Lao People's Democratic Republic - 3.5 Food and Additional Suppliers

Food and Additional Suppliers

Rice continues to be the key staple food and the most important crop in Laos, covering about 60% of the total cultivated areas. Subsistence agriculture, dominated by rice cultivation in lowland areas, continues to account for 16% of the country’s total gross national product (GDP) and approximately 60% of the employed population works in the agricultural sector. More than 3 million tonnages were harvested in 2021/22.

Nationally, Laos has achieved food self-sufficiency, however, there still exists food insecurity situation owning to multiple factors, including high food, fuel, and agricultural input prices. As a generalization, approximately 1.04 million people (13.9%) are estimated to be moderately acute food insecure and 71,000 people (0.9%) are recorded as being severely acute food insecure.

Consumption of food items derived from own production remains the single most important source of food at household levels. Rice is mainly consumed. Laos’ per capita rice consumption is among the highest in the world at around 160 kg/year. Most Lao prefer to eat glutinous rice over other rice varieties, and almost all of the glutinous rice produced in Laos is used for domestic consumption. The stable food is supplemented by commonly grown vegetables including chilli, spring onion, garlic, mints, Asian leafy, lettuce, long bean, cucumber, eggplant, and cabbage.

Farming systems are rice-based, and diversification in Laos depends on the ability of farming households to maintain rice security. When this is achieved, resources are released for plantation, and cultivation of non-subsistence cash crops including commercial rice, maize, coffee, bananas, sugarcane and cassava which are key export products to China, Thailand and Vietnam.

The livestock sector contributes to about 20% of the agricultural GDP. Buffaloes, cattle, poultry, and pigs are the main livestock species and are mostly raised in the free-range husbandry systems. Livestock products function as unofficial bank savings generating valuable cash income for the rural population. The fishery is one of the main sources of income and allows diet diversification for the rural population. Natural rivers and water reservoirs are the habitats of many freshwater fish species. There are several types of aquacultures in the country, including cage culture with cages made of steel frames, bamboo, net or wood; rice-fish culture in irrigated areas; pond culture in small ponds created in rural lowland areas and used just to cover family requirements.

Aside from food and agricultural products, the most significant services that Laos exports include personal travel and transportation services, computer and information services, insurance services, and construction services. Personal travel and transportation services are also among the most important services.

Generic country information can be located from sources which are regularly maintained and reflect current facts and figures. For a general overview of country data related to the service and supply sectors, please consult the following sources:

The Observatory of Economic Complexity – MIT (OEC): (http://atlas.media.mit.edu/en/)

https://oec.world/en/profile/country/lao

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Lao People's Democratic Republic - 3.5.1 Food Suppliers

Overview

Purchasing of large quantities of food within Lao is difficult. Suppliers do not have access to large stocks nor can provide consistent quality. In many cases when tendering in the local market for food commodities suppliers import food from neighboring countries because they cannot source the commodities locally.

Additional information can be located from sources which are regularly maintained and reflect current facts and figures. For more specific and detailed overviews of food availability and market conditions, please consult the following sources:

WFP Vulnerability and Analysis Mapping (VAM): http://vam.wfp.org/

USAID Famine Early Warning Systems Network (FEWS NET): http://www.fews.net/

For more information on food supplier contact details, please see the following link: 4.10 Supplier Contact List.

Retail Sector

The majority of Lao people are not familiar with supermarkets and convenient stores/mini markets which are mostly accessible to the urban population in the capital city and major provinces. Local market and individually/family owned store at village and district level with a limited selection of goods and supply capacity are commonly used by the population. These local retailers usually have established relationship with wholesalers in provincial level by which the retailers are supplied.

