Rice is the staple food for the Laos people and plays a vital role in Laos's agriculture. The total amount of rice production as of 2014 is about 4 million tons, exceeding the self-sufficiency level and showing a production surplus of 1.7 million tons. However, the lack of securing high quality seeds and the outdated cultivation and post harvest technology has led to low quality rice and loss in the post harvesting process.

In particular, the farming in Laos that depends on labor of the people and it is not done at the right time, therefore it is difficult to expect high quality rice. The agricultural households sell the rice in its' raw state, the farms missing out on their opportunities to raise household income through milling.

Therefore through this rice value improvement pilot project, by supplying high quality rice seeds, one can expect stable production of high quality rice, and by adopting advanced farming technology, and appropriate farming machines, one can expect the minimization of loss in rice and thereby increase the potential added-value that can lead to the increase in agricultural household income.

Meanwhile, the Korean government and the Laos government have agreed to offer the rice value chain improvement pilot project as a credit assistance, and to proceed it with the Savannakhet Integrated Rural Development Project. Therefore the Laos rice value chain improvement pilot project is expected to become the first ODA project with its maximized synergy effect, by carrying out the grant and loan assistance in connection with each other.