Cross-border trade between Lao People’s Democratic Republic and Thailand has been improved through a well-defined agreement and organized supply and demand chains.



With help from the Asian Development Bank (ADB)’s Technical Assistance for Expansion of Subregional Cooperation in Agriculture in the Greater Mekong Subregion, farmer-stakeholders, a private company from Lao-PDR, and government commerce authorities came up with an efficient public-private partnership model for commercial agriculture which benefited hundreds of farmers.



A multi-lateral cross-border trade agreement was sealed between Thai buyers (importers) and Lao sellers (exporters), with endorsements from the commerce authorities of Ubon Ratchathani province on the Thai side and Champasak province on the Lao-PDR side. This cross-border trade agreement specified minimum prices and volumes for 14 kinds of vegetables to be purchased by the Thai from Lao farmers through the company.



Trade support services had to be provided along with institutional arrangements to link the primary producers and markets more effectively and efficiently in the food supply chain. Field agents were hired, all of whom were themselves vegetable and fruit farmers. Along with farmers in their respective zones, they planned how each zone’s quota would be filled.



Around 100,000 tons of vegetables are traded across the border. From this trade, farmers received higher, more stable incomes, all thanks to the cooperation of the private sector, government, farmer-stakeholders, and ADB.