Lao rattan processing industry faces challenges
 
Vientiane Times, 30 Dec 2009
 
Laos has the potential to produce and export large quantities of
rattan based products to world markets due the nation's abundant
supply of raw materials, but there are currently many challenges
related to the use of this plentiful natural resource.
 
Representatives of state run and private companies that produce rattan
goods in Laos met yesterday at the Lao National Chamber of Commerce
and Industry (LNCCI) in Vientiane to address these challenges,
including how to improve quality, cost effectiveness and more
efficient use of rattan.
 
Chamber Vice President Dr Sanan Chounlamany gave the opening remarks
at the European Union funded meeting.
 
The LNCCI says a key obstacle to growth in the sector is that the
government lacks an effective mechanism to collect taxes from
businesses involved in trading rattan products.
 
Company representatives noted that one example of how taxation was
restricting production was that they often had to pay taxes on
products twice, to both district and provincial authorities, whenever
they transported their goods to the provincial capital, saying this
inflated the price of rattan products.
 
The increased manufacturing costs of Lao rattan goods also makes them
uncompetitive with those produced in Vietnam and Cambodia .
 
Another major challenge in the rattan processing industry is that use
of the raw material is inefficient as many producers do not know how
to conserve rattan properly, leading to waste and causing depletion of
the plant.
 
The World Wildlife Fund has established a project to provide technical
support for the rattan processing industry to guide producers in more
efficient use of rattan, as well as helping them to produce goods that
are more attractive to consumers.
 
According to a report from the project, waste in the rattan processing
industry in Laos , Cambodia and Vietnam often reaches 55 percent of
the raw material. The use of chemicals in product processing also
causes an environmental impact.
 
The report notes that currently about 90 percent of rattan based
products made in Laos , Cambodia and Vietnam are of insufficient
quality to reach international markets.
 
The report also says that global trade of rattan based products could
reach US$4 billion a year, which presents an important opportunity for
the Lao rattan processing industry.
 
Vietnam is the top rattan exporter to Europe with a market share of
about 58 percent.
 
In Laos , Borikhamxay is one of the provinces with a plentiful supply
of raw rattan, representing a potential manufacturing hub for the
future.
 
An LNCCI official said the chamber was acting as a middleman to host a
forum for the public and private sectors to discuss the problems they
face, so they could cooperate to find solutions in the future and help
create a better business climate in Laos .

 

Secretariat <Leap@laoex.org> Dec 29 02:04PM -0800 ^
 
*Rice price increases in Savannakhet*
 
Vientiane Times, 30 Dec 2009
 
Rice prices have risen by 500 to 1,000 kip per kg in Savannakhet
province since last week because of the increase in demand for Lao
rice by local and Vietnamese markets.
 
Top quality Lao rice is selling well in local markets.
 
Prices have risen from 4,000 to 5,000 kip per kg for first grade
sticky rice and from 3,500 to 4,000 kip per kg for second grade,
according to a report received on Monday from the Price Planning and
Marketing Division of the Ministry of Industry and Commerce.
 
Market demand in both Laos and Vietnam has risen, as people stock up
on rice to use in snack and meal preparation this month and next.
 
“People are preparing and planning to make rice snacks and meals for
consumption over the New Year this week and for the Chinese and
Vietnamese new years in the coming weeks,” said the province's
Industry and Commerce Department Deputy Director, Mr Pholithat
Thykhammy, yesterday.
 
“Only the Vietnamese market demands up to 1,000 tonnes of rice at this
time.”
 
The report noted the rise in prices in local markets was due to
competition by middlemen and rice mill operators. “These people are
buying rice for export,” Mr Pholithat said.
 
The higher price is a boon for farmers as it puts more money in their
pockets. But prices will soon return to the normal range of 3,500 to
4,000 kip per kg after the Chinese and Vietnamese new years. “This
happens every year.”
 
The rise in price does not mean the province has a shortage of rice.
“We still have plenty of rice, which is stored in farmers'
warehouses,” he said.
 
Each year the province exports 2,000 to 3,000 tonnes of rice to
Vietnam .
 
Rice prices have not changed in Vientiane , where they are still 6,000
and 5,000 kip per kg for first and second grade rice.
 
But a significant change has occurred in the price of carp, which has
fallen from 20,000 to 18,000 kip per kg due to an increase in supply
by fish farmers, the division's report noted.
 
The Xaythany District Fish Breeding Group in Vientiane farms 557 fish
cages on the Nam Ngum River .
 
The group supplies 165 traders in 28 markets, restaurants, guesthouses
and hotels in Vientiane and the provinces of Xieng Khuang, Luang
Prabang, Xayaboury and Huaphan year round.
 
It cooperates with other similar groups in each district of Vientiane
to ensure demand is met.
 
Vientiane has four fish breeding groups - Xaythany, Sisattanak,
Hadxaifong and Sikhottabong - with a total of more than 1,530 fish
cages, according to the association.