Govt urged to provide loans for processing industry
Govt urged to provide loans for processing industry
The government should set up a specific fund or loan for the business operations of the processing industry to promote investment in and expansion of the sector.
Industry and Commerce Minister Dr Nam Vinhaket recently proposed the idea to Deputy Prime Minister Somsavat Lengsavad when visiting the Lao-Indochina Group Public Company's tapioca factory in Pakngum district, Vientiane.
Dr Nam said Lao producers have sufficient processing capacity, raw material supplies, markets and product quality to meet international standards.
“Of special importance to boost production are crop planting promotion projects, which produce the raw materials to supply processing factories for export. With cooperation from farmers, these have worked well,” he said.
“We also see that some Lao products are selling well in China, including tapioca. So the government should have a clear policy to boost investment in this sector.”
Promotion of this sector is not only beneficial for tapioca production; it should also include the processing of maize, rubber and timber.
Dr Nam believes that acquiring both markets and supplies will not be a problem in the future because the Asean free trade area is set to come into being soon and Laos is now a member of the World Trade Organisation. “So now we're at the stage to enter into negotiations on exports to other countries,” he said.
It would be advantageous to set up a specific fund to promote investment in the industrial processing sector. “If the processing industry does not function well, it won't enable local people or farmers to plant more crops on larger areas of land,” he added.
Currently it's only the industrial processing sector that's driving crop production, processing and supply. “This sector will really help to eradicate poverty,” Dr Nam said.
He cited the example of how timber processors have not received money or loans from the government. However, they have money to buy timber because they initially obtained capital from foreign buyers. Then they process the timber into products which they sell to these buyers.
vientiane times
