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The First 5 Years Bamboo Development Strategy

(2011-2015)

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Houaphanh Province

The First 5 Years Bamboo Development Strategy (2011-2015), Houaphanh Province

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TABLE OF CONTENTS

Abbreviations Acknowledgements list of tables.............................................................................................3 list of figures............................................................................................3 EXECUTIVE SUMMARY.............................................................................6 I. Introduction……………………………………………………………………………….8

1. Why we need a strategy......................................................................8 II. Overview of Houaphanh Province ......................................................9

1. Location............................................................................................9 2. Economy...........................................................................................9 3. Demography......................................................................................9 4. Land use......................................................................................... 10

III. Overview of Bamboo ......................................................................10

1. A Global View of the Bamboo Industry................................................. 11 2. The Local Industry…………………………………………………………………………………………12 IV. Prospects and challenges in developing the bamboo sector in ouaphanh…………………………………………………………………………………….12

1. Prospects ........................................................................................ 12 2. Challenges ...................................................................................... 13

V. Development Plan.............................................................................15

1. Our Vision ....................................................................................... 15 2. Our Goals (what we intend to achieve by 2015).................................... 16 2.1 Strategic Components ..................................................................... 16

2.1.1 Sustainable Resource Management ......................................... 16 2.1.2 Bamboo Business Development .............................................. 16 2.1.3 Favorable Bamboo Policies to Promote the Development and Growth of the Bamboo Sector ........................................................................ 16

3. Our Objective 2010 -2015…………………………………………………………………………….16 3.1 Sustainable Resource Management ................................................ 17 3.2 Bamboo Business Development ..................................................... 17 3.3 Favorable Policy for Bamboo Development ...................................... 17

4. Our Geographic focus ...................................................................... 17 5. Indicative Action Plan…………………………………………………………………………………..18

6. Funding Strategy………………………………………………………………………………………….18 7. Monitoring and Evaluation……………………………………………………………………………18

VI. Institutional Arrangement...............................................................19 1. Provincial Task Force......................................................................................................... 19 2. District Bamboo Working Committee ......................................................................... 19 3. Village Bamboo Working Committee .......................................................................... 20


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ANNex I. Indicative action plan ............................................................21 Annex II. Monitoring and Evaluation………………………………………………33 references.............................................................................................37

LIST OF TABLES

Table 1. Monitoring and evaluation....................................................................... Table 2. Key Performance Indicators ....................................................................

LIST OF FIGURES

Figure 1. Bamboo stands .................................................................................... Figure 2. Map of Houaphanh Province ................................................................... Figure 3. Land Use Map of Houaphanh Province ..................................................... Figure 4. Kitchen utensils and baskets made of bamboo .......................................... Figure 5. Bamboo plantation ............................................................................... Figure 6. Bamboo mats ...................................................................................... Figure 7. Strategic Pyramid................................................................................. Figure 8. Priority areas for the bamboo development plan ....................................... Figure 9. Proposed organizational structure ...........................................................


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LIST OF ABRIVIATIONS DAFO District Agriculture and Forestry Office

DOIC Department of Industry and Commerce

DPI Department of Planning and Investment

GRET Groupe de Recherche et d'Échanges Technologiques

Ha Hectare

HP Houaphanh

Km Kilometer

LWU Lao Women Union

MSME Micro, Small and Medium Enterprise

NGPES National Growth and Poverty Alleviation Strategy

NSEDP National Social and Economic Plan

PAFO Provincial Agriculture and Forestry Office

PI Prosperity Initiative

SNV Netherlands Development Organisation

UNDP United Nations Development Programme

USD United States Dollar

WREA (Formerly STEA)

Water Resources & Environmental Agency (Science, Technology And Environmental Agency


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ACKNOWLEDGEMENTS This Bamboo Development Strategy document is researched and prepared by the Houaphanh provincial departments and is supported by SNV Netherlands Development Organisation’s advisory team, and in participation with Groupe de Recherche et d'Échanges Technologiques (GRET) and Prosperity Initiative (PI). It is interdepartmental efforts to build a common framework and clear directions to develop and manage a sustainable bamboo industry in Houaphanh Province. This work was completed under the overall supervision of Provincial governor’s cabinet office, and developed by the Department of Planning and Investment (DPI), the Department of Agriculture and Forestry (PAFO), the Department of Industry and Commerce (DOIC), and other relevant departments. Especially the bamboo taskforce consisting of department directors and selected technical staff coordinated the development of the bamboo development strategy. This document benefited from inputs provided by district officials, communities and private sector, who participated in interviews and a peer review discussions of earlier drafts of the current document. The final strategy document was edited by Mr. Vanhxay PHENGSUMMA, DPI Director, Mr. Phouvong SISOMHACK, PAFO Deputy Director, Mr. Vongphanh CHANNGAKHAM, Deputy Head of Investment Promotion, DPI. The overall layout, graphics and desktop publishing including editing were done by Mr. Sith SOUKCHALEUNPHONE. On behalf of the Houaphanh Provincial Government we express our sincere thanks to all stakeholders mentioned above, for their constant encouragement and support throughout the process, especially for useful suggestions and recommendations given during the bamboo strategy drafting and multi-stakeholder workshops.

Finally, we take this opportunity to extend our sincere appreciation to our family and friends, for all that they meant to us during the crucial time of the completion of our strategy.