Types of Retailers Available
Type of Retailer	Rank (1-5)
Supermarket – concentrates mainly in supplying a range of food, beverage, cleaning and sanitation products; have significant purchasing power; are often part of national/regional/global chains.	3
Convenience Store/Mini Market – medium sized shop; offers a more limited range of products than supermarkets; usually has good/stable purchasing power; may be part of chain or cooperative.	3
Permanent shop with strong supply capacity – individually/family owned store; usually offers fewer commodities and a limited selection of brands; good storage and reliable supply options.	1
Permanent shop with limited supply capacity – individually/family owned store; offers fewer commodities and a limited selection of brands; limited storage and unstable supply options.	1
Mobile Shop/Market Stand – individually/family owned store; usually offers fewer commodities and a limited selection of brands; may be found at outdoor markets, camps or unstable environments.	1

Please copy the below section for each wholesale-level supplier assessed.

Wholesale – Champahom Trading Import-Export Sole Co., Ltd.

There are two notable rice suppliers that have recently made news headlines as promising rice exporters from Laos to European and Chinese markets.

Supplier Overview
Company Name	Champahom Trading Import-Export Sole Co., Ltd.,
Address	Don Noun Village, Xaythany district, Vientiane Capital, Laos, Mobile: 020-2991 7778
Does the supplier have its own production / manufacturing capacity?	No, the supplier is directly engaged in encouraging and working with rice farmer groups who work on 600 hectares of rice plantation in four districts in Vientiane Capital that supply paddy rice
Does the supplier have its own retail capacity?	Yes, the supplier provides commodities directly to the consumer/end user and directly manages retail locations.
Does the supplier have its own transport capacity?	Yes, but limited
Does the supplier have its own storage facilities?	Yes, but limited
Approximate Turnover in MT	Milling capacity is 42 mt per day.
Payment Methods Accepted	Cash, transfer
Other Comments or Key Information	Champahom Trade Import-Export Sole Co.Ltd is a woman-led company. Originally a traditional, quasi-informal family trading business (Known locally as Bounhieng Phommixay Rice Mill), the company was formally registered in October 2016. It currently has 16 full-time employees. The supplier is a target for being supported and promoted as a model for rice exporter. With the utilization of modern technology (drying and milling), both to increase milling capacity and achieve better quality output to comply with good manufacturing practices (GMP), food safety consultation from the Systematic Mechanism for Safer Trade (SYMST) project, financed by the European Union and implemented by the International Trade Centre (ITC) and a loan from the World Bank for rice export resource, the supplier was the first companies in Laos to succeed in exporting rice to the European Union market, sending 50 tonnes of rice to Belgium as the first purchase destination in 2021 and 400 tonnes in 2022. In September, the supplier signed an agreement with Wech Gros Import-Export from France, to sell 1,000 tonnes of glutinous rice each year for an unspecified number of years with the first shipment of rice, 25 tonnes, sent to France in January 2023. Another agreement signed was to export rice to the United States in 2024.

Wholesale – Xuanye (Laos) Co., Ltd.

Supplier Overview
Company Name	Xuanye (Laos) Co., Ltd.
Address	Sisattanak district, Vientiane Capital, Laos, Mobile: 020-5832 0099
Does the supplier have its own production / manufacturing capacity?	No, the supplier is engaging in the utilization of 2+3 Investment Promotion Scheme. Under this scheme, farmers contribute their land and labour, while the company provides funding, technical assistance and a market.
Does the supplier have its own retail capacity?	Yes, the supplier provides commodities directly to the consumer/end user and directly manages retail locations.
Does the supplier have its own transport capacity?	N/A
Does the supplier have its own storage facilities?	N/A
Approximate Turnover in MT	Estimated yearly supply capacity 4,000 mt from 7 rice mills
Payment Methods Accepted	N/A
Other Comments or Key Information	Registered in October 2014, Xuanye (Laos) Co., Ltd., is a Chinese company involved in the export of Lao agricultural products including rice to China. In 2015 the company was approved as the sole exporter of both glutinous and non-glutinous rice, drawing on the output of 7 mills, to China with a quota of 8,000 mt, increasing to 20,000 mt in 2017. However, the company has not yet been able to meet the quota, exporting only 4,000 to 5,000 mt per year, largely due to issues with quality.

