Pro-Poor Partnerships for Agro-forestry Development Project (3PAD) in Bac Kan province aimed to achieve sustainable and equitable poverty reduction and to improve the livelihoods of the rural poor in mountainous areas of Bac Kan Province. The project established an Agribusiness Promotion Investment Fund (APIF) with a total value of USD 2 million in financial support to provide up to 49% of its capital, including tax for public commodities generated from investments in Bac Kan Province. APIF aimed to create a premise for participation of the private sector in the province’s development in order to improve livelihoods; thereby transforming the traditional farming model to commodity-oriented, semi-commercial agriculture system. This transformation was essential to market development including supply chain and value chain improvement.