PROVINCIAL GOVERNOR

Mr. Khamhoung HEUANVONGSY


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EXECUTIVE SUMMARY

1. Globally, bamboo is increasingly becoming an important natural resource

for economic as well as environmental reasons. The world bamboo market is expected to grow to USD 15-20 billion by the year 2017 with handicrafts, food (bamboo shoots) and furniture accounting for the largest share of the market. Bamboo as a timber substitute for flooring, panels and non-traditional furniture is an emerging significant market.

2. Bamboo has also important environmental regeneration qualities. Its water

absorption qualities help maintain soil stability. Its carbon sequestration properties make bamboo one of the better options to counter pollution caused by excessive carbon emission.

3. The province of Houaphanh has abundant untapped natural bamboo

resources. The provincial government recognizes the potential of bamboo to contribute significantly to the local economy and help alleviate the high incidence of poverty.

4. The bamboo industry in the province however, remains at an embryonic

state. There are critical constraints to the growth of the industry such as: vague government policies to support the bamboo sector, low level of technical and business skills, limited product offerings and lack of knowledge and access to markets.

5. While there are initiatives to help develop the industry, activities have often

been fragmented, uncoordinated and lacking a common direction. 6. This draft strategy paper therefore seeks to provide a common framework

and a clear direction in developing the bamboo industry in Houaphanh Province.

7. The strategic vision for Houaphanh is “to become the leading province in

Lao PDR in developing and managing a sustainable bamboo industry, providing “green gold“ (kham kieo) to the people and contributing to poverty alleviation”.

8. The strategic goals to be achieved by 2015 are:

♦ 1,000 hectares cultivated for bamboo plantation; ♦ 2,000 hectares of bamboo forest lands protected and managed

sustainably; ♦ 1 million U.S. dollars generated from the domestic and export trade

of bamboo.; and ♦ 1,000 jobs created by bamboo and bamboo-related businesses. ♦ Favorable and supportive policies approved and implemented regarding

land allocation/land rights, import and export tax reduction/ exemption, investment incentives and abolition of the quota system.

9. The strategy shall focus on 3 priority areas: Sam Neua, Sobbao and Vienxay.


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10. The strategic approach will pursue 3 main components: A. Sustainable resource management

♦ Protection and management of existing bamboo stands ♦ Propagation and cultivation of bamboo for individual and

communally owned plantations ♦ Planting of bamboo in degraded and critical areas (mountain slopes,

denuded areas, along river banks, etc.)

B. Bamboo Business Development ♦ Product development - Improve existing products (semi-processed,

handicrafts, household wares, semi-industrial); and test and develop new product (food, housing and construction, semi-industrial).

♦ Market development - Expand domestic and tourist markets, develop cross-border and export markets; improve existing products (semi-processed handicrafts); and test and develop new products.

C. Favorable Policy for Bamboo Development

♦ Favorable bamboo policies to promote the development and growth of the bamboo sector.

♦ Land allocation/ land use policy, forest users’ rights and quota system, import and export tax policy and business and investment incentives.

11. Strategy implementation shall be coordinated by a provincial task force to be organized by the provincial governor’s office. The task force shall be composed of provincial departments’ directors or their appointed representatives. District and village bamboo committees shall also make sure that people at different levels are involved in coordination, planning, implementation and monitoring. Sectoral activities shall remain the responsibility of the mandated government department.

12. A funding and resource mobilization strategy shall be developed by the task

force. The provincial government shall set aside a bamboo development fund to kick-start the implementation of the bamboo strategy. International organizations currently involved in bamboo development such as Prosperity Initiative, GRET and SNV shall augment this fund. These initial funds shall be leveraged to attract additional funding from bilateral and multi-lateral funding sources.


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Figure1. Natural Bamboo stands in Houaphahn.

I. INTRODUCTION 1. WHY WE NEED A STRATEGY Bamboo is often known as the “grass of life”. It is well known for its versatility, having an huge variety of applications ranging from food, medicine, fuel, to handicrafts, housing and construction materials. With the rapid depletion of forest resources worldwide, bamboo has become an important crop not only as an alternative to timber- based products but also as a medium for environmental protection and source of income. Bamboo is a natural resource growing abundantly in Houaphanh province (Figure 1). The crop is largely consumed domestically. The bamboo sector is characterized by small scale operations and limited markets (Boupha and Phimmavong, 2006). Aside from traditional bamboo crafts, there are a few small bamboo processing activities going on. Three international organizations have expressed interest and have started to undertake activities to develop the bamboo sub-sector. However, these initiatives are still fragmented, uncoordinated and without a clear direction and a common development framework. Boupha and Phimmavong (2006) found that bamboo has a high income-generating potential. The provincial government desires to make bamboo as an important contributor to the provincial economy and as means to alleviate poverty. However, the raw material is sourced primarily from natural bamboo forest. Therefore, without proper management, this resource may rapidly deplete. It is in this regard that this strategy paper is put forward. This paper therefore attempts to: ♦ provide a guide for all agencies, government, private and international

donor organizations, to work together in developing the bamboo sector in the province;

♦ make clear the aspiration and ambitions of the province and the way to achieve them;

♦ define the priorities for action and investment; ♦ provide a clear plan to support the National Social and Economic Plan

(NSEDP) and the National Growth and Poverty Alleviation Strategy (NGPES); and

♦ Provide donors with an overview for potential funding and technical support.


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II. OVERVIEW OF HOUAPHANH PROVINCE 1. LOCATION Houaphanh is situated in the northern part of Lao PDR (Figure 2). The province is bounded in the north by Vietnam, in the south and east by Xiengkouang and in the west by Luang Prabang provinces. The province covers a total land area of about 1,750,566 hectares. Houaphanh is around 650 kilometers away from the capital city of Vientiane.

