Deal #4013

Lao PDR

Created at

2013-08-14

Last update

2022-03-15

Last full update

2022-03-10

Land area

Size under contract (leased or purchased area)

[current] 22000 ha

Size in operation (production)

[2009, current] 701 ha

Comment on land area

10000 ha in Luang Namtha, 5000 ha in Oudomxay and 7000 ha in Luang Prabang (Nam Bak). Areas of agriculture and forest land previously zoned and allocated by the government were reallocated by local government officials to be used for the project’s rubber plantation development. In 2006 the relationship between villagers of Namai village, Nambak district and government institutions has been marked by two territorial projects, that of resettlement and secondly, through the conversion of 255 ha of state land – in the Namai upland into a concession for Sino company. Areas of agriculture and forest land previously zoned and allocated by the government were reallocated by local government officials to be used for the project’s rubber plantation development. In 2006 the relationship between villagers of Namai village, Nambak district and government institutions has been marked by two territorial projects, that of resettlement and secondly, through the conversion of 255 ha of state land – in the Namai upland into a concession for Sino company.

Intention of investment

[current] Non-food agricultural commodities, Industry

Comment on intention of investment

Rubber plantation and rubber processing factory

Nature of the deal

Concession, Pure contract farming

Negotiation status

[2004-12-20] Concluded (Contract signed)
[2005-10-01, current] Concluded (Contract signed)

Comment on negotiation status

several contracts: Nambak & Pak Ou districts: 2004, for 40 years; Oudomxay: 2005, for 30 years; Luang Namtha: registered 2001

Implementation status

[2009, current] In operation (production)

Comment on implementation status

in some areas, there was no plantation activity in 2012

Contract farming

Yes

Comment on contract farming

For latex: 65 percent (farmer), 30 percent (company), 2 percent (village communal fund), 3 percent (technical service fee for DAFEO/PAFO) For rubber: 70 percent (farmer), 30 percent (company) The contract farming is also in the scheme of 2+3 model (where farmers provide land and labour and the company delivers the planting material, equipment, and market) A contract form for households also offers another profit sharing (for latex - 10 percent for company and 85 percent for farmers, and for timber - 10 percent for company and 90 percent for company) scheme if the farmers do not need to purchase seedlings from the company. The contract farming is also in the scheme of 2+3 model (where farmers provide land and labour and the company delivers the planting material, equipment, and market)