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Concrete trade and investment commitments for Lao PDR’s chili pepper sector were secured today at a business matching event co-chaired by the Lao Government and the Food and Agriculture Organization of the United Nations (FAO).
The event brought together Lao chili producers, processors, and exporters with verified buyers and investors from the People’s Republic of China and the Republic of Korea.
During the event, two Letters of Interest (LoIs) were signed, demonstrating the shared commitment of an international private-sector partner, a Lao producer group, and the Department of Planning and Cooperation of the Ministry of Agriculture and Environment (MAE) to develop a chili pepper production and trade partnership.
“Chili peppers are part of our identity, deeply tied to our food culture and the livelihoods of our farmers,” said Deputy Minister of MAE Chanthakhone Boualaphanh. “The Ministry will lead the design and piloting of a traceability system for registered production areas and packing houses, which is a critical step in translating our agreements with China into actual export volumes.”
“We recognize that Lao exporters and small and medium-sized enterprises need concrete support to turn interest into trade,” said Deputy Minister of Industry and Commerce Manothong Vongsay. “We will co-lead the launch of a dedicated SME and green-finance mechanism for our chili sector, designed to help producer groups cover the costs of Good Agricultural Practices (GAP) certification, post-harvest infrastructure, and cold-chain facilities.”
“FAO remains committed to walking this path with the Lao Government, from evidence to opportunity and market access,” said FAO Representative in Lao PDR Kyung-Mee Kim. “FAO has provided technical assistance at every stage, including supporting the rapid value chain analysis, delivering province-level extension on GAP standards and pesticide residue limits, and helping structure the smallholder finance mechanism.”
Overcoming Compliance Gaps and Boosting Infrastructure
The business matching event represents the culminating external, demand-side step of a two-stage process under the FAO Hand-in-Hand Initiative. It builds on a previous Stock-Taking Consultation, which established a national production baseline and identified export capacity and compliance gaps.
Targeted investment facilitation during the event highlighted priority entry points along the value chain, including pre- and post-harvest infrastructure, processing, cold-chain facilities, and market linkage services. The initiative prioritizes models that benefit smallholder producers, young farmers, and women-led producer groups.
Structured one-on-one and small-group bilateral matching sessions enabled Lao agricultural actors to engage directly with potential buyers and investors and explore concrete opportunities for trade and investment.
To ensure that the outcomes of the meetings lead to lasting results, a post-event tracking mechanism has been established. A designated focal point from the Ministry of Agriculture and Environment will monitor progress on all signed LoIs over a 90-day period, with technical support from FAO.
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