2. ECONOMY Houaphanh is one of the least developed provinces in Lao PDR, with 52% of its population in poverty (United Nations Development Programme, 2006). The total income of the province in 2005 was 45.51 billion kip1 while expenditures amounted to 66.53 billion kip. The average annual per capita income in 2005 was 1,980,000 kip. Total unemployment for the same year was 11,595. The main industry sectors are Agriculture and Forestry, Services, and Manufacturing (Provincial Tourism Office Houaphanh, 2007). The Agriculture and Forestry Sector which accounts for 64.13% of the economic activity is mainly focused on growing crops like rice, maize, cassava, ginger, and soya bean and growing livestock. Services which accounts for 23.64% of the economic activity is mainly on tourism which generated 5% of the total provincial income (>2.5 billion kip). The Manufacturing Sector which accounts for 12.23% of the economic activity, includes weaving, mining and small-scale manufacturing (furniture, drinking water and bamboo chopsticks). 3. DEMOGRAPHY There are 9 ethnic groups which make up the province population of 288,287 (Provincial Tourism Office Houaphanh, 2007). Houaphanh Province is divided into 8 districts consisting of 730 villages and 45,453 households. The average

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! USD = 8,500 kip

Figure 1. Map of Houaphanh Province


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household size is 6.34 persons. The provincial capital is Xam Neua, and each district has a small district town. The population density is 17 persons per square kilometer, with the rural population accounting for 90,14% of the total (DPI, 2008).

4. LAND USE Natural forests dominate the hilly landscape of Houaphanh Province, although a substantial area is secondary forest (Figure 3). Bamboo is abundant in the districts of Viengxai, Sobbao, XamNeua and Ett (Lao National Forest Inventory, 2004). Of the total area devoted to bamboo (526,238 ha), 90% are in upper mixed deciduous forest. Only 17,870 hectares are devoted purely to bamboo.

Shifting cultivation remains as the dominant land-use pattern in Houaphanh Province. Forests are cut and burned at intervals ranging from 5 to 20 years based on the traditional cycle of rotational shifting cultivation.

The average bamboo plantation holding size of families in the province is 247 m2 for an average of 18 clumps per household (Boupha and Phimmavong, 2006).

III. OVERVIEW OF BAMBOO Bamboo, a versatile giant grass, is a very important plant both economically and ecologically. It is one of the world’s most versatile building materials, specifically in areas where timber is in short supply. More than 1,000 different products are derived from bamboo (Lewington, 1990). In East Asia and Southeast Asia, bamboos are extensively used in everyday life as building materials, food source and as a highly adaptable raw material for a variety of products. The plant plays an important role in the social and economic life of the Lao people particularly those living in remote areas. Besides being a traditional source of food and medicine, bamboo is processed into handicrafts

Figure 2. Land Use Map of Houaphanh Province


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and artifacts (Figure 4).

Bamboo is also important for its environmental regeneration qualities. It absorbs more water than many other plants helping maintain soil stability. It has great potentials for checking soil erosion and stabilizing road embankment. As a fast growing plant, bamboo can provide rapid vegetative cover to deforested areas (Figure 5). A bamboo plantation has carbon sequestration properties and can absorb twice as much metric tons of harmful carbon dioxide per hectare compared to a similar forest. It is also able to produce 35 to 46% more beneficial oxygen than most plants. Hence, it is one of the better options to counter pollution caused by excessive carbon emission.

1. A GLOBAL VIEW OF THE BAMBOO INDUSTRY The world bamboo market is currently worth USD 7 billion/year, of which China has USD 5.5 billion. The largest markets are handicraft (USD 3 billion), bamboo shoots (USD 1.5 billion) and traditional furniture (USD 1.1 billion). Traditional markets cover handicrafts, blinds, bamboo shoots, chopsticks and traditional bamboo furniture which account for 95% of the market. Emerging bamboo markets are wood substitutes such as flooring, panels and non-traditional furniture. The global market is expected to grow to USD 15-20 billion/year in 2017. Non-traditional markets are expected to claim 45% of the total bamboo market. China is one of the most important markets in the region and the world with 3.4 million hectares of bamboo of which 85% is consumed domestically. The Mekong region currently generates USD 261 million/year, but the selling and processing of whole bamboo poles has been inefficient and markets have not been developed.

Figure 5. Bamboo plantation

Figure 4. Kitchen utensils and baskets made of bamboo


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2. THE LOCAL INDUSTRY While there is an abundance of natural bamboo resources in Laos and in Houaphanh in particular, there is little to speak of in terms of the bamboo industry in Lao. The bamboo industry is in its infant stage. Very few small bamboo processing businesses are involved in producing simple products and are barely able to survive. Most activities are at a very micro-level involving bamboo shoot collection, mat making (Figure 6) and traditional handicraft and artifact making.

