30 Years of Cooperation Between France and Laos with AFD

30 Years of Partnership for Sustainable and Inclusive Development

Since its beginnings in Laos, AFD has established itself as a key partner in supporting the Lao government’s development priorities. AFD has worked closely with various stakeholders, including the public sector, civil society organizations (CSOs), the private sector, and local authorities. Through this cooperation, France, via AFD, has supported projects with lasting impacts in crucial sectors for the country. Over the years, AFD's efforts have focused on areas like rural development, agriculture, heritage preservation, urban development, biodiversity, energy, and water resource management. These projects have addressed Laos' economic, social, and environmental challenges, supporting its transition toward sustainable and resilient growth.

Flagship Projects for Concrete Results

Among the notable achievements is the Nam Theun 2 dam project, one of the country's largest energy initiatives. It has strengthened Laos' electricity production capacity and provided significant economic and social benefits for local populations. In addition, AFD has contributed to preserving and promoting Lao cultural heritage, particularly in Luang Prabang, a UNESCO World Heritage site, boosting both tourism and regional economic development. In agriculture, AFD’s work on developing sustainable tea and coffee value chains in northern Laos has improved small-scale farmers' livelihoods by facilitating access to local and international markets.

Strong Financial Commitments for 2021-2025

For the period 2021-2025, AFD has committed to mobilizing nearly 27 million euros to support new projects in Laos, with a focus on agriculture and rural development, which represent 55.7% of the total commitments, followed by the environment (7%), and the private sector, commerce, and tourism (23.5%). In 2024, AFD further reinforced its support by signing new financing agreements totaling 19.6 million euros. Key initiatives include 6 million euros for heritage preservation in Champasak and Savannakhet, 9 million euros to support the tea and coffee sectors (in partnership with the European Union), and 5 million euros for agricultural irrigation in Khammouane province.

Broad and Diversified Cooperation

AFD is also exploring new areas of cooperation with Laos, particularly within the "green roadmap" outlined by the French Embassy. This strategy aims to intensify efforts related to sustainable resource management and climate change mitigation. Three priority areas have emerged for future collaboration:

• Water resource management and support for the hydropower sector: Projects focused on optimizing hydropower dams for energy production and water resource management in response to extreme climate events.
• Innovative financing for biodiversity protection: Promoting new financing mechanisms to protect critical ecosystems in Laos.
• Climate change adaptation and disaster risk reduction: Collaborating with local authorities to build population resilience against climate impacts.

This long-term partnership between AFD and Laos remains a cornerstone for sustainable development, showcasing France’s ongoing commitment to fostering progress through international cooperation.

30-Year Exhibition at the French Embassy

As part of the 30-year celebration of AFD’s activities in Laos, a special exhibition highlighting key milestones and achievements will be displayed at the French Embassy in Vientiane. Starting immediately, visitors can explore this visual journey on the Embassy's walls, showcasing the impactful projects and collaborations that have shaped AFD’s contribution to Laos' sustainable development.

 

Press contacts : 

Clara VIDAL : vidalc1@afd.fr

jean-Edouard NASLIN : naslinje@afd.fr