Laos to amend industrial processing law
Laos to amend industrial processing law
The government is revising the industrial processing law as part of efforts to ensure the sustainable use of natural resources.
The Ministry of Industry and Commerce has posted the newly drafted law on its website, hoping that the sectors concerned will comment on the proposed amendment before it is submitted to the Cabinet and National Assembly later this year.
According to officials involved in revising the law, one of the main purposes of the amendment is to ensure that factories in Laos are equipped with modern technology so they can process raw materials efficiently.
Laos has an abundance of natural resources such as timber and agricultural products so the government is encouraging the building of factories to convert these resources into saleable goods. But at present these factories are inefficient and wasteful and are not maximising the potential of the country's natural resources.
In recent years the Ministry of Industry and Commerce has shut down sub-standard timber factories around the country and urged them to improve their production lines before reopening.
The use of modern technology and machinery will require fewer workers, which will be beneficial in view of the current labour shortage. The garment industry in particular is suffering from a shortage of workers, but will require 60,000 factory staff in 2015 to meet market demands.
The government's development strategy is to turn Laos into a modern and industrialised country. The greatest potential lies in the processing sector, such as cement processing and the manufacture of construction materials.
Industry officials say the proposed amendment to the law aims to ensure that processing factories are equipped with specific measure to address social and environmental impacts. At present, a large number of factories are having a negative impact on the environment.
The government is aware of the need for environmental protection if industry and economic growth are to be sustainable. Officials are creating development policies that will ensure economic progress does not come at the expense of the environment.
The revised industrial processing law will also encourage domestic and foreign investment in agri-business, to capitalise on Laos' large areas of fertile land and the potential to produce high crop yields for the food processing industry.
At present, most farmers grow and sell crops to Thailand and Vietnam. But the government believes that by processing these crops into food products, more value can be added to agricultural products prior to export to world markets.
vientiane times
