Members Login
Post Info TOPIC: Cassava processors seek export tariff exemptions

Cassava processors seek export tariff exemptions

Cassava processors seek export tariff exemptions
Vientiane Times, 4 Mar 2010
Lao cassava powder processors will be able to gain greater footholds
in the Chinese market if the product is granted tariff reductions or
Officials from the Ministry of Planning and Investment visit a cassava
powder production facility in Vientiane.
The Lao Indochina Group Company (LIG), a major producer of cassava
powder, raised the issue with officials from the Ministry of Planning
and Investment during their visit to the company's factory in Pakngum
district, Vientiane, on Tuesday.
“If possible we need to get a Generalised System of Preference (GSP)
from China, which will mean zero import taxes,” said company Chairman,
Mr Sengmaly Sengvatthana.
Currently the company pays a 10 percent tariff on cassava powder it
exports to China. “However, cut and dried cassava is tariff free,” Mr
Sengmaly said.
Deputy Head of Office of the Ministry of Planning and Investment, Mr
Boua-nguen Chanthabouly, said “Currently we and other state sectors
are working on the issue. The issue is not only for exports to China,
but also to Vietnam.”
Officials are working on tariff reductions or exemptions on exports of
120 products manufactured locally.
Mr Boua-ngeun said officials from the ministry visited China recently
to discuss the issue.
Officials believe macro-level economic policy grants tariff exemptions
on all agricultural goods.
“However, policy implementation at the micro-level is still facing
some challenges that need to be addressed,” Mr Boua-ngeun said.
Lao cassava powder producers feel they are at a competitive
disadvantage because they face high transport costs together with
export tariffs.
LIG's products remain competitive in Chinese markets due to their high
quality and organic standards.
Local farmers grow cassava without the use of chemical fertilisers.
“This is our only competitive advantage,” Mr Sengmaly said.
“Our fertile soil is to the benefit of farmers, and we will encourage
them to grow more.”
Numerous Thai traders have expressed interest in the company's
product, but the company has entered into contracts to sell
exclusively to Chinese buyers.
LIG's plant in Vientiane produces 150 tonnes of cassava powder a day
and about 80 percent of its output is shipped to China, with the
remainder going to domestic markets.
A cassava processing plant in Meun district, Vientiane province, began
production last year and has the capacity to produce about 200 tonnes
of powder per day. It primarily exports to Vietnam.
A factory in Champassak province will start production this month with
a capacity of 200 tonnes of powder per day for both local and overseas
According to the Ministry of Industry and Commerce, another factory
produces cassava powder in Lau-ngam district, Saravan province. It is
Vietnamese-owned, and exports to Vietnam and China.
Cassava is an ingredient in noodles, snack foods and seasonings. It is
also used in the production of clothes, glue, paint, paper, medicine,
false teeth and prosthetic limbs.


Page 1 of 1  sorted by
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to

Create your own FREE Forum
Report Abuse
Powered by ActiveBoard