Summary of the Evaluation Results
1. Outline of the ProjectCountry：Lao Republic of Democratic PDR

Project title：The One District One Product Pilot Project in
Savannakhet and Saravanh Provinces

Issue/Sector：Development of Private Sector

Cooperation Scheme：Technical Cooperation ProjectOfﬁce in Charge：JICA Laos

Total Cost：290 million JPY

Period of Cooperation：
Dec 2008 - Dec 2011（R/D：10 Dec 2008）

Partner country’s Implementation Organization：Ministryof Industry and Commerce
Supporting Organization in Japan：None
Related Cooperation：Macroeconomic Policy Support
for Socio-economic Development in the Lao PDR Phase
1 and 2(2000-2002, 2003-2005), The Project of Prototype
of Attractive Tourism Center in the East West Economic
Corridor for Community Empowerment and Poverty
Alleviation(2008-2011）

1-1 Background of the Project
Recently, Lao People's Democratic Republic (hereinafter referred to as“ Laos PDR”) has been on
the integrated process to the global market economy, with advancing towards the afﬁliation to the World
Trade Organization (WTO). Macroeconomic Policy Support for Socio-Economic Development of Japan
International Cooperation Agency (JICA) in the Lao PDR (MAPS) implemented from 2003 to 2005 by
National Economic Research Institute (NERI) addressed that ODOP movement would be an essential
approach to revitalize local businesses and promote potential products for export. MAPS also mentions thatODOP is one of measures to improve livelihoods in local areas. Under these circumstances, the Governmentof Lao PDR requested the Government of Japan having know-how and experiences of One Village One
Product to assist with Technical Cooperation Project, in order to verify what kind of ODOP suitable to social
economy in Lao PDR. As result, the project for One District One Product Pilot Project in Savannakhet
and Saravanh Provinces has started since December 2008 with the duration of three years by Ministry ofIndustry and Commerce in cooperation with JICA.
1-2 Project Overview(1) Overall Goal
ODOP movement is disseminated in Savannakhet and Saravanh Provinces(2) Project Purpose
Project activities are proven to be effective in promoting ODOP in Savannakhet and Saravanh Provinces(3) Outputs• Output 1: An operational system is worked out for implementing ODOP Pilot Projects• Output 2: The capacity of staff and concerned personnel is developed• Output 3: Marketable products are developedxiii• Output 4: Based on the experience of pilot projects, lessens are learnt for promoting ODOP in
Savannakhet and Saravanh Provinces(4) Inputs (as of 30 Sep 2011)
Japanese side：• Long-term experts: 8 ( 66.07MM)• Trainees received in Japan and Thailand: 10• Provision of Equipment: JPY7,661,000• Local cost：JPY 62,127,000
Laos side:• Counterpart Personnel：15 (5 from ERIT, 7 from DIC Savannakhet and 3 from DIC Saravanh)• Provision of Project ofﬁce in ERIT, DIC in Savannakhet and Saravanh provinces, including light, fueland water expenses• Personnel cost for Counterpart
2. Evaluation teamMembers of
Leader：Mr. Takafumi UEDA (Senior Advisor, JICA Headquarter)
Evaluation Team Evaluation and Analysis：Chiaki YAMADA(Consultant, Pegasus Engineering, Co Ltd)
Cooperation Planning：Mr. Hiroaki KUBOTA (Project Formulation Advisor, JICA Laos)
Cooperation Planning：Mr. Kayasith SADETTAN (Assistant Program Ofﬁce, JICA Laos)
Period of
Evaluation