IV. PROSPECTS AND CHALLENGES IN DEVELOPING THE BAMBOO SECTOR IN HOUAPHANH

The potential for bamboo is huge but at the same time there is a multitude of challenges to overcome. To help craft the bamboo strategy, the following prospects (opportunities) and challenges (constraints/ issues) were identified: 1. PROSPECTS 1.1 Abundant bamboo resources – Houaphanh province has an abundance of a variety of bamboo resources which remains largely untapped for economic use. The province has also large tracts of land available that can potentially be used to cultivate bamboo. 1.2 Expanding global market – There is an increasing demand for bamboo both globally and locally. Globally, the market is expected to double in 5 years, with bamboo becoming a practical substitute for timber-based products. 1.3 Growing cross-border market – The bamboo industry is rapidly growing in Vietnam. To cope with the growth, there will be a huge demand for raw and semi-processed bamboo to feed the cross-border market. 1.4 Underdeveloped local Lao market - There is an opportunity to improve

Figure6: bamboo mats and Furniture


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and expand the local market, both for handicraft, furniture and house wares with the expected growth in the tourism sector and the expected increase in per capita income. 1.5 Comparatively low labor cost – Low wage rates in Lao PDR provides a key advantage over other countries involved in bamboo production and processing. China has so far been the biggest bamboo processor. But with increasing labor costs, it may soon explore outsourcing production to other locations with a better cost advantage. 1.6 Environmental benefits of bamboo – Developing a bamboo industry is an attractive proposition in the wake of worldwide environmental concerns. Aside from its soil improvement capability, bamboo has double the carbon sequestration capacity relative to other plants. 1.7 Special interest of the Provincial Government - The provincial government actively supports the development of bamboo as potentially one of the more important economic sectors in the province that can contribute to economic growth and poverty alleviation. 1.8 Consistency with national development plans and priorities -The development of the sector aligns well with the National Social and Economic Development plan (NSEDP) as well as with the National Growth and Poverty Eradication Strategy (NGPES). 1.9 High community interest - Villagers in Houaphanh are interested and willing to participate in bamboo development activities such as bamboo cultivation and bamboo handicraft making. 1.10 Age-old traditional skills – Bamboo craft is an age-old skill among the different and diverse ethnic groupings in Houaphanh. There is an opportunity to revive and promote the distinct products and designs that are unique to the province. 1.11 Growing interest of international development organizations - There are currently 3 international organizations (GRET, PI and SNV) which are interested in developing the bamboo sector in Houphanh. 2. CHALLENGES 2.1 Poor market information and linkage - There is little knowledge of the needs and wants of potential markets. The link with cross-border markets particularly Lao’s next door neighbors Vietnam and China has not been explored. As such, the province has very little or no experience in international trade. 2.2 Limited products available – Products available are very limited, ranging raw materials or semi -processed to few simple processed products. Traditional crafts exist but they cater more to local needs than to growth markets.


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2.3 Weak industry base – There is no significant industrial processing with the capability to transform raw materials into higher value processed products. Without an industry base, demand for raw materials is weak and does not encourage growing of bamboo at scale. 2.4 Low technology level – Current level of technology for bamboo is assessed as low at the village and processor level. For the bamboo industry to flourish, improved and appropriate technology has to be sourced and introduced. Technology upgrading is needed starting from harvesting to post-harvest treatment, semi-processing, processing and finishing. 2.5 Limited know-how - There is little knowledge in the province in developing bamboo as a major industry. There is a need to upgrade knowledge as well as skills in bamboo cultivation, product development and diversification and market identification and penetration. 2.6 Vague policies supportive of bamboo development - A major roadblock to the development of the bamboo industry is the lack of clear and coherent policies on land allocation, taxation, business development and investment promotions.

2.7 Land use/allocation - Land is a major asset required in bamboo farming. Currently land use and land allocation have not been finalized and allocated. While villagers see the benefit of planting bamboo and are keen to allocate part of their land to bamboo cultivation, they are hesitant to initiate planting without clear policies on land use planning and land rights or land ownership.

2.8 Forest (and bamboo) management – The lack of clear forest management policies does not allow for the protection and efficient harvesting of existing bamboo stands. The quota system currently used to exploit bamboo resources from the forest needs to be reviewed to provide long-term benefits for upland communities. 2.9 Taxation policy – Tax policies are perceived to have a negative effect on the development of the bamboo industry. These taxes include those imposed on harvesting bamboo from the forest (quota system), small and medium enterprises and cross-border trading. 2.10 Investment policy – There is no clear investment policy to promote the bamboo industry and attract domestic as well as foreign investors.


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V. DEVELOPMENT PLAN This section discusses the key priorities of HP province in initiating the development of a sustainable bamboo industry. Figure 7 attempts to illustrate the structure of the plan in a clear and simple manner.

The vision represents the “dream” or what we want to see by 2020. The goals represent our ambitions - what we want to achieve by 2015. It provides us the basis to measure our successes and failures. Objectives are the milestones we need to achieve within the period 2010-2015. These are the small steps we need to take to be able to reach our goals. 1. OUR VISION We see Houphanh as the leading province in Lao PDR in the development and management of a sustainable bamboo industry, providing “green gold“ (kham kieo) to the people and contributing to poverty alleviation. Our vision is guided by the following principles by which activities, programs and projects will be evaluated and prioritized: ♦ Maximization of returns by promoting value-adding processes and

products rather than exporting raw materials. ♦ Optimization of the benefits for the people of Houphanh with a fair and

equitable sharing of revenues between and among businesses, government, the communities at large.

♦ Involvement of and consultation with all stakeholders in the development and implementation of the plan.

♦ Ensuring protection of the environment.

Figure 7. Strategic Pyramid


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2. OUR GOALS (WHAT WE INTEND TO ACHIEVE BY 2015) Towards the realization of our vision, our ambition is to achieve the following goals by 2015. The following present our measures of success: ♦ 1,000 hectares cultivated for bamboo plantation ♦ 2,000 hectares of bamboo forest lands protected and managed

sustainably ♦ USD 1 million generated from the domestic and export trade of bamboo ♦ 1,500 jobs generated by bamboo and bamboo-related businesses ♦ Favorable and supportive policies approved and implemented regarding

land allocation/land rights, import and export tax reduction/ exemption, investment incentives and abolition of the quota system.

