EU, Germany support 13 Lao teams to scale up forest value chains

Thirteen innovative teams have secured technical and financial backing to scale up sustainable forest-based business solutions after emerging victorious in a competitive pitching event in Vientiane on Tuesday.
The Forest-Based Value Chains Innovation Challenge 2025-2026 was organised by GIZ through the Protection and Sustainable Use of Forest Ecosystems and Biodiversity (ProFEB) project.
The initiative is co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ), and aims to strengthen inclusive economic growth while safeguarding the environment.
The winning teams were selected from 20 finalists, shortlisted from more than 50 applications submitted from Huaphan, Khammuan, Luang Prabang, Xayabouly, Oudomxay and Vientiane provinces.

The challenge seeks to unlock the economic potential of non-timber forest products, sustainable agroforestry models, eco-processing initiatives and community-based enterprises.
Deputy Director General of the Department of Forestry, Dr Khamfeua Sirivong, underscored the importance of ensuring forests generate sustainable economic value while remaining protected.
“Environmental protection and economic development are not competing objectives; they reinforce one another when guided by responsible management and innovation,” he said, stressing that forests must continue to provide livelihoods without compromising biodiversity and ecosystem integrity.
Director General of the Department of Small and Medium Enterprise Promotion under the Ministry of Industry and Commerce, Dr Malaykham Philaphone, highlighted the critical role of small and medium-sized enterprises in transforming rural economies.
She noted that innovation enables local producers to move beyond subsistence production and integrate into higher-value supply chains, improving incomes and resilience.
The Ambassador of the Federal Republic of Germany to the Lao PDR, Mr Hans-Ulrich Südbeck, described the initiative as a flagship example of the “Team Europe” approach, combining Germany’s and the EU’s expertise to advance Laos’ green growth ambitions.
“Germany supports the ProFEB project because we are convinced that forest protection and economic prosperity are not mutually exclusive; they are two sides of the same coin,” Ambassador Südbeck said.

He added that the participating entrepreneurs demonstrate how sustainable business models can enhance competitiveness while protecting natural capital.
Following a rigorous screening process conducted by the Department of Micro, Small and Medium Enterprise Promotion, GIZ, and technical consultants, the top 20 teams advanced to the final round in Vientiane.
Each team delivered a five-minute pitch before a nine-member jury representing government agencies, the private sector, academia and development partners. Proposals were assessed based on innovation, relevance, sustainability and scalability.
The 13 selected teams will now receive tailored technical mentoring, business development support and seed funding to refine their models, strengthen product quality, expand market access and improve branding.
Organisers expect the supported enterprises to generate new rural employment opportunities, particularly for women and young people, while promoting responsible forest management practices in line with national forestry regulations.
The initiative reflects close cooperation between GIZ, the European Union in Laos, the Department of Forestry under the Ministry of Agriculture and Environment, and the Department of Small and Medium Enterprise Promotion.
Participating organisations also included the Ministry of Agriculture and Forestry, the Ministry of Technology and Communication, the Lao ICT and Digital Association (LIDA), and the Lao National Chamber of Commerce and Industry (LNCCI).
Looking ahead, organisers said the Innovation Challenge is expected to serve as a replicable model for strengthening forest-based value chains nationwide.
By linking conservation objectives with entrepreneurship and market development, the programme contributes to Laos’ broader socio-economic development priorities and its commitment to sustainable natural resource management.
The conclusion of the challenge marks a significant step in redefining how Laos values its natural assets.
By fostering innovation at the community level and strengthening partnerships between government, the private sector and development partners, the initiative reinforces the message that a thriving forest remains the foundation of a thriving and resilient nation.
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By Times Reporters
(Latest Update March 4, 2026)