19th OCT 2011 - 3rd NOV 2011

Type of evaluation

Final Evaluation

3. Evaluation Results
3-1 Project Performance(1) Achievement of Outputs
Output 1：An operational system is worked out for implementing ODOP Pilot Projects
What needs to be done and which organizations and/or individuals need to be involved to promote ODOP
have been clariﬁed. If more time is available, more effective operational system is likely to be found.
Indicator 1-1：At least one product is developed / expanded as ODOP product by the initiative of each DIC
At the time of the Terminal Evaluation, DIC in Savannakhet has supported development of 3 ODOP
products by their own initiative with some support from the Project. Possibility of support to develop a local
weaving product by DIC Saravanh would increase if activities could be implemented during the dry season
when they can visit potential ODOP group(s).
Indicator 1-2：ODOP Field Manual, including selection criteria for ODOP group and ODOP products andbusiness plan formulation, is shared among concerned personnel
The initial draft of ODOP Field Manual has been developed. If the Project could spend more time towork with the ODOP Field Manual, its quality would be higher.
Indicator 1-3：Baseline study and introduction workshop / seminar / meeting are conducted for all the
candidate groups
The Project conducted 65 baseline surveys and introduction workshops/seminars/meeting for all thexivcandidate groups.
Output 2: The capacity of staff and concerned personnel is developed
The capacity of staff at the central and provincial levels has been considerably developed.
Indicator 2-1: More than 2 staff and concerned personnel at each province can support producer groups inproduct development / marketing / public relations / business plan
More than 2 staff and concerned personnel at each province can support product development and public
relations (ODOP promotion in districts). Marketing support can be provided but could be further improved.
Support in business plan is a challenge.
ERIT recognized the importance of human resource development and sent their staff members to Japanand Thailand for training. ERIT staff members assigned for ODOP also gained experiences by participatingin various project activities including internal evaluation, ﬁeld visits and seminars.
Output 3：Marketable products are developed
Nineteen (19) marketable products based on the local resources have been developed. Since the Midterm Review, various activities to expand marketing channels have been conducted.
Indicator 3-1: Each ODOP group produces more than one improved quality product and / or new product
Nineteen (19) out of 22 ODOP groups have one or more improved quality or new products. As for theremaining 3, pottery, hoi hom and local weaving groups will need more time to develop products during thedry season.
Indicator 3-2: More than 80% of ODOP groups increase the sales quantity compared to the baseline data (forexample, baseline should be the average of monthly sales quantity of the new / improved products of initial
three months)
Nineteen (19) out of 22 ODOP groups have increased the sales quantity, which means approximately
86% of ODOP groups increased the sales quantity.
Indicator 3-3: More than 80% of ODOP groups are linked with alternative distribution channels
Six (6) out of 7 ODOP groups with improved quality products have found alternative distribution
channel(s), which means more than 80%.
Output 4：Based on the experience of pilot projects, lessens are learnt for promoting ODOP in Savannakhet
and Saravanh Provinces
Considerable lessons will have been learnt if more time is available.
Indicator 4-1: ODOP Strategic Paper is developed and acknowledged
Indicator 4-2: ODOP Dissemination Plan is developed each for Savannakhet and Saravanh Provinces
ODOP Strategic Paper and Dissemination plan could be developed within the current timeframe.
However, if more time is available, their quality can be higher due to experiences and insights gainedxv

through additional seminars and events.
Indicator 4-3: ODOP Strategic Paper and Dissemination plan are shared with related personnel in the two
provinces
It will be desirable if strategic paper and plan could be shared for wider audience in the central andprovincial levels.
(2) Achievement of Project Purpose
Project Purpose：Project activities are proven to be effective in promoting ODOP in Savannakhet andSaravanh Provinces
Project activities have been implemented and are likely to be proven effective considerably, on condition
that the ODOP Strategic Paper, Dissemination Plan, Field Manual of high quality be fully developed andshared by the stakeholders.
Indicator 1: More than ten products are successfully promoted as ODOP products according to the plan
(PPIP)The internal evaluation was held in August 2011 by the Project. Based on its result, there are 12 ODOP
products achieved the target promotion level set by the Project in the Pilot Project Implementation Plan(PPIP).
Indicator 2: More than 90% of ODOP producers are satisfied with the results of the Project support andparticipation
It is founded that nearly 80% ODOP producers are satisfied with the Project activities through theinternal evaluation.
(3) Achievement of Overall Goal
Overall Goal：ODOP movement is disseminated in Savannakhet and Saravanh Provinces
ODOP movement is likely to be disseminated and implemented further in the two provinces.
Indicator 1: More than ten ODOP products are additionally developed by 2015
Indicator 2: More than ten ODOP groups (or individuals) are additionally activated or newly formulated by
2015
Both indicators will be achieved if budget is allocated at the provincial level as project implementation
framework is likely to be clariﬁed and staff be allocated. Collaboration with OICs as well as other provincial
departments and the private sector will be needed.
3-2 Summary of Evaluation Results(1) Relevance: HighThe relevance was assessed based on the target groups’needs, the Lao government’s policy, theJapanese government’s policy, and the project target area.
Relevance to the needs of target groups
The Government of Lao PDR formulated National Growth and Poverty Eradication Strategy (NGPES) as

