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Agro-enterprise Development
Small-scale Agro-enterprise Development in the Uplands of Lao PDR and Vietnam (SADU)

agrodev_pro.jpgBudget: From 01/2003 to 12/2007 - CHF4,170,000 (approx. US$3,336,000)

Line Agencies:

  • Lao PDR – National Agriculture and Forestry Research Institute (NAFRI)/Ministry of Agriculture and Forestry (MAF)
  • Vietnam – Ministry of Agriculture and Rural Development (MARD) Partners
  • Lao PDR – Provincial and District Agriculture and Forestry Office,  the private sector/traders in Xieng
    Khouang and Luang Prabang Provinces
  • Vietnam – Provincial Departments of Agriculture and Rural Development, the private sector/traders in Thua Thien-Hue, Dak Lak and HoaBinh Provinces and District People's Committees.

Implementing Agency:

International Centre for Tropical Agriculture (CIAT), through the Regional Office for Asia in Vientiane – Lao PDR

Project Location:

  • Lao People’s Democratic Republic (Lao PDR) – Xieng Khouang and Luang Prabang Provinces.
  • Vietnam – Thua Thien-Hue, Dak Lak and Hoa Binh Provinces.

Background:

Poverty alleviation in remote upland areas, where access to markets are limited, is a critical issue to address in both Lao PDR and Vietnam. Agro-enterprise development can contribute to poverty alleviation by increasing and diversifying income, providing improved access to markets, improving product quality, adding value to raw products through intermediate processing, and providing service industries. The project proposes to develop approaches to agro-enterprise development at district and commune levels, which are appropriate to the economic, cultural and political settings in Lao PDR and Vietnam. These approaches will foster the continuation of agro-enterprise development after the project ends.

Overall Goal:

Significantly reduce rural poverty by developing sustainable agroenterprise initiatives for upland rural communities that generate income and employment opportunities through diversifying and adding value to the local natural resources.

Current Objectives:

  • Develop and pilot an Agro-Enterprise Development Process (AEDP) which leads to improved and more efficient product market chains and business development services;
  • Enhance the capability and capacity of government and partner staff to implement an agro-enterprise and market development process;
  • Institutionalise agro-enterprise development processes at local, district, provincial and national levels by stakeholders.

Approaches:

Government and non-government agencies in Vietnam are increasingly aware of the strategic role that agro-enterprises and markets play in local economic development and poverty reduction. However, these agencies often have limited understanding of how to best intervene to facilitate the growth and
strengthening of the agro-enterprise sector and boost its competitiveness in local, regional, national and international markets. The transition from traditional, production-oriented development initiatives towards market-based interventions and innovations is a difficult and challenging one.

The SADU project is designed to address these needs by providing partner institutions with the tools, methods and skills that will enable them to facilitate agro-enterprise development in a particular area or region. The AEDP, in particular, will guide district stakeholders in:

  • Selecting products/sub-sectors with market potential;
  • Prioritising interventions that enable access to growing and remunerative markets;
  • Implementing policy options aimed at creating an enabling environment for agro-enterprise and market development;
  • Developing “good practice” guidelines for replication in new areas.

Results Achieved and Expected:

In Lao PDR, SADU has scaled up activities from the original district of Paek in Xieng Khouang province to a total of 5 districts.The District and Provincial staff are proving themselves capable of implementing the AEDP, with some members emerging as potential trainers at district level. In Paek District, working with the peanut and livestock market chain has resulted in significant expansion in the area of peanut production, increase in farm gate prices of livestocks, additional income gained as well as the introduction of new Business Development Services (BDS). Farmers now have an increased awareness of market signals and gain market information through regular Zonal Market Networking Meetings that bring together private traders and farmers to discuss market opportunities.

Regular District Partner Meetings at Paek are starting to transform into a multi-sectoral District Committee for Economic Development. 

In Vietnam, based on the experiences gained in the piloting work in Nam Dong District SADU has scaled up to a total of 6 districts in 3 provinces. It is now embarking on the conduct of a series of rapid market appraisals. AEDP piloting is relative young in five of the six SADU districts, participation and involvement of local government agencies, mass organisations, farmers and private sector in the project have been positive.

By the end of the project, the Agro-enterprise Development Process will be fully piloted and modified for wider implementation in new provinces, in a second phase or by other partners. Impact will be measured in terms of improved livelihoods of target upland ethnic minority farmers, women groups and other private sector stakeholders through value addition and more effective market links as well as empowerment to engage in market systems. The knowledge and skills of Government and partner staff to facilitate the Agro-enterprise Development Process will be enhanced through capacity building and hands on experiential learning processes. The Agro-enterprise Development Process will be insitutionalised through the operation of appropriate platforms or networks at commune, zonal, district, provincial and national levels to promote agro-enterprise development with relevant stakeholders.

Information and Publications:

Contact:

Project Leader
Small scale Agro-enterprise Development
for the Uplands (SADU) in Lao PDR and Vietnam
Hanoi address: Laos Address:
House 12/283 Doi Can, CIAT-in-ASIA, NAFRI, Dong Dok,
Ba Dinh District, Hanoi, Vietnam Ban Nongviengkham, Vientiane, Lao PDR
Tel.: +84 4 762 32 34 Tel.: +856 21 770090
Fax: +84 4 762 32 36 Fax: +856 21 770091
E-mail: vn@saduproject.org E-mail: ciat-asia@cgiar.org

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