Mr Bouachanh Sihavong (right) and Mr Wang Li signed agreement on transport and road development.

Chinese firm to undertake agriculture and forestry development project

The State Enterprise for Agricultural Service of the Ministry of Agriculture and Forestry has signed a Memorandum of Understanding (MOU) with the Shandong Hi-Speed Road & Bridge International Engineering Co., Ltd. of China.
The agreement authorises the company to carry out a feasibility study of agricultural and forestry development and the processing of agricultural and forestry products along Road 1F, as well as the upgrade of the road to better facilitate the transport of agricultural goods for export.

Mr Bouachanh Sihavong.

The MOU was signed in Vientiane on June 6 by the Director of the State Enterprise for Agriculture Service, Mr Bouachanh Sihavong, and the Chairman of Shandong Hi-Speed Road & Bridge International Engineering Co., Ltd., Mr Wang Li.
Speaking at the ceremony, Mr Bouachanh Sihavong said “This cooperation will contribute to the transformation from traditional production models to a modern industry linked to value-added processing with the provision of production factors and services as a focus to resolve problems that have occurred in the past.”
“This includes damage caused by climate change (floods, droughts, pest infestations), high production costs, no market for products produced, the production process does not follow clean agricultural principles, the market does not accept the product, transport costs are expensive, etc.”
It will also enable people living in the project area to boost their incomes by improving their farming skills so they can grow more crops on a commercial basis in a group format, supported by strong cooperatives, a good information learning system, early warning of disasters, and access to a wide range of services such as land planning, water supply, crop varieties, farming methods, maintenance, marketing information, and credit schemes, Mr Bouachanh said.
“We have included a study of the development of freight transport in the agricultural development study project from the beginning.”
“This partnership will help to reduce the government’s investment budget by attracting grants and qualified entrepreneurs to invest in infrastructure for production and processing,” he added.
If the project goes according to plan, it will move forward to a higher level and the consideration of a joint venture.
The results of the collaboration are expected to increase annual crop yields.
It is envisaged that the rice harvest will increase by more than 500,000 tons, vegetable crops by more than 1,000,000 tons, fruit by at least 600,000 tons, and livestock by at least 300,000 tons.
It is also hoped that fish farming will involve at least 500,000 more people a year, and that agricultural and forestry tourism will increase by at least 500,000 people a year, which will contribute an additional 25-30 percent to Gross Domestic Product (GDP) from agriculture each year.
“I believe that if each of the project goals set for this study and development is achieved, it will not only contribute to the production and processing of agricultural products and generate additional income, it will also become a model of modern commercial agriculture linked to sustainable tourism with public participation,” Mr Bouachanh said.
This will involve the sharing of information, create more jobs for young people, and can be expanded to more parts of the country, he added.

By Times Reporters
 (Latest Update June 11, 2025)