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The Food and Agriculture Organization of the United Nations (FAO) and the Ministry of Agriculture and Environment (MAE) launched a structured initiative to connect Lao chili pepper producers with international buyers and investors, marking a new milestone in the country's efforts to develop one of its most promising agricultural export commodities.

The Inception Meeting, organized by the Department of Planning and Cooperation (DOPC) in Vientiane Capital, brought together approximately 30 participants from across key government ministries, research institutions, producer organizations, and the private sector. The meeting formally launched a two-step process: a Stock-Taking Survey and Value Chain Analysis, planned for mid-June 2026, followed by a Business Matching Event connecting Lao supply-side actors with international buyers and investors.
"This initiative is built on evidence, not assumptions. Before we bring investors to the table, we need to understand the actual conditions on the ground — what Lao chili pepper can deliver, where the gaps are, and what the real opportunities look like. That is what the Stock-Taking is designed to do. FAO is fully committed to supporting this process, and we are confident that, with the strong institutional participation we have seen today, it will produce credible and actionable results,"said Chanthalath Pongmala, FAO Assistant Representative in the Lao PDR.

"Chili pepper is grown across many provinces and is already part of everyday life in our communities. What we are doing now is looking at it differently — as a commodity with real market potential, something that can generate income, improve value chains, and bring in investment. When Lao chili pepper drew genuine interest at the FAO Hand-in-Hand Global Investment Forum in Rome last year, that was encouraging. we begin to follow through in a practical and organized way,"said Mr. Phommy Inthichack, Deputy Director General of DOPC, Ministry of Agriculture and Environment.
The initiative operates under FAO's Hand-in-Hand Initiative (HiH) — a data-driven approach to agricultural investment promotion that uses evidence on production efficiency, market access, and infrastructure to identify where investments are most likely to generate real returns. Chili pepper was selected as one of five priority HiH commodities in Lao PDR and was showcased at the HiH Global Investment Forum 2025 in Rome, where it attracted interest from investors across the value chain.

Step 1 of the initiative — the Stock-Taking Survey and Value Chain Analysis — will consolidate existing knowledge on production, value chain conditions, and market opportunities for Lao chili pepper, particularly in priority markets such as China and the Republic of Korea. The findings will feed into a Lao Chili Pepper Investment Brief, which will serve as the primary tool for Step 2: a Business Matching Event designed to facilitate direct engagement between Lao producers and exporters and international buyers and investors.
The meeting convened representatives from the Department of Agriculture (DOA), the Department of Agricultural Extension and Cooperatives (DAEC), the National Agriculture and Forestry Research Institute (NAFRI), the Ministry of Industry and Commerce (MOIC), the National Investment Promotion and Management Office (NIPMO), the Lao National Chamber of Commerce and Industry (LNCCI), and Lao farmer associations, among others. Participants agreed on institutional roles and responsibilities across both steps, identified data and information gaps to be addressed ahead of the Stock-Taking, and confirmed the initiative timeline.
FAO's technical support for the initiative is provided through TCP/LAO/4004 — "Strengthening Agricultural Investment Promotion in the Lao PDR" — a Technical Cooperation Programme under FAO's own resources. The initiative aligns with the Lao PDR's agricultural development priorities under the 10th National Socio-Economic Development Plan (NSEDP, 2026–2030) and supports smallholder income improvement and value chain upgrading.
KPL