Page 14 - Agricultural innovation

to get the products to the hand of farmers such as cooperating with microfinance institutions with
special loan treatment. Besides, NGOs should also have practical doing guidelines and cooperation
with a business-integrated model, and should focus on building an entrepreneurial mindset amongst
farmers; therefore, farmers can engage in the long run.
3.2. Model of Hydroponic Agriculture in Laos

3.2.1. General information
Hydroponic vegetable farming has been widely applied to grow a variety of vegetables for more
than 15 years in Laos. The name ‘Agro Vege Farm’ has been increasingly known among Lao people
who visit the Paksong district, Champasack, the southern province of Lao. Now, Agro Vege Farm is
one of the largest hydroponic farming in this country. Agro Vege Farm is a name of a hydroponic
vegetable farm in that a foreign private company cooperates with the local government in the form
of a Public-Private Partnership (PPP). The investment in Agro Vege Farm started in 2017 when the
ambassador of Laos in Malaysia convinced the Malaysian businessman, the owner of Agrotech Pro
Ltd., to invest in hydroponic farming in Champasack province. Thereafter, the company contacted the
Provincial Division of Agriculture and Forestry in Champasack for visiting and assessing the potential
investment. After the meeting between the governor of Champasack and the owner of Agrotech Pro
company in Malaysia, the company decided to invest in the Paksong district, Champasack province.
The company currently cooperates with the Provincial Division of Agriculture and Forestry to develop
a project area of around 40 hectares. In the first phase, the company constructed infrastructure on
15 hectares, including 33 greenhouses for vegetable production, 1 greenhouse for quality control, 8
container dormitories, and 1 main dormitory. Investment in this phase is completed. The second phase
of the project has been operated on around 25 hectares. The investment of Agrotech Pro in Laos is
highly recognized as a great contribution to supplying clean vegetables for both domestic and foreign
markets, promoting the local economy and generating job opportunity for local workers.

3.2.2. Model development
Agro Vege Farm is a form of cooperation between the local government and a foreign private investor.
As a representative of the Champasack province, the Provincial Division of Agriculture and Forestry
contributes to the investment in the form of land while the foreign company invests in development.
The partnership between the local government and Agrotech Pro company brings great benefits to
both parties. For the private side, Public-Private Partnership (PPP) reduces its investment cost because
there is no land concession fee. Collaborating with the public sector also facilitates the company in the
document process—the local government benefits from having Agrotech Pro company as a partner
in many aspects. The company’s technology, innovation, and expertise can ensure the operational
efficiency of hydroponic farming. The contribution of the company to agriculture can reduce the risk
and direct investment of the local government. More importantly, the partnership between two parties
can promote the local economy and job creation.
Agro Vege Farm is not only hydroponic farming, but it is also a tourist destination. Each year,
there are thousands of local and foreign tourists come to visit the Paksong district because of its
weather, scenery, coffee plantation, and waterfalls. Agrotech Pro and the local government see the
potential to make a lot of profit from tourism, so the company develops the Agro Vege Farm as a form
of agritourism by integrating hydroponic farming and tourism. In addition to a variety of vegetables
in the greenhouses, visitors can enjoy several types of Agro Vege Farm products such as outdoor flower
gardens, rose gardens, and a variety of cactuses, strawberries, and iconic buildings. Tourists can eat
and buy fresh vegetables at the Agro Vege Farm restaurant.

Agricultural Innovation Review in CLV Countries 7