This was the SPAF's first project to concentrate its assistance on Laos. As over 90 percent of population in Laos are currently residing in rural areas, rural development is key for Laos to open its doors to a more market oriented economy. The initiative of Dr. Krasae Chanawongse, who has devoted himself to primary health care as well as rural development in Thailand for over 30 years, materialized this project in 1993 in collaboration with the Ministry of Health in Laos.

Two training programs were implemented per year by the Village Foundation together with Mahidol University in Bangkok and Phon Commercial and Technical College in Khon Kaen. For each training program 15 Laotian officials were invited to Thailand for two weeks. The training were divided into two parts: lectures and institutional visits in Bangkok and nearby cities for a week; and field studies in Khon Kaen for another week. Thai and Lao Languages were used in the training program.

In 1995, aside from two training programs, an alumni seminar was held in Vientiane, in which a future project on rural development project inside Laos was discussed. In August 1995, some Thai experts were sent to Laos for a week to study the current situation of rural development in the country. A textbook on rural development exclusively for Laos is expected to be produced based on the result of the study.