. There are many opportunities for us to set up a processing factory here.

Because the land is vast and the people are sparse, cattle farming is quite developed in Laos. For example, beef from Laos is one of the products that we from the business side also buy a lot to provide the market. Therefore, I think this is an opportunity.

Science and technology of Vietnamese enterprises are applied very early, so it is quite advanced. To make an example, in animal husbandry, we already have companies like Hanoi Livestock Breeding Joint Stock Company, a unit that has created breeds with very advanced technologies and at a very cheap price compared to the world.

Regarding native agro-products of Laos, after purchasing, we should process them on the spot if we have the opportunity. The challenging thing about agricultural development here is irrigation. I think with the experience of the Vietnamese, Laos’ irrigation issues would not be too much of a problem.

As for traffic, I think that the Lao government has the support of other countries, so Laos' traffic is progressing well in its development. As for agriculture, land in Vietnam now is expensive, so we clearly have various opportunities. And especially for Laos, the solidarity and trust of the Lao people with the Vietnamese people is a great opportunity for us to enhance the friendship between the two sides through cooperation and sharing in the fields of agriculture and tourism.

We have been to Xiangkhouang, and according to the leader of the Department of Agriculture, the climate there is very good for cattle farming. Xiangkhouang’s average temperature is only 22 degrees Celsius, and there is only a slight difficulty in the dry season. They say that the potential for cattle farming is immense.

But according to my observation, in terms of livestock conditions, Lao cattle are still small, just like what we in Vietnam have experienced. In your opinion, is this an opportunity for businesses to bring high technology to Laos in a favorable way?

I would say that the Lao government is also very eager to receive support, cooperation and sharing on scientific and technical, especially high technology. For example, our company is a business that owns very simple agricultural management software. When we came here to seek investment and cooperation opportunities with Lao enterprises, we also had conversations with the Minister of Agriculture and Forestry (MAF) of Laos. The Lao agriculture sector also wishes to soon apply such simple software to help manage the database of Laos.

Our company is also ready to sponsor and register with the MAF of Laos. We will sponsor the Lao Ministry of Agriculture a version of the software that we are using in Vietnam. We also had an official report with the Ministry of Planning and Investment of Vietnam. For the sponsorship program we will also go through the state, the Ministry of Planning and Investment to increase cooperation between localities as well as businesses in Vietnam to support Laos.

Another thing is that if we now cooperate and the Government creates more conditions for the import of cattle from Laos to Vietnam, for example, we currently go through the Lao Bao border gate, but if it was the North of Laos, in Phongsali, we could buy cattle and bring it right to Dien Bien. That is, all bordering gates of us with Laos can be allowed to import thanks to having veterinary control. We open more gates with more locations for trade, then the livestock products brought from Laos will enable us to save a lot of costs.

Instead of going from Northern Laos down to Central Laos to pass through Lao Bao border gate and then back to North Vietnam, the cost will add millions of VND per head. That would be extremely unreasonable because people can raise for two years to be able to sell for VND 10 million/head, but the cost of transportation alone is VND 1 million more expensive. I hope that if possible, the MARD of Vietnam will create more opportunities and we will be able to announce those opportunities. We have to communicate more so that Vietnamese businesses and traders understand the procedure as simply as possible, and we coordinate with the Lao side.

I also feel that we need to strengthen propaganda and create all conditions for the people of the two countries to travel and do business in accordance with the procedures and laws, especially small businesses in Vietnam, for which I will use the word "agricultural business".

Let’s take young people starting a business in Vietnam for example. 1 ha of land may cost them VND 1 billion, but if we go to Laos, we can buy 10, 20 times that amount of land. With the Government providing sponsors and support to Lao provinces, we can utilize the budget to form infrastructure and agricultural zones.

With the experience of the Vietnamese, especially Vietnamese farmers who work in agriculture near the Laos border, now from Son La to Thanh Hoa, Nghe An, Ha Tinh and Gia Lai, Kon Tum, everyone is really good at what they do. So, right next to the border, such potentials of land, climate, and soil, if those who do agriculture cooperate with such areas, those who usually work on a small-scale, 10-20 ha, for example, can well-perform some high quality work.

The problem you raised is very meaningful, but I must also say that it is extremely grand. What do you wish to request from the Government, or at least ministries and branches, so that we may have some ways to make the things you said come true?

I exchanged information with the Minister of Planning and Investment Nguyen Chi Dung and the Minister also shared the concerns and strategies of the Government, wishing to develop investment in three fields in Laos. The first is agriculture, the second is tourism, the third is renewable energy. The Minister also said that he had also launched programs to organize investment promotion, introduction and visits, but still had not had the desired results.

I think, for Vietnam, the government as well as businesses are still not really strong in terms of financial resources, maybe just developing. Especially in the agricultural field, if following the perspective of such communication and introduction, Vietnamese businesses still cannot imagine where they can succeed because everywhere they go, they see problems: the first is traffic, the second is the irrigation system, the third is electricity infrastructure.

And everyone thinks that Laos is short of labor. But I see this as an opportunity because, in terms of labor shortage in Laos, we already have a lot of production, breeding and farming technologies that are not too dependent on labor, such as drip irrigation systems or spraying pesticides using drones. I don't see it as a problem, and sometimes it is actually an opportunity for us not to be heavily dependent on the use of labor in agriculture and an opportunity to apply high technology to Laos. I think it is a really good opportunity.

We may not have much money, but we have people. Compared to surrounding countries, the force involved in the agricultural sector, especially young businesses and young Vietnamese start-ups, is a force of great potential.

And I also proposed to Minister Nguyen Chi Dung, which is: with my experience after studying in Laos, with our company’s approach, we think that there might be a chance for us if we promote cooperation between young Vietnamese enterprises and young Lao enterprises, especially young enterprises in Vietnam's provinces supporting and connecting with young Lao enterprises, and create conditions so that Vietnamese young people who are enthusiastically investing in the field of agriculture has the opportunity to go to Laos. On the contrary, for young people who have energy and enthusiasm to work but do not have a protection corridor or a concentration area to ensure safety and peace of mind to invest, the implementation will be difficult.

But the difficulties that I think of, if at the Government level, associations and particularly young business associations, can be resolved. Minister Nguyen Chi Dung also directed us to cooperate with the Enterprise Development Agency of the Ministry of Planning and Investment to soon study and propose a plan so that we can implement agricultural development and cooperation with Laos.

Many thanks to Ms. Nguyen Thi Thanh Thuc for your sharing!