VIENTIANE: Laos is stepping up efforts to export chilli peppers to China and the Republic of Korea through a new initiative aimed at attracting foreign investment and expanding agricultural trade.
The initiative was launched at a meeting organised by the Department of Planning and Cooperation in Vientiane. About 30 representatives from government ministries, research institutes, producer groups and the private sector attended the meeting, according to the FAO in Laos.
The project will begin with a stock-taking survey and value chain analysis next month. This will be followed by a business matching event linking Lao producers and exporters with international buyers and investors.
The stock-taking survey and value chain analysis will collect information on production capacity, supply chains and export opportunities for Lao chilli peppers. The study will focus on potential markets including China and the Republic of Korea.
Deputy Director General of the Department of Planning and Cooperation, Ministry of Agriculture and Environment, Dr Phommy Inthichack, was quoted as saying “Chilli is grown in all 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 chilli pepper drew genuine interest at the FAO Hand-in-Hand Global Investment Forum in Rome last year, that was encouraging. We began to follow through in a practical and organised way,” he added.
The initiative operates under the Food and Agriculture Organisation of the United Nations’ Hand-in-Hand Initiative, which promotes agricultural investment using data on production, infrastructure and market access.
FAO Assistant Representative in the Lao PDR, Mr Chanthalath Pongmala, said “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 chilli pepper can deliver, where the gaps are, and what the real opportunities look like. That is what stock-taking is designed to do.”
Chilli pepper is one of five priority commodities selected under the programme in Laos. The product was presented at the Hand-in-Hand Global Investment Forum 2025 in Rome, where it attracted interest from investors involved in agricultural production, processing and trade. The findings will contribute to a Lao Chilli Pepper Investment Brief, which will be used to support discussions between Lao businesses and overseas investors during the business matching event.
According to the presentation, Lao chilli peppers have several advantages, including year-round production, growing domestic demand, and opportunities to promote the crop as an organic or clean agricultural product for overseas markets.
But several challenges were identified. Limited cold storage systems and processing facilities continue to restrict value-added exports, while high production costs and low yields remain concerns for producers.
The presentation also noted increasing competition from lower-priced imported products and unstable market prices.
Climate-related risks, including floods and droughts, were also raised as possible threats to stable production and supply.
Meeting participants came from the Department of Agriculture, Department of Agricultural Extension and Cooperatives, National Agriculture and Forestry Research Institute, Ministry of Industry and Commerce, National Investment Promotion and Management Office, the Lao National Chamber of Commerce and Industry, and farmers’ associations. - Vientiane TImes/ANN