2.1 STRATEGIC COMPONENTS To achieve these goals we will pursue a 3-component strategy as follows: 2.1.1 Sustainable Resource Management ♦ Protection and management of existing bamboo stands ♦ Propagation and cultivation of bamboo for individually- and communally-

owned plantations ♦ Planting of bamboo in degraded and critical areas (mountain slopes,

denuded areas, along river banks, etc.) 2.1.2 Bamboo Business Development ♦ Product development

• Improvement of existing products (semi-processed, handicrafts, household wares, semi-industrial)

• Testing and development of new products (food, housing and construction, semi-industrial)

♦ Market development

• Expansion of domestic market and tourist market • Development of cross-border and export markets

2.1.3 Favorable Bamboo Policies to Promote the Development and

Growth of the Bamboo Sector

♦ Land allocation ♦ Forest users’ rights and quota system ♦ Import and export tax ♦ Business and investment incentives

3. OUR OBJECTIVES 2010 -2015 To reach our goal, we aim to achieve milestones or objectives between 2010


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and 2015. The objectives per component are as follows: 3.1 Sustainable Resource Management ♦ Bamboo resource inventory and mapping completed (distribution, species,

density and utilization) ♦ 8 bamboo nurseries set-up ♦ 2 bamboo demonstration farms established ♦ 8 post-harvest facilities established ♦ 8 protected bamboo sites identified, maintained and managed ♦ 2 bamboo forest parks established

3.2 Bamboo Business Development ♦ 15 new MSMEs involved in the bamboo sector ♦ 6 community groups organized involved in bamboo product making ♦ 10 products (new and old) expanded and diversified (handicraft, semi-

industrial, etc.) and quality and pricing improved ♦ Marketing database established ♦ 10 Community-based and 2 District-based training and demonstration

centers set-up ♦ 1 Trade Fair organized per year ♦ 5 sister city business partnership agreements with Vietnam and other

countries involved in bamboo-related business

3.3 Favorable Policy for Bamboo Development ♦ Policy on individual and communal land rights/land allocation approved

and implemented ♦ Policy on Tax exemption for MSMEs, import and export incentives,

approved and implemented ♦ Policy to provide incentives to investors approved and implemented ♦ Policy to abolish/minimize tax (quota) for harvesting natural bamboo

stands approved and implemented

4. OUR GEOGRAPHIC FOCUS The bamboo development plan will focus on three main areas: Xamneua, Viengxay and Sopbao (Figure 8). Expansion of the plan will be considered depending on the progress achieved in the priority areas and availability of funding.


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The average bamboo plantation holding size of families in the province is 247 m2 for an average of 18 clumps per household (Boupha and Phimmavong, 2006). 5. INDICATIVE ACTION PLAN “Please see the ANNEX I” 6. FUNDING STRATEGY The provincial government of Houaphanh shall set up an initial bamboo development fund with an initial allocation of USD____ from the province. SNV, GRET and PI shall augment this fund to undertake initial activities. The bamboo development fund shall be used by the province as a leverage to secure funding from international donors. The provincial government, with the active involvement of the provincial departments shall prepare funding proposals and discuss potential funding with interested donors. Resource mobilization shall be the responsibility of departments concerned with support provided by PI, GRET and SNV. 7. MONITORING AND EVALUATION PLAN “Please see the annex II”

Figure 8. Priority areas for the bamboo development plan


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VI. INSTITUTIONAL ARRANGEMENT While activities other than the strategy will be implemented through the concerned government departments, a new structure will be put in place to ensure that the bamboo strategy is given the attention and focus to achieve the desired results (Figure 9).

1. PROVINCIAL TASK FORCE The provincial government of Houaphanh will set up a bamboo task force as an apex body to oversee the implementation of the strategy. The task force shall be composed of the department heads (or their assigned representatives) from DPI, DOIC, PAFO, STEA as well as representatives from the private sector and international donor organizations. The chair of the task force shall be appointed by the governor. The main responsibilities of the task force are: ♦ to oversee overall implementation of the strategy; ♦ to ensure coordination among different departments, donor agencies and

international organizations; ♦ to initiate regular strategy reviews and consultation meetings on a semi-

annual basis; and ♦ To revise and adapt the strategy and operational plans based on the

changes in the social, economic and political situation.

2. DISTRICT BAMBOO WORKING COMMITTEE The District committee shall be in charge of planning and coordinating all activities at the district level. The committee shall be composed of district officers from the relevant departments and associations (DOIC, PAFO, LWU, etc.) and representatives from the private sector. The chair of the district committee shall be appointed by the District governor in close consultation with the provincial task force. The main responsibilities of the task force are: ♦ to plan and coordinate activities at the district level; ♦ to conduct regular reviews and resolve problems at the district level;

Figure 9. Proposed organizational structure


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♦ to revise plans and activities based on the changes in the social, economic and political situation in consultation with the provincial task force; and

♦ To report progress of implementation to the task force. 3. VILLAGE BAMBOO WORKING COMMITTEE The Village committee shall be in-charge of coordinating activities at the village level. The committee shall be composed of the village chief and representatives from government agencies working in the villages. The village committee shall work closely with the district bamboo committee in the implementation of plans and monitoring of work progress.


