Deal #8058 Version #86226

(source: Phimmavong 2019)

In 2014, Ministry of Agriculture and Forestry said that the way the company contracted local people to plant the trees on state land, notably on conservation forest, contravenes relevant laws (it expanded over the land use rights had been granted to the company). Once provincial authorities said that company used to take over a land concession of 100 ha that province previously granted to without informing the authorities. The company has established Grievance Management where local communities can address or resolve the conflict/problem. This grievance management is posted on Village Notice Boards (in each village company works with) [Source: Company Annual Report 2019].

The project is considered to be a medium high risk, category B+ project, based on general limited potential adverse social or environmental impacts that are mainly site specific and can be mitigated by normal industry practices. Based on the community's visit, some local communities said that since the plantation has operated, they noticed the change of river, less water (sometimes not enough to use within the community). They said this type of plantation also has impacts on access to Non Timber Forest Products (there are less and less now).

contributes to Village Development Funds, Khum Development Funds and District Development Funds.

The company has incrementally expanded plantation lease areas, with more than 4,000 ha planted as of 2019. Associated infrastructure has expanded with an operational sawmill, a nursery capable of supporting expanding operations, and a plywood mill under construction. It also has provided labour opportunities to over thousand Lao people in rural areas every year and have trained many for advancement to skilled labour positions. The company assesses each new plantation to determine the potential risks from UXO contamination (In 2019 this process identified potential UXO contamination in the area of Nam Phak plantation, Ban Xor village) [Source: Company Annual Report 2019].

Over the course of 2019 and into 2020, the company also works with RECOFTC, an INGO, to develop advanced approaches to strengthen the capacities of forest dependent community-based enterprises [Source: Company Annual Report 2019].