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Poverty Reduction Strategy Paper (PRSP) in June 2004. NGPES states that there are 72 districts identiﬁed
as either poorest or poor, 7 districts of which belong to Savannakhet Province and 3 belong to Saravanh
Province. According to the DICs in the two provinces, small-scale producers have limited opportunities toimprove their production techniques. Also there is difﬁculty in accessing market information, which may benecessary for generating incomes. Therefore, the aim of the Project to promote income generation activities
for rural producers in the two provinces through the development and the improvement of local products,
meets the needs of the target groups.
Relevance to the Laotian Policy
The Government of Lao PDR focuses on poverty reduction through rural development, income
generation of small-scale industries, promotion of small and medium enterprises, and support for commodity
productions in the 6th and 7th National Socio-Economic Development Plans (2006-2015). The plansstate that creating jobs and stabilizing society by building up the private sector with human resources
development are the primary challenges. This project corresponds to such policies by promoting businessactivities by small enterprises and producer groups in the rural areas by taking advantage of available local
resources.
Relevance to the Japanese Policy
This project is highly relevant to the Country Assistance Program of the Government of Japan for Lao
PDR as follows:• Corresponds to one of three goals set in the Assistance Program which is“Support foundation building
for the economic growth with a view to promoting economic growth constituting the driving force forindependent, sustained growth.”• Corresponds to one of 6 priority areas in the Assistance Program which is“Institutional building andhuman resources development for enhancing the private sector.”
The target areas of the project
The target provinces of the project, Savannakhet and Saravanh, are included in the 5 Southern provinces
which JICA recognizes as priority areas of the country. These two provinces have different characteristics
as below, and the selection of two provinces is appropriate in comparing the results of these provinces, anddeveloping a nationwide plan for ODOP program in the near future.
Name of Province
Savannakhet Province
Saravanh ProvinceCharacteristic
Located along the East-West Corridor, having a
potential of being a hub of trade and service
Rural and having less economic activities(2) Effectiveness: HighThe Mid-term Review pointed out that more emphasis would need to be placed on (i) marketing aspectsof pilot project activities (Output 3), (ii) human resource development of C/P staff and personnel (Output 2)and (iii) development of the operational system (Output 1) during the rest of the Project period. Since then,these points were duly addressed. As a consequence, the Project Purpose is likely to be achieved as the resultof the output1-4.

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(3) Efficiency: High
Since the Mid-Term Review, DIC Savannakhet assigned 5 staff members for ODOP and plans to assign
additional two at the end of the Project. DIC Saravanh, whose 4 personnel had been all volunteers at the timeof the Mid-Term Evaluation, assigned one ofﬁcer since then and plans to assign one more at the end of the
Project. 50 additional resource persons from Thailand, Japan and other countries provided training to ODOP
groups either voluntarily or with minimum level of honorarium.
The Project conducted some training in Thailand where there is advantage in language similarity andpractice of OTOP. Some group members established a personal network with resource persons of suchtraining.
(4) Impact: Relatively HighImpact of the Project is likely to be high if necessary budget is obtained at the provincial level and thecommitment at the senior level is continued or raised. DIC in the two provinces have already requested
budget allocation from respective province and plan to assign necessary staff members and personnel.
Additional structure such as an“ODOP Guiding Committee”in Savannakhet Province is being established.
Thus, the likelihood of attaining the Overall Goal has become much higher compared to the time of the MidTerm Review.
As positive impact, the following points have been found:• 8 out of 11 ODOP groups interviewed during the Terminal Evaluation answered that their incomes havebeen increased considerably through the sales of ODOP products.
• Some ODOP group interviewees mentioned that their conﬁdence had been raised as they were able tosell their products with higher quality.
• Some groups came to realize the advantages of working together as a group as they were able to dowhat had not been possible as individuals. Some groups established group funds to generate necessary
ﬁnance for their businesses.
• Some groups overcame difﬁculties in group dynamics, without support from outside.
(5) Sustainability: Moderate
At the policy level, the ODOP Strategy Paper to be developed by the Project needs to be recognized asa basis for developing their own policy document. ERIT has developed the ODOP logo which is alreadyregistered at the Ministry of Information, Culture and Tourism and has been submitted to the National
Science and Technology Agency to be registered as an intellectual property. ERIT is currently developing
guideline for the use of the logo for the ODOP products aimed at the domestic market. Budget has beenrequested at the provincial level in the two provinces. Budget allocation at the national level is yet to beenvisaged.
ODOP structure in the two provinces have been established and planned to be further improved.
National level structure may need to be further elaborated. For effective and sustainable implementation of
ODOP, collaboration with various organizations including other ministries (e.g. Ministry of Agriculture andForestry) and the private sector (both local as well as foreign enterprises) need to be strengthened.

