Resource information
For more than a decade, the government of Lao PDR has promoted commercial uses of agricultural land by private investors. While investment in land has enormous potential to promote Laos’ economic development, benefits have been unevenly distributed across society. Some business practices affecting land use have also been associated with displacement, environmental degradation and land disputes. Since 2015, the GIZ Land Programme in Laos has supported the Ministry of Planning and Investment and local authorities in better managing agricultural investments, as part of its bilateral project Land Management and Decentralised Planning (LMDP) and since 2017 as part of the Global Project on Responsible Land Policy. The programme supports authorities in systematically monitoring investments and following up on commitments that all sides agree on. For this, the government uses digital rating tools and a list of quality criteria developed with the support of the programme. The aim is to create a more regular exchange of feedback between investors, involved communities and local authorities and improve oversight. These are expected to lead to investments that benefit local development more. The Land Programme has developed three Stories of Change to illustrate how effective its support has been in the area of Quality Investment Promotion, the other complex factors influencing land-based investments and the challenges encountered. The case of Niphonsub Tea Company illustrates the opportunities and limits of supporting a small business that already has a low impact on the environment. Comparing its relatively low monitoring score – indicating non-compliance with good practice and regulations – to larger and better equipped companies gives us a skewed image of how well the business is performing in reality.