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ANNEX I. INDICATIVE ACTION PLAN

INDICATIVE

ACTION

PLAN

ACTIVITY LOCATION TIME FRAME

AGENCY/ PERSON

RESPONSI-BLE

AMOUNT OF FUNDS REQUIRED

SOURCE OF FUNDS

Strategy: Sustainable Bamboo Resource Management

Organize the survey teams. Vienxay and Sopbao

1st Q 2011

PAFO

Design survey plan . Xamneua 1st Q 2011

PAFO

Conduct desk review and conduct field survey.

Vienxay and Sopbao

1st Q 2011

PAFO

Compile and analyze the data. Xamneua 1st Q 2011

PAFO

Target 1:

Bamboo resource inventory and mapping completed. (distribution, specie, density and utilization )

Prepare and submit report. Xamneua 1st Q 2011

PAFO

Awareness-raising session with villagers on bamboo nursery set-up.

Vienxay and Sopbao

2nd Q2011 PAFO

Identify species with commercial potential.

Vienxay and Sopbao

2nd Q2011 PAFO

Develop and prepare manual on nursery development.

Vienxay and Sopbao

2nd Q2011 PAFO

Train PAFO/ DAFO and villagers in nursery establishment and propagation techniques

Vienxay and Sopbao

2nd Q2011 PAFO

Target 2:

8 bamboo nurseries set-up

Identify potential villagers (or group of villagers) who are interested, motivated and able to engage in nursery development on

Vienxay and Sopbao

2nd Q2011 PAFO


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a co-financing basis.

Prepare and establish nursery sites.

Vienxay and Sopbao

2nd Q2011 PAFO

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Identify potential villagers willing and able to engage in bamboo farming on a co-financing basis.

Vienxay and Sopbao

2nd Q2011 PAFO

Identify and select appropriate sites for demonstration farms.

Vienxay and Sopbao

2nd Q2011 PAFO

Develop farm plan and layout. Vienxay and Sopbao

2nd Q2011 PAFO

Plan selected bamboo species. Vienxay and Sopbao

2nd Q2011 PAFO

Target 3:

4 bamboo demonstration farms established.

Develop manual for demonstration farm establishment.

Xamneua 3nd Q2011 PAFO

Identify appropriate post-harvest technologies and facilities required.

Xamneua 4th Q 2011

STEA

Train villagers and staff in post-harvest techniques and establishment of post-harvest facilities.

Vienxay and Sopbao

4th Q 2011

STEA

Pilot techniques and construct prototype facility in 1 village.

Vienxay and Sopbao

4th Q 2011

STEA

Target 4:

At least 8 village level post harvest facilities established.

Based on result of pilot, identify other priority villages.

Vienxay and Sopbao

4th Q 2011

STEA USD1,000


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Create awareness among villagers on post-harvest facilities and determine appropriate management arrangement (individual or group) on a co-financing basis.

Vienxay and Sopbao

4th Q 2011

STEA

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Construct post harvest facilities. Vienxay and Sopbao

1st Q 2012

STEA Target 4:

At least 8 village level post harvest facilities established.

Develop manual on post-harvest techniques and construction of facilities.

Xamneua 1st Q 2012

STEA

Identify and select potential bamboo forest areas for pilot sites.

Vienxay and Sopbao

1st Q 2012

PAFO

Make an inventory and map bamboo forest.

Vienxay and Sopbao

2nd Q 2012

PAFO

Develop a sustainable community- based management plan.

Vienxay and Sopbao

2nd Q 2012

PAFO

Develop the regulations, guidelines and manual in the management of the bamboo resources.

Vienxay and Sopbao

2nd Q 2012

PAFO

Train villagers on sustainable harvesting and management of natural bamboo stands.

Vienxay and Sopbao

2nd Q 2012

PAFO

Target 5:

8 protected bamboo sites identified, maintained and managed.

Determine the best management structure to implement the plan (community or individually managed).

Vienxay and Sopbao

2nd Q 2012

PAFO


24

Monitor management of the protected bamboo areas.

Vienxay and Sopbao

2012-1015

PAFO USD 3,000

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Identify potential sites. Vienxay and Sopbao

3rdQ 2012

PAFO

Collect data, zone and plan the bamboo forest park.

Vienxay and Sopbao

4th Q 2012

PAFO

Research and identify the species for conservation, demonstration/ experiment.

Vienxay and Sopbao

4th Q 2012

PAFO

Determine the most appropriate organizational set-up to manage the forest park.

Vienxay and Sopbao

1st Q 2013

PAFO

Develop the regulations, guidelines and manual for the park management.

Vienxay and Sopbao

2nd Q 2013

PAFO

Train staff on forest park management.

Vienxay and Sopbao

3rd Q 2013

PAFO

Establish the park. Vienxay and Sopbao

4th Q 2013

PAFO

Target 6:

2 forest park established as a gene bank and showcase of the diverse variety of bamboo.

Maintenance of the park. Vienxay and Sopbao

2013-2015

PAFO


25

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Strategy: Development of Bamboo Business

Identify potential entrepreneurs and investors.

Viengxay, Xamneua, Sopbao

2011-2015

DOIC

Raise awareness on business opportunities in the bamboo sector .


2011-2015

DOIC

Train and provide technical and business advice to potential start-up MSMEs.


2011-2015

DOIC

Assist MSMEs in registration, financing and business star-tup.


2011-2015

DOIC

Target 1:

10 new MSMEs involved in the bamboo sector.

