A Plantation Feasibility Study in Lao People's Democratic Republic Using SWOT Analysis

As timber growing in South Korea is becoming less profitable, more attention has been given to overseas forest plantations in recent years. This study was investigated to see whether Lao PDR is suitable for overseas plantation investment from Korean investor's perspective. SWOT analysis was used to reveal the conditions for forest plantation investment in Laos. We conclude that Laos should deserve to be included among the countries with merits in forest plantation investment. First, Laos has more than 10million hectares of degraded forest lands waiting for reforestation. Second, the condition of infrastructure such as roads and telecommunications is getting better. Third, the cost of hiring labor is relatively low while the labor forces have been given opportunities for forest work training from previous forestry projects, It is recommended for potential investors to check the following when seeking suitable sites for forest plantations: 1) land productivity, 2) incentive systems available from central and local governments, 3) threat of submergence or UXO, 4) distance from wood processing industry and export ports. It should also be noted that Laos has joined the Kyoto Protocol and UNFCCC and is one of the potential candidates for investment in clean development mechanism projects under the Kyoto Protocol and UNFCCC for securing greenhouse gas emission permits