Chinese importer extends contract with Lao woodcraft company
Chinese importer extends contract with Lao woodcraft company
A Chinese importer of Lao wood carvings and furniture is seeking to extend its agreement for another 10 years, with the company satisfied with the quality of the products being supplied.
The Quangzhou Economic and Technical Development District Construction Import and Export Company entered into a memorandum of understanding with Khamthanaphone Wooden Art Co., Ltd. to import their products from 2010-2015. Now the Quangzhou Company wants to extend the contract until 2022.
To give some certainty to the Lao manufacturers, the Quangzhou company agreed to import almost US$800,000 worth of goods each month from Khamthanaphone, Director Mr Vilath Thanyalath told Vientiane Times on Wednesday.
The company can currently produce between US$120,000 to US$150,000 worth of goods every month. They would like to be able to produce more but are hampered by a lack of raw materials and skilled craftsmen, Mr Vilath said.
However, the company will continue to upgrade the skills of their current employees, as well as bring in new craftsmen, he added.
“We also want to increase cooperation with the government,” he said, “especially the industry and commerce sector. We need to ensure a wood supply quota to guarantee the company can continue processing.”
Since the company was established in December 2009, we have worked to develop the design and quality of our products and also our marketing for domestic and overseas markets,” Mr Vilath said.
Last year, the company produced 108 types of products including animal carvings, Lao and Chinese Buddha carvings, bowls, trays, boxes and furniture. This year, they increased their range of products to 150, and plan to continue designing new products each month.
The company's products are popular with both Lao and Chinese people as they reflect the culture and traditions of both countries, Mr Vilath said.
“Some traders in Thailand and Singapore want to make contracts to buy our products but at the moment we can't because we can only just manage to supply the Chinese market,” he said.
They have to negotiate with the Chinese company about every new product they make, in order to secure a guaranteed price.
“To ensure the quality of our exports to China, we will keep our current model which enjoys the confidence of our buyers and customers,” Mr Vilath said.
In Laos, and especially Vientiane, there are many woodcarving enterprises that make similar products using the same kind of wood, but their designs are slightly different.
Most of the timber used by Khamthanaphone is dry and waste wood, as well as the dead tree trunks of high value trees that have fallen over.
Company staff work with timber varieties such as Afzilia xylocarpa (may taekha), Dalbergia conchineses (may khanhoung), Pterocarpus macrocarpus (may dou) and Hopea ordorata (may khaenheua).
vientiane times