Provide marketing and business management support.


2011-2015

DOIC


26

INDICATIVE

ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Identify and select the villages. Vienxay and Sopbao

1st and 2nd Q 2011

DOIC

Raise awareness among community member and identify potential leaders.

Vienxay and Sopbao

2nd and 3rd Q 2011

DOIC

Organize group and train leaders and members on group dynamics/ mechanics.

Vienxay and Sopbao

3rd and 4th Q 2011

DOIC

Develop and establish organizational goals, plans, management structure, rules and regulations.

Vienxay and Sopbao

4th Q 2011

DOIC

Identify bamboo making activity and train group on production and marketing techniques

Vienxay and Sopbao

1st Q 2012

DOIC

Target 2:

6 community groups organized and/or strengthened and undertaking bamboo product making activities.

Provide continuing training on group development and business management.

Vienxay and Sopbao

2012-2015

DOIC

Target 3:

10 products (new and old) expanded and

Identify and conduct technical and market feasibility of potential products for food, handicraft , house wares and semi-industrial.

Xamneua 2nd Q 2012

DOIC


27

diversified (handicraft, semi- industrial, etc.) and quality and pricing improved.

Test, evaluate and pilot identified potential new products for development.

Xamneua, Vienxay and Sopbao

2nd half of 2012

1st half of 2013

DOIC

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Based on pilots, develop guides and manuals (including economic and technical information) on new products.

Xamneua 4th Q 2013

DOIC Target 3:

10 products (new and old) expanded and diversified (handicraft, semi- industrial, etc.) and quality and pricing improved.

Conduct training on bamboo, production techniques.

Xamneua 2013-2015

DOIC

Design bamboo market information system.

Xamneua 3rd Q2011 DOIC

Train staff on collection, management and dissemination of market information.

Xamneua 2011- 2015

DOIC

Develop linkages with other institutions within Lao PDR and across border.

Xamneua 2011-2015

DOIC

Target 4:

Marketing data base and information system established

Provide regular updates on product trends, pricing to entrepreneurs, community groups and other users.

Xamneua 2011-2015

DOIC


28

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Identify potential site of bamboo training and demonstration center.

Vienxay and Sopbao

2nd Q 2011

DOIC

Determine management and implementation arrangement for community-based training and demonstration centers.

Vienxay and Sopbao

3rd Q 2011

DOIC

Layout and submit plan for center.

Vienxay and Sopbao

4th Q 2011

DOIC

Procure materials, equipment and machinery required.

Vienxay and Sopbao

1st Q 2012

DOIC

Construct center. Vienxay and Sopbao

2nd Q2012

DOIC

Target 5:

10 Community based Bamboo processing training and demonstration centers set up.

Conduct training and demonstration activities.

Vienxay and Sopbao

2012-2015

DOIC

Plan for trade fair. Xamneua 2nd Q 2012-2015

DOIC

Invite exhibitors from the province.

Xamneua 2nd Q2012-2015

DOIC

Solicit financial assistance from corporate and individual sponsors.

Xamneua 2nd and 3rd Q 2012-2015

DOIC

Target 6:

At least 1 Trade Fair organized per year.

Implement trade fair plan. Xamneua 4th Q 2012-2015

DOIC


29

INDICATIVE

ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Study and select potential international and regional areas/cities involved in bamboo production and processing.

Xamneua 2nd Q 2012

DOIC

Contact the chamber of commerce and/or other associations interested to tie up with the Houaphanh Chamber of Commerce and/or handicraft association.

Xamneua 3rd amd 4th Q 2012

DOIC

Discuss and negotiate a sister city partnership arrangement.

Xamneua 1st and 2nd Q 2013

DOIC

Formally sign agreement of partnership between sister cities.

Xamneua 3rd and 4th Q 2013

DOIC

Target 7:

5 sister city business partnership agreements with Vietnam and other countries involved in bamboo-related business.

Strengthen CCI and/or handicraft association to implement partnership arrangement.

Xamneua 2013-2015

DOIC

Strategy: Supportive Bamboo Policies

Review the current policy on land rights and land allocation.

Xamneua 1st half 2011

DPI/ Land Manage-ment Dept.

Target 1:

Policy on individual and communal land rights/land allocation approved and implemented.

Discuss with different interest groups the issues regarding current land rights/ land allocation.

Xamneua 2nd half 2011



30

INDICATIVE

ACTION PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Draft a policy on improving land rights and land allocation.



Approve revised land rights and policy on a pilot basis.

Xamneua 1st half of 2012


Select sites and pilot revised policy.

Xamneua

1st half of 2012


Target 1: Policy on individual and communal land rights/land allocation approved and implemented.

Monitor and recommend adjustment to policy based on progress of pilot.

Xamneua

1st half of 2012


Review the current taxation policies and practices.

Xamneua 1st half 2011

DPI/ Finance Dept.

Discuss with stakeholders/ interest groups the issues on the existing taxation policy.


DPI/ Finance Dept.

Draft and approve a revised taxation policy.


DPI/ Finance Dept.

Target 2: Policy on Tax exemption for MSMEs, import and export incentives, approved and implemented.

Pilot revised taxation policy. Xamneua 2012 -2013

DPI/ Finance Dept.


31

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Target 2: Policy on Tax exemption for MSMEs, import and export incentives, approved and implemented.

Monitor progress and make recommendations to improve taxation policy and expand to other areas.

Xamneua 4th Q of 2013

DPI/ Finance Dept.

Review current policy incentives to attract investors.

