41 A new network on NTFP was established in July 2004 after the Joint Workshop on NTFP
Networking in Lao PDR. This workshop was co-organized by NAFRI, RECOFTC and SNV. Currently, SNV is actively running the network.
5.5 Private sector
Although government policy supports private sector development, its role in CFBM remains weak. Direct private involvement in CBFM is still limited to contract plantation and participation in the
management of National Biodiversity Conservation Areas NBCA. While private investors may provide technical services, they are not directly involved in the management of state production
forests or village forests.
With government policy supporting forest plantation, private sector involvement in commercial forest plantation in Lao PDR will likely increase ADB 2005. The government sees plantation as a
way to increase the country’s forest cover, while contributing to poverty reduction by generating revenue for the national and local economy. Large scale forest plantation also includes community
participation to provide benefits for local people. The benefits gained from this kind of intervention tend to vary. For instance, farmers who have lands and are capable can gain benefits
by working with the investors. Those families that do not have land will not benefit from the investment. Instead, they will have to sell their labor or rent out their land and even under some
circumstance sell the land to gain income. Some communities may also benefit from the development of infrastructure including road and other basic facilities provided by private sectors
in connection with their investment.
While data is limited there are numbers of private companies involved in the sector including; i Bouarapha Group, ii Oji Paper Company of Japan, which purchased BGA Lao Plantation Ltd.
about 40,000 ha in Khammouane and Bolikhamxay province, iii Phoenix Pulp and Paper Company of Thailand 12,000 ha in Savannakhet province, iv Advance Agro Pulp and Paper,
Ltd of Thailand 20,000 ha in Savannakhet province, and v Aditya Birla Group of India’s Pulp and Fiber Business 50,000 ha. There are other companies that have shown interest in forest
plantations in Lao PDR.
Furthermore, there are other types of private sector involvement which are emerging in conjunction with ecotourism. The emerging importance of the tourism sector has drawn more
attention towards eco-tourism, and numbers of tour operators are seeking opportunities to develop new tour destinations.
5.6 Donors
