Charcoal exports to Korea heating up
Charcoal exports to Korea heating up
A number of Lao people may view wood charcoal as worthless but the cooking charcoal has the potential to become a major foreign currency earner for Laos in future years.
According to a data from the Ministry of Industry and Commerce's Foreign Trade Policy Department, demand for Lao wood charcoal in the South Korean market is increasing as Korean people want to use traditional ways to warm their homes.
The data shows the export value of Lao wood charcoal to the South Korean market has continued to rise over the past few years; from US$164,000 in 2008, to US$358,000 in 2009 and US$662,000 in 2010. The foreign trade department did not provide the export data of Laos to Korea for 2011 and 2012 but cited the fact that the export value of the commodity is continuing to rise.
There is also increasing demand for Lao charcoal in Japan, according to Lao exporting firms, which are advising Lao farmers to produce wood charcoal for export. However, one of the challenges is that the supply of raw materials to make charcoal is limited.
Many people have recommended Lao farmers plant a number of fast growing trees for the purpose of making charcoal, which will secure a supply of timber to produce the charcoal for export.
They also urged the sector concerned to conduct a study on establishing tree plantations for the purpose of making charcoal, as they consider that it is a better option than cash crops and other industrial tree plantations.
At present, many Lao farmers would like to grow agar wood or rubber trees. However after a decade of planting, Lao farmers haven't been able to extract substantial benefits from these industrial tree plantations as yet.
According to data from the Ministry of Industry and Commerce, among the potential products which Laos can export to South Korea after the country becomes a member of the WTO are wooden furniture and kitchenware, as the export value of the goods continues to rise.
The data shows that export value of furniture products increased from US$88,000 in 2008, to US$87,000 in 2009 and US$94,000 in 2010. Export value of strips and friezes for parquet flooring, men's shirts, and beer made from malt have also seen rapid increases.
New Lao products which the South Korean market has welcomed include Lao coffee, women's dresses and cotton, according to the data.
At present, Korea offers lower import tariffs for Lao products as the country has least developed nation status. Trade officials said that Lao businesses need to establish more joint ventures with Korean partners to increase the export value of Lao produce to the Korean market.
Bilateral trade between Laos and Korea reached more than US$115 million in 2011, with export value of US$3.7 million and an import value of about US$119 million, resulting in a trade deficit of about US$111 million that year.
Lao imports from Korea are predominantly vehicles and spare parts, as well as electronic equipments, according to the data from the commerce ministry.
vientiane times