Xamneua 2nd Q 2011

DPI

Determine the profile of investors the province wants to attract.

Xamneua 3rd Q 2011

DPI

Develop an investment incentive scheme to encourage target investors to invest.

Xamneua 4th Q 2011

DPI

Approve investment policy. Xamneua 1st Q 2012

DPI

Target 3:

Policy to provide incentives to investors approved and implemented.

Develop information materials to reach potential investors.

Xamneua 2nd Q 2012

DPI


32

INDICATIVE ACTION

PLAN


AGENCY/ PERSON

RESPONSI-BLE


SOURCE OF FUNDS

Review the current quota policy. Xamneua 2nd Q2010 DPI/ PAFO

Conduct consultation sessions with stakeholders/ interest groups.

Xamneua 3rd Q 2011

DPI/District Govern-ment

Draft a revise quota system (either develop an alternative system or abolish the quota system).

Xamneua 4th Q 2011

DPI/District Govern-ment

Pilot the revise system. Xamneua 1st Q 2012-2015

DPI/ District Govern-ment

Target 4:

Policy to abolish/minimize tax (quota) for harvesting natural bamboo stands approved and implemented.

Monitor revised system and recommend further policy improvement.

Xamneua 2012-2015

DPI/ District Govern-ment


33

ANNEX II. Table 1. Monitoring and evaluation TYPE OF REPORT

FREQUENCY INFORMATION/ CONTENT

SOURCE OF REPORT

USER OF REPORT

Baseline study

One time – preferably 1st Q of 2010

Provincial government

Annual report

Once a year Achievements for – targets versus actual results Facilitating and hindering factors Major challenges encountered and solutions to overcome challenges for the year Recommendations and plans for next year

Provincial Task force

Provincial governor’s office Ministries and department directors Donors / international agencies

Progress report

Quarterly Achievements for the quarter – targets versus actual results Facilitating and hindering factors Major challenges encountered and solutions to overcome challenges Recommendations and activity plans for next quarter

District task force

Provincial task force Governor’s office Department directors Donors/ international agencies

Progress report

Monthly Status of activities for the month - targets versus actual Main highlights for the month Issues encountered and solutions taken Activity plans for next month

Village task force

Provincial task force Donors/ international agencies


34

Table 1 continuation… TYPE OF REPORT

FREQUENCY INFORMATION/ CONTENT

SOURCE OF REPORT

USER OF REPORT

Mid-term review

After 2.5 years

Review of progress in achieving set goals

Review relevance, efficiency, effectiveness and sustainability of strategy

Recommendations for the next

Provincial Task force/ External consultants

Provincial task force members

Department directors/ representatives

Donors/ international agencies

End of Strategy Evaluation

End of 2015 Achievements -planned versus actual

Key facilitating and hindering factors

Areas for improvement Recommendations for

the next 5-year plan

Provincial Task force/ external consultants

All stakeholders


35

Table 2. Key Performance Indicators

KEY PERFORMANCE INDICATORS SOURCE OF INFORMATION

Impact Number of people with increased income Improvement in household income

Comparison of baseline and end of strategy report

Goal Number of hectares of bamboo plantations cultivated Number of hectares of bamboo forests sustainably managed and protected. Number of people employed in bamboo related businesses and activities Amount of revenues generated from domestic and export trade of bamboo Number of government policies supportive of bamboo development approved and implemented

Annual report Site visits/ random survey Data from government departments

Objectives/ Targets

Sustainable Resource Management Report on resource inventory and mapping submitted. Number of bamboo nurseries set-up. Number of bamboo demonstration farms established. Number of post harvest facilities established. Number of protected bamboo sites identified, maintained and managed. Number bamboo forest park established.

Progress reports Quarterly site visits


36

Table 2 continuation …

KEY PERFORMANCE INDICATORS SOURCE OF INFORMATION

Objectives/ Targets

Bamboo Business Development Number of new MSMEs involved in the bamboo sector. Number of community groups organized involved in bamboo product making. Number of products (new and old) expanded and diversified (handicraft, semi- industrial, etc.) and quality and pricing improved. Marketing database established. Number of Community-based and district training and demonstration center setup. Number of Trade Fairs organized per year. Number of sister city business partnership agreement with Vietnam and other countries involved in bamboo related business. Favorable Policy for Bamboo Development Policy on individual and communal land rights/land allocation approved and implemented. Policy on Tax exemption for MSMEs, import and export incentives, approved and implemented. Policy to provide incentives to investors approved and implemented. Policy to abolish/minimize tax (quota) for harvesting natural bamboo stands approved and implemented.

Progress reports Quarterly site visits


37

REFERENCES Boupha, L. and Phimmavong, S. (2006). Land Resource Mapping and Farmer Input Market Studies of the Vietnam-Laos Feasibility Studies. Cane and Bamboo Technology Centre (2008). National Bamboo Mission Under the Ministry of Agriculture, Government of India. Greijmans, M., Oudomvilay, B. and Banzon, J. (2007). Houaphanh Bamboo Value Chain Analysis, Identifying SNV’s Potential Advisory Services for the Development of the Bamboo Value Chain. Lewington, A. (1990). Plants for People. Oxford University Press, New York. Ministry of Information and Culture. Houaphanh Provincial Government. Retrieved from http://www.culturalprofiles.net/laos/Units/452.html Provincial Tourism Office (2007). Houaphanh Tourism Development Strategy 2007-2020. United Nations Development Programme (2006). National Human Development Report Lao PDR 2006.