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3-3 Factors that promoted realization of effects(1) Factors concerning to planning
After the project starting, some kinds of surveys were conducted. The adequacy of the planed approach
was reconsidered through the results of the surveys, and PDM was dramatically changed. Moreover, PDM
was modiﬁed one more time through the Mid-Term Review. One could argue that the cooperation effect of
this project was drawn by ﬂexible responses in line with the real situation.
(2) Factors concerning to the Implementation Process
Nothing has been found.
3-4 Factors that impeded realization of effects(1) Factors concerning to planning
The final stage of the project was during the rainy season and the Project activities have not been
implemented as planned.
(2) Factors concerning to the implementation process
In the communication between JICA experts and DIC, although there has not been a big trouble, it’sfound that the expert’s indications were sometimes not enough in their absence through the interviews.
3-5 Conclusion
In the Mid-Term Review, some problems were pointed out like the weakness of the initiative of Lao side,
activities biased to product development and so on. However, in the latter half of the project period, pilot
projects initiated by DIC were formulated, and the Project Team has geared up for marketing and sales. As
a result of their efforts, the improvements of the points in the Mid-Term Review were conﬁrmed throughthis evaluation. Especially, regarding the initiative of Lao side, changes of their attitudes were seen at thecentral, provincial and grass root level respectively. At the central level, the ODOP logo was developed by
ERIT as their own activity. Budget has been requested and the ODOP structure has been established at theprovincial level in two provinces. Also, the attitudes of the DIC staff have become more active. In the ﬁeld,
some group members have developed business mind through the project activities like product development,
marketing and sales. In addition to that, we could see the development of a group as the establishment ofa group fund. However, some ODOP groups are under the process of product development. They haven’t reached the process of marketing and sales because of the delay of activities due to rainy season. Also,
regarding the Field Manual and ODOP Strategy Paper planned to complete until the end of the project, thediscussion between Japanese experts and CPs is still not enough. In order to en sure the signs conﬁrmed
in this evaluation that leads to further development of the ODOP movement, the project extension of 2-3
months is necessary. It is expected to consider the extension of the project period. The expected outputs incase of the Project extends are shown in the table below.

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Current situation of the project

Expected outputs in case of the Project extends

The activities of the ODOP groups under the • All groups will finish their product development andprocess of product development

will be able to start marketing and sales.

Three ODOP groups including the pilot project • More groups will be satisﬁed the project assistance byinitiated by Saravanh DIC are on the way todevelop their products.

getting the support regarding the marketing and sales.
• The initiative of Saravanh DIC is fostered by the further
progress of their pilot project. Also it leads to thecapacity building of Saravanh DIC staff.
• Achievements of 3 groups will be reflected to thepapers, which are Field Manual, Dissemination Plans
and ODOP Strategy Paper, written by the Project.

