Establishment of herbal products facility under GMP standards in Laos The partners will establish a facility in Laos to produce herbal food supplements and cosmetics.Currently, Laos sells a lot of herbs to Vietnam and China and imports a lot of finished herbal products. The partners are already active in the herbal sector. The applicant Greater Pharma Company Ltd from Thailand is producing herbal medicines in Thailand and the local partner Viengthong Pharma Company Ltd distributes (herbal) medicines and medical equipment in Laos including products of the applicant. Partners know each other well and have all the knowledge and experience to implement the project.The partners will establish a joint venture that will be located in Vientiane.The project will work with at least fifty outgrowers to secure the year-round supply of the required herbs. This is new for the country where, currently, a lot of herbs are collected in the forests.The project will add value to the herbs in Laos and will introduce the GMP standard in the herbal industry. It will be the first Laos producer of herbal food supplements and cosmetics.Corporate Social Responsibility (CSR)The partners will do a lot in this respect. A large number of CSR aspects will be an integral part of the project and includes:•	no child labour,•	middle/higher positions for women,•	salaries at least 20% above minimum wage and in the beginning much higher and in line with living wages,•	GMP will require medical check-up,•	no discrimination,•	health and safe working conditions,•	minimised impact on the environment by recycling residues of extraction process and waste water treatment.Zero tolerance towards bribery and corruption.Impact•	Employment and working conditions-	The employees will get a free daily meal.-	Free annual medical check-up.-	Pick up service for employees who live quit far from the plant.-	Freedom to associate.-	Permanent labour contracts.-	The wages are in line with living wage. The government has increased the minimum wage begin 2012 from USD 45 to USD 80 per month. The partners will guarantee a bonus of 20% above this level. However, the joint venture will pay the employees at least USD 250 per month what is much higher.-	Good and safe working conditions are secured because the joint venture will work under GMP.•	Innovation / Transfer of knowledgeThe project will introduce a high level production of herbal products GMP certificated.The project will be the first that will produce herbal food supplements and cosmetics in Laos.The production method of herbal extraction is also new for Laos.The chain approach is new in the herbal sector. The herbs will be grown at herbal farms by contracted out growers on demand of the joint venture. Now herbs are collected in the forest.•	Chain effectsImpact on local suppliersThe number of suppliers of other products than herbs is limited. The involvement of out growers is a strong point of the project. The 50 outgrowers will receive training and will get long-term contracts. This is new for the country because now most of the herbs are being collected in the forests and not grown by "herbs farmers".Impact on local customers or consumersThe local drugstores will get the opportunity to sell quality products from Laos and what will be cheaper than the imported products. The consumers will welcome the new supplier on the market.•	Impact on the sectorThe project will introduce GMP in the herbal sector what will be an example for the sector. A demonstration day will be organised to show the way of production etc.•	EnvironmentThe project will recycle residues and will build a waste water treatment plant. The government demands an Environmental Impact Assessment (EIA).•	Position of womenFifteen out of 40 employees will be women and nine out of fourteen employees on medium- and high-level will be women.Also, a large part of the herb outgrowers will be women. Herbs are more a women business. Establishment of herbal products facility under GMP standards in Laos.