Vietnam Invests USD 50 Million in Major Coffee Project in Southern Laos

The USD 50 million project, agreed on 10 May, will cover 5,000 hectares in one of Laos’ main coffee-growing regions, known for its fertile volcanic soil and favorable climate for coffee production. Vietnamese agribusiness firm Hoang Anh Gia Lai signed the agreement with Champasak provincial authorities during an investment meeting held in Pakse.

The project will focus on developing high-quality coffee plantations alongside processing facilities aimed at producing export-grade coffee beans for international markets. The company said the investment will introduce modern agricultural practices and expand value-added processing in Laos’ coffee sector, which remains one of the country’s leading agricultural export industries.

Champasak authorities believe the project could help create jobs, improve agricultural productivity, and support local economic growth, particularly in rural communities linked to coffee farming and processing. Speaking during Coffee Festival 2026 in Vientiane, officials from the Ministry of Industry and Commerce said coffee generates more than USD 200 million annually for Laos and supports around 25,000 households nationwide.

While the Bolaven Plateau remains the country’s primary coffee-producing area, cultivation has also expanded into northern provinces including Phongsaly, Houaphanh, and Xieng Khouang. Hoang Anh Gia Lai also plans to expand plantation operations to more than 20,000 hectares across Laos, Cambodia, and Vietnam as part of its long-term regional agricultural strategy.

Hydrogen-Roasted Coffee and Laos’ Export Ambitions

The investment comes as Laos continues expanding coffee production and improving quality standards to strengthen its position in international markets. At the same time, Laos is exploring hydrogen-roasted coffee technology as part of broader efforts to modernize the sector and reduce emissions.

A hydrogen-powered coffee roasting plant is currently under development in Champasak province through cooperation between Lao and Japanese partners. Unlike traditional roasting methods, hydrogen roasting produces only water as a by-product, while developers say the technology could improve flavor stability and shelf life. This helps Lao coffee meet growing sustainability standards in international markets such as Japan, Europe, and North America.