Papers written by the Project• Achievements of 3 groups under the process of product

The following papers are being written by thedevelopment will be reflected to the papers, and the

Project.

quality of the papers will be enhanced because the• ODOP Field Manual

enough time for discussion with Lao CPs will be• ODOP Dissemination Plans in Savannnakhet

ensured.

and Saravanh Provinces• ODOP Strategy Paper• Regarding the lesson-learnt extracted from theexperience of the project activities, the understandingof Lao CPs will be deepen through the discussion about
the papers

3-6 Recommendation and Suggestions(1) Further support for the ODOP groups
The ODOP groups have participated in a lot of trainings, seminars and workshops organized by the
Project. Also, they have experienced a set of processes from product development to marketing and sales as
project activities. These experiences have built their conﬁdence to their products and themselves. It’s ledthem to have business mind. For the purpose of that they will continue to their activities and gain the stable
income hereafter, it is necessary to improve their management skills for ﬁnancing, producing, marketing andsales.
(2) The necessity of collaborations with related government ministries/agencies, Internationalorganizations, NGOs and private sector
The collaborations among organizations concerned including private sector are expected to be the one ofmost important factors to get further boost to promote ODOP movement, in addition to the strengthening of
Lao government’s initiative.
Lao PDR is an agricultural country and has a big potential to develop agricultural products. Therefore,
especially it is very important to cooperation with Ministry of Agriculture and Forestry. They have monthly
joint meeting at the central level. However, in addition to that, it is imperative to accumulate actual
collaboration experiences in the ﬁelds of provincial and district levels. It would contribute to achieve Overallxx

Goal, and lead to establish the framework for cooperation between MOIC and MAF.
As for the collaboration with private sector, the efforts for the following points would be important;formulating a network among trading companies, middle men and so on in order to strengthen marketing
which has been cited repeatedly as the key task, and strengthening the relationship with ODOP supporting
industries like enterprises providing labels, containers and etc. which is vital for product development.
Moreover, It is difficult for local people to reverse their way of thinking in methods for productdevelopment, and marketing. Therefore, it is preferred to get inputs from outsiders like internationalorganizations and NGOs in moderation. It would bring out further sustainable development of ODOP
activities.
(3) Securement of the budget for further promotion of ODOPThe budget has been requested in both Savannnakhet and Saravanh provinces in order to continue tosupport the ODOP groups. However, the proposal for the budget is not necessarily approved. The way in thecase of the budget is not secured should be considered among the people concerned.
3-7 Lessons learned
Selection of the approach suitable for prerequisites in each country
ODOP in Lao PDR is a distinctive project. JICA has been conducted a lot of assistances related to“One
Village One Product (OVOP)”in many countries. As represented by Malawi, the major approach is the one
to focus on the establishment of a system to promote OVOP movement and capacity building to function
it. At ﬁrst, this project was also planned emphasizing on the establishment of the system. However, it was
found that this approach had risk to become a mere façade in the real situation in Lao PDR as the result of
looking into local people’s mind for business, education level in rural area, and capacity of local ofﬁcials.
Then, as the very beginning, it was necessary to start with showing the fact that rural people are able to
do ODOP activities including product development, marketing and sales, and also prove its effectiveness.
As for the approach starting with the establishment of the system, it would be necessary to consider theprerequisites to function it. Then, if the requirements are not met, only way we can take might be theapproach close to village development. And the feasibility and effectiveness of the approach should betransmitted at the ﬁeld and political levels in order to deepen understanding of the people concerned. After
that, it would be better to develop the necessary parts of the system sequentially based on the accumulationof the experiences in the ﬁelds. It could be said that it more suitable to take the stepwise way composed ofsome kinds of approaches as above in the view of the real situation in Lao PDR.
The approach taken in ODOP project is characteristic at the point which it was started with productdevelopment and proved the effectiveness of the ODOP activities. It could be a production of approach forsupport of OVOP. As a result, it succeeded to bring out positive action from Lao CPs to promote ODOP
movement at the central and ﬁeld levels. We could say that the change in attitudes of Lao people concernedis great impact of this project. JICA has implemented a lot of projects regarding OVOP in many countries.
Based on the experiences in past including the project in Lao PDR, each kind of approach, the required preconditions and the sequence to take approaches should be marshaled for the future cooperation.

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