*Basic details for the main office should be shown here, additional contact details for local/regional offices and full contact details for the main office to be included in section 4.10 Supplier Contact List.

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
00 - Live animals (other than fish, crustaceans, molluscs, etc.)	i.e. sheep and goats, swine, poultry…	Produced locally
01 - Meat and meat preparations	i.e meat of bovine animals, meat of sheep, dried or smoked meat of swine, sausages…	Produced locally
02 - Dairy products and birds’ eggs	i.e. milk, yogurt, butter, cheese, eggs…	Mostly imported and produced locally (eg: eggs)
03 - Fish (not marine mammals), crustaceans, molluscs…	i.e. fish (chilled or frozen), fish (salted or in brine), fish liver and roes…	Produced locally
04 - Cereals and cereal preparations	i.e. wheat, rice, flour of maize, pasta...	Produced locally
05 - Vegetables and fruit	i.e. vegetables, fruit and nuts, jams/jellies, fruit juices…	Produced locally
06 - Sugars, sugar preparations and honey	i.e. sugars (beet or cane) raw, natural honey, fruit/nuts preserved by sugar …	Imported and produced locally
07 - Coffee, tea, cocoa, spices and manufactures thereof	i.e. coffee, cocoa, chocolate, tea, mate, pepper…	Produced locally and import (eg: chocolate)
09 - Miscellaneous edible products and preparations	i.e. ready-to-eat foods, margarine, sauces, soups and broths, yeasts…	Imported
41 - Animal oils and fats	i.e. lard, fats and oils…	Imported
42/43 - Fixed vegetable fats and oils, crude, refined or fractionated	i.e. soya bean oil, olive oil, maize oil, vegetable oil…	Imported

**For non-FOOD products please see section 3.5.2 Additional Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.

Lao People's Democratic Republic - 3.5.2 Additional Suppliers

Overview

Laos is an agricultural-based country that currently lacks wholesalers or manufacturers to produce essential commodities used in humanitarian operations and programming at the national and district levels. These commodities include tents, water pumps, water tanks, computer/IT equipment, and office furniture. These major products are imported from neighboring nations such as Thailand, China, and Vietnam. Currently, there are only a limited number of manufacturers or wholesalers in Laos that make items such as water pipes and portable water for humanitarian purposes.

For more information on suppliers’ contact details, please see the following link: 4.10 Supplier Contact List.

Please copy the below section for each wholesale-level supplier assessed.

Wholesale – Lao Brewery Company

Lao Brewery Co., Ltd. was established in 1973 through a collaboration between international investors and local entrepreneurs. During that period, the enterprise possessed a yearly manufacturing capability of 21 million liters of potable water.

Supplier Overview
Company Name	Lao Brewery Co,Ltd
Address	Km.12 Thadeua Road, Hatsayfong District, Vientiane CaLAO P.D.R.
Does the supplier have its own production / manufacturing capacity?	Yes
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	Annual revenue was $79 million
Payment Methods Accepted	Cash, check, wire transfer
Other Comments or Key Information	n/a

Other Locations

Region(s)

Service Location(s)

Laos

Vientiane Capital

Champasack Province

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)			Comments
24/27 - Crude materials, inedible, except fuel	No	n/a
51 to 59 - Chemical and related products	No	n/a
61 to 69 - Manufactured goods classified chiefly by material	No	n/a
71 to 79 - Machinery and transport equipment	No	n/a
81 to 89 - Miscellaneous manufactured articles	No	n/a
91/93/96/97 - Commodities not classified elsewhere	Drinking water	manufactured locally

Wholesale – DAO HEUANG GROUP LTD

Dao-Heuang Group (DHG) is presently one of Lao PDR's largest and most progressive corporations. DHG is quickly expanding and is known for creating high-quality multinational brands. Begin food and beverage establishments in 2008.

