Phonesack Group leads Lao investment in Vietnam
Phonesack Group leads Lao investment in Vietnam
Phonesack Group has become one of the first Lao enterprises to invest in Vietnam as the two neighbouring countries enhance their economic cooperation.
The multiple industry enterprise officially kicked off construction of a US$50 million wood processing plant last week in the central province of Ha Tinh. The facilities will be complete and become operational in 2013.
Situated on a 30 hectare site in the Vung Ang Economic Zone, the wood processing factory will manufacture wood products such as floorboards, tables and desks with most of the raw materials imported from Laos, Myanmar, Indonesia and Malaysia, according to the Vietnam News Agency.
The factory requires 180,000 m3 of timber annually and is expected to generate jobs for over 1,500 local people.
Speaking at a groundbreaking ceremony for the factory last week, the Chairman of the provincial People's Committee, Vo Kim Cu, said construction of the factory is just one of the activities marking the 50th anniversary of Vietnam-Laos diplomatic ties, 35th anniversary of the signing of the Vietnam-Laos Friendship Treaty, and Vietnam-Laos Friendship and Solidarity Year 2012.
Attending the ground-breaking ceremony were Lao Deputy Prime Minister Somsavat Lengsavad and other senior Lao and Vietnamese officials.
Vietnamese Deputy Prime Minister Nguyen Xuan Phuc said at a joint meeting of Lao and Vietnamese ministries of Planning and Investment on Saturday that Vietnam would offer more opportunities for Lao businesses to invest.
"I also ask the Lao government to create favourable conditions for Vietnamese businesses to speed up their projects in Laos. Meanwhile, Vietnam will offer more opportunities for Lao businesses considering investment in Vietnam,” he said as quoted in the Vietnam News Agency.
Phonesack Group's investment in Vietnam has surprised many people, as it is a reverse of the usual situation which sees Vietnamese companies investing in Laos.
Vietnam is one of the top exporters of wood products.
The Lao government has tried to reduce the export of unprocessed timber, instead adding value to the country's natural resources by processing them before export. However, it is not easy to put this policy into practice because Laos has a shortage of skilled workers and markets.
Phonesack Group is a major company and operates a wide range of businesses including construction, mining and wood processing.
According to the Ministry of Planning and Investment, Laos and Vietnam plan to achieve bilateral trade of US$1 billion this year and US$2 billion in 2015 as part of efforts to boost economic cooperation.
vientiane times
