The agriculture and forestry sector is also a sector that has attracted significant domestic and foreign investment, contributing considerably to the rapid economic development of Lao PDR (hereafter Laos) but also creating negative impacts on society and the environment. These negative impacts include encroachment of natural forest areas; release of chemicals into natural water sources; land grabbing; and labor exploitation...

Over the last ten years, China’s investments in Laos have increased greatly, and China is now the largest foreign investor in the country...Starting from November 2020, the LaoNational Chamber of Commerce and Industry, in conjunction with other relevant stakeholders...jointly adapted international and Chinese government guidance on sustainable investments in this sector to apply in Laos. This guide for agriculture and forestry investment also passed through consultation with the private sector (Chinese investors), civil society and other international organizations...

This guide aims to provide principles and implementing methods to promote responsible investment in the agriculture and forestry sectorin Laos...Section I describes this guide’s background and its use; Section II identifies principles of responsible investment; Section III outlines implementation of a responsible agriculture and forestry investment, with actions for investors to apply in all project phases...

Investors can refer to this guide to understand Lao regulations, as well as Chinese and international standards, while planning and implementing an investment, to ensure it is in line with both the Lao and Chinese governments’ requirements for sustainable investment...