Supplier Overview
Company Name	DAO HEUANG GROUP LTD
Address	No 437, Unit 26, Hongkair Village, Saysetha District Vientiane Capital 333, Ban Phonkung, Mekong River Crossing Bridge Ave Pakse District, Champasak Province
Does the supplier have its own production / manufacturing capacity?	Yes
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	n/a
Payment Methods Accepted	Cash, check, wire transfer
Other Comments or Key Information	n/a

Other Locations

Region(s)

Service Location(s)

Laos

Vientiane Capital

Champasack Province

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
24/27 - Crude materials, inedible, except fuel	No	n/a
51 to 59 - Chemical and related products	No	n/a
61 to 69 - Manufactured goods classified chiefly by material	No	n/a
71 to 79 - Machinery and transport equipment	No	n/a
81 to 89 - Miscellaneous manufactured articles	No	n/a
91/93/96/97 - Commodities not classified elsewhere	Drinking water	manufactured locally

Wholesale – XAIGNAVONG GROUP Sole Co., LTD

XAIGNAVONG GROUP Sole Co., LTD. is a trade firm that was founded in 2001. The company has progressively grown and broadened its range of business operations from a tiny trading company that exclusively dealt with plastic pipe products to a reputable provider of diverse industrial items for the water and wastewater sectors. Today, the company offers a comprehensive solution for plumbing supplies and equipment for both urban and rural water supply projects.

Supplier Overview
Company Name	XAIGNAVONG GROUP Sole Co., LTD
Address	MAIN OFFICE & SHOWROOM KM10, Kaysone Phomvihane Avenue, Saphangmeuk, Xaythany, Vientiane, Lao PDR
Does the supplier have its own production / manufacturing capacity?	Yes
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	n/a
Payment Methods Accepted	Cash, check, wire transfer
Other Comments or Key Information

Other Locations
Region(s)	Service Location(s)
Laos.	Ventiane Capital
ADD MORE ROWS IF REQUIRED

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
24/27 - Crude materials, inedible, except fuel	No	n/a
51 to 59 - Chemical and related products	No	a/a
61 to 69 - Manufactured goods classified chiefly by material	Pipe fittings	manufactured locally
71 to 79 - Machinery and transport equipment	No	n/a
81 to 89 - Miscellaneous manufactured articles	No	n/a
91/93/96/97 - Commodities not classified elsewhere

Wholesale – Lao Pipe Industrial Technology Sole Co., Ltd

Since 2006, Lao Pipe Industrial Technology Sole Co., Ltd has been producing "Lao Water Pipe" products. The company also prioritizes product development in order to diversify and focus on leadership in pipe systems such as: water pipe system, waste water pipe system, hot water pipe system, clean water pipe system in rural areas, pipe system for electricity, pipe system for telecommunication, water pipe system for agriculture, and water pipe system for public consumption.

Supplier Overview
Company Name	Lao Pipe Industrial Technology Sole Co., Ltd
Address	Nakhae Village, Xaythany District, Vientiane Capital, Lao PDR
Does the supplier have its own production / manufacturing capacity?	Yes.
Does the supplier have its own retail capacity?	Yes
Does the supplier have its own transport capacity?	Yes
Does the supplier have its own storage facilities?	Yes
Approximate turnover in USD - $	n/a
Payment Methods Accepted	Cash, check, wire transfer
Other Comments or Key Information

Other Locations
Region(s)	Service Location(s)
Laos	Vientiane Capital

Primary Goods / Commodities Available
Commodities by Type** (SITC Rev 4 Division Code - Title)		Comments
24/27 - Crude materials, inedible, except fuel	No	n/a
51 to 59 - Chemical and related products	No	n/a
61 to 69 - Manufactured goods classified chiefly by material	Pipe fittings	manufactured locally
71 to 79 - Machinery and transport equipment	No	n/a
81 to 89 - Miscellaneous manufactured articles	No	n/a
91/93/96/97 - Commodities not classified elsewhere

**For FOOD products please see section 3.5.1 Food Suppliers, and for FUEL/PETROLEUM products please see section 3.1 Fuel.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.