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Data Collection Survey on Economic Development of the Southern Region in Lao People's Democratic Republic

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Data Collection Survey on Economic Development of the Southern Region in Lao People's Democratic Republic Lao People’s Democratic Republic (Lao PDR) Data Collection Survey on Economic Development of the Southern Region in Lao People’s Democratic Republic Final Report October 2012 Japan International Cooperation Agency (JICA) International Development Center of Japan, Inc. Kaihatsu Management Consulting, Inc. IC Net Limited Oriental Consultants Co., Ltd. ＬＡＯ JR 12-005 Lao People’s Democratic Republic (Lao PDR) Data Collection Survey on Economic Development of the Southern Region in Lao People’s Democratic Republic Final Report October 2012 Japan International Cooperation Agency (JICA) International Development Center of Japan, Inc. Kaihatsu Management Consulting, Inc. IC Net Limited Oriental Consultants Co., Ltd. ＬＡＯ JR 12-005 N Major road Capital Railways Major cities Hanoi Hai Phong Port National boundary Ports LuangPhabang ChangMai Laos Vientiane Thakhek Udon Thani Savannakhet Hue Yangong Danang KonKaen Mawlamyine Thailand Ubon Ractathani Khorat Pakse Poipet Puleiku Shem Reup Bangkok Stung Treng Laem Chabang Port Cambodia PhnomPenh Phnom Penh Port Ho Chi MinhCity Shihanoukville Port Cai Mep Port 0 100 200 300 400 500km Study Area Data Collection Survey on Economic Development of the Southern Region in Lao People’s Democratic Republic Final Report Table of Contents 1. Introduction ............................................................................................................... 1 1.1 Background of the study ........................................................................................... 1 1.2 Study objectives ........................................................................................................ 1 1.3 Study area ................................................................................................................. 2 1.4 Study schedule .......................................................................................................... 2 1.5 Composition of this report ......................................................................................... 3 2. Socio-economic Situation .......................................................................................... 5 2.1 Economic Development in Lao PDR ......................................................................... 5 2.2 Socio-economic conditions of the southern region ................................................... 9 3. Issues and Development Potentials ........................................................................ 49 3.1 Analytical framework ............................................................................................... 49 3.2 Socio-economic situation ........................................................................................ 54 3.3 Issues on economic development ........................................................................... 62 3.4 Potential for Economic Development ...................................................................... 67 4. Economic Development Strategy ............................................................................ 73 4.1 Development vision ................................................................................................. 73 4.2 Guiding principles of development strategy ............................................................ 87 4.3 Development strategy and its stepwise implementation ......................................... 91 5. Economic Development Program ........................................................................... 97 5.1 Programing of development strategy ...................................................................... 97 5.2 Rural and community development based on “One-day Economic Areas” (component 1) ......................................................................................................... 98 5.3 Developing global linkage (component 2) ............................................................... 99 5.4 Enhancing support functions of cities (component 3) ........................................... 100 5.5 Implementation schedule of program .................................................................... 101 6. Conclusion and Recommendation ........................................................................ 103 6.1 Conclusion ............................................................................................................ 103 6.2 Recommendation .................................................................................................. 104 i List of Figures Figure 1-1 Southern region of Lao PDR ............................................................................2 Figure 1-2 Study schedule .................................................................................................3 Figure 2-1 Changes of population and nominal GDP per capita from 1980 to 2011 ......... 5 Figure 2-2 Population distribution in southern Laos ........................................................ 10 Figure 2-3 Poor districts and poorest districts in the southern region .............................. 13 Figure 2-4 Production volume and harvesting areas for coffee beans ............................ 15 Figure 2-5 Production volume and harvesting area for vegetables ................................. 18 Figure 2-6 Production volume and harvesting area for cassava ..................................... 20 Figure 2-7 Number of visitors (left) and occupancy rates of accommodation facilities (right) .......................................24 Figure 2-8 Locations of local industry sites ......................................................................26 Figure 2-9 Location of Kumbans in which the study team conducted detailed interviews ...............................................................31 Figure 2-10 Current situation of roads and bridges improvement in the southern region ..................................................39 Figure 2-11 Situation of mining concessions in the southern region ................................. 46 Figure 3-1 Classification of natural and agricultural characteristics .................................50 Figure 3-2 Classification of land and economic activities ................................................51 Figure 3-3 Logistics flow of the 3 economic regions ........................................................53 Figure 3-4 Chains of economic issues outside of the Bolaven Plateau ........................... 63 Figure 3-5 Chains of economic issues at the Bolaven Plateau ....................................... 65 Figure 4-1 Conceptual image of development vision: Developing, enhancing and networking “One-Day Economic Area” .............. 74 Figure 4-2 Production of cabbage and Chinese cabbage to Thailand ............................. 78 Figure 4-3 Trading system of cabbage and Chinese cabbage to Thailand ..................... 79 Figure 4-4 An example of supply of labor within “One-Day Economic Area” ................... 80 Figure 4-5 Production of cassava for export to Vietnam ..................................................81 Figure 4-6 Flows of contract farming (pig and chicken) ...................................................83 Figure 4-7 Plantation under the direct management of foreign companies ..................... 85 Figure 4-8 Production by land-owning farmers and transportation and processing by traders .......................................................86 Figure 4-9 Matching of development issues and development strategies ....................... 92 Figure 4-10 Step-wise development strategy ....................................................................93 Figure 4-11 Development of global linkage ....................................................................... 95 ii Figure 5-1 Adopting “One-Day Economic Areas” to an economic development program ....................................................................97 Figure 5-2 Economic development program for the southern region .............................. 98 Figure 5-3 Project location under developing global linkage (Component 2) ................ 100 Figure 5-4 NR13 Bypass and streets to be improved or developed .............................. 101 Figure 5-5 Road map for program implementation ........................................................102 iii List of Tables Table2-1 Socio-economic situation of Laos and other GMS member economies in 2010 ...........................................................6 Table2-2 Imports from the surrounding countries to Laos ............................................... 7 Table2-3 Exports from Laos to the surrounding countries ...............................................7 Table2-4 Approved amount of Foreign Direct Investment ............................................... 8 Table2-5 Changes of external environment of Laos in recent years ............................... 8 Table2-6 Area and population of the southern region ..................................................... 9 Table2-7 Numbers of districts, Kumbans, and population in the southern region ........... 9 Table2-8 GRDP of each province in 2010 .....................................................................11 Table2-9 Monthly household consumption amount and percentage of personal consumption by provinces and regions ..........................................................11 Table2-10 Details of expenditure by regions and provinces ............................................12 Table2-11 Classification of industry .................................................................................14
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