Champassak sees strong income growth from vegetable exports
Champassak sees strong income growth from vegetable exports
Champassak province's socio-economic development, especially in the agriculture sector, has seen steady growth in the last fiscal year with revenues grossing in excess of over US$17.8 million from vegetable exports to Thailand.
In total, the province exported mo re than 81,400 tonnes of vegetables, with the bulk being peanuts and cabbages, along with tomatoes, papaya, potatoes, sweet corn and ginger, according to a Champassak Chamber of Commerce and Industry offi cial.
Most of the vegetables are exported to Thailand through the Vangtao-Chongmek checkpoint development area at the Lao-Thai border.
“This was a significant increase in overall tonnage compared to the previous year, when the province's farmers produced some 63,400 tonnes of vegetables for export, with revenues grossing in excess of US$14.8 million,” said Dr Chinda Vongsouly, the President of the chamber.
The bulk of the vegetables are grown on a contract farming basis, which has increased considerably in recent years. Contract farming between Laos and Thailand began back in 2005, from small beginnings, with a little over US$1million changing hands.
Dr Chinda said that it has grown in popularity in the years since, due to increasing demand from Thailand. The province now has plans to construct a storage facility to keep the vegetables fresh.
There are also plans to encourage the local villagers to expand their plantation areas in order to grow more crops to meet the demands of the Thai market.
As a result of the implementation of the socio-economic development plan for the last fiscal year, it is estimated that the average annual per capita income in the province rose from US$1,034 in 2011 to US$1,428 in 2012.
The poverty rate remains at a low of 2.3 percent, amounting to 2,584 poor families. The GDP growth rate over the last ten years is very promising according to a recent report from the provincial Planning and Investment Department.
Macro-economic indicators embracing the government's policies and objectives have achieved a satisfactory level.
The province has already collected revenues grossing in excess of US$3.4 million from exports of 15,869 tonnes of vegetables to Thailand during the first four months of this year.
Due to its favourable conditions for agriculture the province could well be the food basket for the region, the department reported.
Champassak is a resource-rich province in southern Laos, sharing borders with Thailand and Cambodia. It is strategically placed close to the large markets of the neighbouring countries.
The province is home to over 89,700 inhabitants. It benefits from the newly established East-West Corridor between Myanmar, Thailand, Laos and Vietnam in respect to transport links to growing markets.
The Mekong River stretches from the north to the south of the province and contributes substantially to the potentials of economic development, especially in agri-business and tourism.
vientiane times
