Director General of the Forestry Department at the Ministry of Agriculture and Environment, Assoc. Prof. Dr Somvang Phimmavong (left), and KfW Director for Laos, Vietnam and Cambodia, Mr Daniel Plankermann.

Germany extends support for sustainable forest management in Laos

The German government, through the KfW Development Bank, has committed EUR20 million to support the second phase of the Village Forest Management Project in Laos, furthering Laos’ goal of sustainable forest management, conservation, and rural economic development.
This new financing strengthens Germany’s longstanding partnership with the Lao government to advance sustainable forest management, protect natural ecosystems, and enhance rural livelihoods.
The Ministry of Finance and the Ministry of Agriculture and Environment, in cooperation with KfW Development Bank, held a formal ceremony to hand over the signed agreements marking the launch of Phase II of the Village Forest Management Project.
The handover ceremony took place in Vientiane last week, when the agreement was provided by the KfW Director for Laos, Vietnam and Cambodia, Mr Daniel Plankermann, and received by the Director General of the Forestry Department, Ministry of Agriculture and Environment, Assoc. Prof. Dr Somvang Phimmavong.
Phase II of the project is set to begin following the close of Phase I in May 2026 and will continue until 2033.
The project will expand its coverage from current areas to new target provinces, including Phongsaly and Vientiane, and will continue to be implemented by the Forestry Department of the Ministry of Agriculture and Environment.
The project aims to support village and community forestry as part of broader adaptation and mitigation efforts in Laos.
The overall objective of the project is to improve the condition of forest ecosystems and the socio-economic situation of rural households, including ethnic groups, forestry-dependent people and local communities.
This will be achieved through the sustainable management of forests, utilising climate-resilient forestry models managed by villagers, with a particular emphasis on empowering women in Laos.
“This partnership reflects our shared vision for sustainable development,” Deputy Minister of Agriculture and Environment Dr Kikeo Singnavong said,
“With the continued support of the German government, we are confident that Phase II of the Village Forest Management Project will contribute to our national targets on forest cover and rural prosperity.”
First Secretary at the German Embassy in Vientiane, Werner Grohé, said “In line with Germany’s commitment to supporting the forest sector in Laos, the second phase of the Village Forest Management Project aims to benefit people in local communities, particularly villagers.” 
“The seven project models ensure forest conservation, livelihood security, and empower farmers to invest in their own land, enhancing agricultural productivity and stimulating local socio-economic development.”
“Germany is pleased with the results achieved so far through this cooperation and looks forward to continuing our contribution to the development of Laos.”

By Siladda Suliyong
(Latest Update August 25, 2025)