Along the Mekong River Basin, fish are more than a commodity as they provide food on the table, income for families, and a safety net for communities that have depended on rivers and ponds for generations. But today, that relationship is under strain.

As wild fish stocks decline, aquaculture has become essential for food security and livelihoods in Lao PDR. Yet for many small-scale hatcheries, survival is precarious. Aging infrastructure, limited technical guidance, and the inability to detect sudden changes in water quality mean that a single night of low oxygen or rising turbidity can wipe out an entire production cycle. In some cases, only 5 percent of eggs survive to become fingerlings, a devastating loss for small producers.

This is the gap Aquaculture of Lao set out to address.

Founded in 2023, the local startup focuses on one simple idea: if farmers can see problems early, they can prevent losses before they happen. Instead of expensive or complex systems, the team developed practical, affordable water-quality monitoring tools tailored to small hatcheries.

Their approach was selected as one of 60 winners of the ASEAN Blue Innovation Challenge (ABIC), supported by UNDP through the ASEAN Blue Economic Initiative (ABEI) with funding from the Government of Japan. The support provided a crucial opportunity to test whether smart, locally adapted technology could change outcomes on the ground.

Working with the Living Aquatic Resources Research Center (LARReC), Aquaculture of Lao piloted simple sensor-based monitoring systems in hatcheries along the Mekong. The sensors track temperature, dissolved oxygen, pH, and turbidity, factors that directly determine whether fish survive or die. Data is displayed through a basic digital interface, allowing hatchery operators to act quickly when conditions begin to shift.

“In the past, farmers relied mostly on experience,” Aloun Phonvisay, founder of Aquaculture of Lao. “But conditions are changing.  Having data helps them make decisions with more confidence.”

Alongside the technology, 24 hatchery owners and farmers received hands-on training on fingerling production and data-driven hatchery management. This helped embed new practices into daily routines, strengthening skills, planning, and risk management.

Growing Beyond the Pilot Phase

Early results from the pilot are encouraging. Where survival rates were once as low as 5% due to poor water control and limited technical guidance, pilot hatcheries began recording 40–60% survival. Operations became more predictable, losses less frequent, and planning more reliable. Today, Aquaculture of Lao supports the production of 2–3 million fingerlings each year, supplying local farmers with a stable and affordable source of stock.

This shift has given real economic impact. Improved survival rates and reduced losses are estimated to generate a positive net value of around USD 267,000 within four years of operation, income that stays within local communities. As the enterprise scales, production is expected to reach 15 million fingerlings, reducing reliance on costly imports and stabilizing supply across the aquaculture sector.

Building Links to Finance and Local Government Support

ABEI also helped open doors beyond technology. As the pilot initiative showed tangible results, it strengthened the capacity of Aquaculture of Lao and the hatchery operators involved.

Through the challenge, partnerships were established with the SME Service Center, the Government Policy Bank, and district agriculture offices, connecting small hatcheries to support systems that had previously been difficult to access. These partnerships help operators improve record-keeping, prepare investment proposals, and understand pathways to government-supported financing, which are the practical steps needed to move from informal production toward more resilient small enterprises.

This progress was reflected during a forum hosted by the Lao Agricultural Business Association, where the fish-fingerling initiative was highlighted as a strong candidate for emerging SME support schemes, including access to low-interest loans of up to USD 150,000 at 3%. Such financing enables farmers to upgrade ponds, invest in equipment, and expand operations in a more planned and responsible way.

In this process, Aquaculture of Lao plays a bridging role, combining technology, skills, and access to finance so hatchery operators can manage their businesses more sustainably and improve long-term profitability.

A Future Where Hatcheries Support Healthy Rivers

Well-managed hatcheries do more than support livelihoods. By increasing reliable fingerling production, they reduce pressure on declining wild fish stocks, helping protect river ecosystems while meeting growing food demand. What began as a pilot under ABEI is now contributing practical lessons on how locally adapted technology, skills development, and partnerships can strengthen aquaculture systems in Lao PDR.

Through ABEI, UNDP supports locally led innovation that helps small enterprises test, learn, and grow beyond initial support—contributing to a more resilient blue economy that supports food security, livelihoods, and healthier river systems along the Mekong.

Written by: Anastasia Weningtias

Edited by: Jatu Arum Sari, Nabilla Rahmani