On 23 October, Laos and France held a bilateral cooperation portfolio meeting chaired by Phonevanh Outhavong, Vice Minister of Planning and Investment and Siv-Leng Chhuor, French Ambassador to Laos.
During the meeting, participants have heard and exchanged viewpoints on the successes and challenges of the ongoing projects and learnt about the projects in the pipeline for the years 2025-2026.
This meeting marked an opportunity to recall thirty years of cooperation between Laos and France through its development agency Agence Française de Développement (AFD) in many sectors such as rural development, agriculture, heritage and sustainable tourism development. These thirty years of cooperation of AFD in Laos have allowed the realization of over EUR 300 million (USD 323.86 million) through 90 development projects, implemented by Lao authorities, technical partners and different French actors.
During the gathering, Siv-Leng Chhuor noted that 2024 was a record year for the granting and signing of new financing agreements totaling more than EUR 19.6 million (USD 21.2 million). Specifically, EUR 6 million (USD 6.49 million) was committed to heritage preservation and local development in Champasak and Savannakhet, EUR 9 million (USD 9.72 million) of co-financing from the EU to support the tea and coffee sectors for farmers in the Northern provinces of Laos and EUR 5 million (USD 5.41 million) to extend rural development activities and irrigation infrastructure in Khammouane province.
Jean-Pierre Marcelli, AFD’s Regional Director in South-East Asia, presented the key sectors on which AFD Group will be focusing over the next two years, namely water resource management and support for the hydroelectric sector, innovative financing for biodiversity protection and adaptation to climate change.
Several projects are also being appraised, including a project to support the establishment of a coordination center for water flows from hydropower dams and a project to support the Ministry of Industry and Trade with a view to improve women’s economic empowerment and promote gender equality.
On the same day, the French Development Agency (AFD) celebrated its 30 years of engagement in Laos during an official ceremony held at the residence of the French Embassy in Vientiane. This event marks three decades of fruitful cooperation between France and Laos, dedicated to sustainable development and international solidarity. Since 1993, AFD has mobilized over 300 million euros (USD 324 million) to finance more than 90 projects in various key sectors, contributing to the country’s socio-economic transformation.
Since its beginnings in Laos, AFD has established itself as a key partner in supporting the Lao government’s development priorities. AFD has worked closely with various stakeholders, including the public sector, civil society organizations (CSOs), the private sector, and local authorities. Over the years, AFD’s efforts have focused on areas like rural development, agriculture, heritage preservation, urban development, biodiversity, energy, and water resource management. These projects have addressed Laos’ economic, social, and environmental challenges, supporting its transition toward sustainable growth.
Among the notable achievements is the Nam Theun 2 dam project, one of the country’s largest energy initiatives. It has strengthened Laos’ electricity production capacity and provided significant economic and social benefits for local populations. In addition, AFD has contributed to preserving and promoting Lao cultural heritage, particularly in Luang Prabang, boosting both tourism and regional economic development. In agriculture, the French Development Agency’s work on developing sustainable tea and coffee value chains in northern Laos has improved small-scale farmers’ livelihoods by facilitating access to local and international markets.
The recent Laos-France cooperation review celebrated decades of partnership, highlighting progress in agriculture, rural development, heritage preservation, and sustainable tourism. This year’s commitments emphasize a shared vision for sustainable growth and economic resilience, strengthening Laos’ development goals and international ties.
