Lao wood carver boosts output to meet surge in orders
Lao wood carver boosts output to meet surge in orders
Vientiane-based furniture exporter, Khamthanaphone Wooden Art Co Ltd, is set to expand production of its wood carvings when a new factory opens in Attapeu province at the end of this year.
The company is building the factory to meet the demand for its products, which is increasing every year, particularly from China where there is a high demand for products made from hardwood.
Company Director Mr Vilath Panyalath said they normally sell ornamental wooden items worth about 7.8 billion kip (US$1 million) each month, which are bought by six companies in China.
“Now we have a new Chinese buyer, a seventh company, who wants to buy items worth up to 234 billion kip (US$30 million) each year,” Mr Vilath said in an interview with Vientiane Times last Friday.
The buyer signed an agreement with Khamthanaphone Wooden Art Co Ltd on September 3 during the China-Asean Expo held in Nanning, China, for the purchase of carved products and furniture.
The two parties plan to carry out business for eight years, with a purchase agreement to be signed each year.
The carvings made by Mr Vilath's company are mostly in a traditional style favoured by Chinese people. “I have studied the Chinese market for over three years to learn what kind of product is popular there,” Mr Vilath said.
“We've sold so many of our products recently that our warehouse is now empty.”
He works with the Lao National Chamber of Commerce and Industry to study market trends and decide which exhibitions to attend in China.
Mr Vilath is confident he will be able to fulfil all the orders coming his way as the production process does not require much in the way of raw materials. Most of the wood used comes from scrap or off-cuts obtained from farms and furniture factories. Other wood is sourced from the government after being confiscated in illegal timber operations.
To ensure sufficient quantities of wood, Mr Vilath will partner with other factories in the production process and plans to train their staff on the kind of items required by Chinese buyers.
Khamthanaphone Wooden Art Co Ltd makes elaborate carvings of animals, gods, and other natural and spiritual forms that are used as decorative items. Each product is different.
“The cost of raw materials is low, but the production process is costly because our products are a mix of traditional and cultural carvings, as well as reflecting nature,” Mr Vilath said.
The company has obtained a government licence to operate the factory in Attapeu. They chose this province because it has a lot of waste wood discarded during the production of furniture.
The factory will occupy a 5-hectare lot and will employ more than 600 local people. There will also be a dormitory to accommodate staff, as well as a product showroom and other facilities.
“The plant must be good quality. We are investing about 39 billion kip (US$5 million) in the operation and it will be larger than our facility in Vientiane,” Mr Vilath said.
The plant in Vientiane employs about 300 workers, including some disabled people. It opened in December 2009 with only two staff, Mr Vilath and his son, in Hadxaykhao village, Hadxaifong district.
Today the employees have free meals, dormitory accommodation and other benefits. They earn from 700,000 kip to 6 million kip per month. “I still need more employees,” Mr Vilath said.
The company's main market is China, which takes about 80 percent of products, followed by Laos, Thailand, Japan and France.
Laos is gearing up to join the Asean Economic Community (AEC) in 2015. The trading bloc will create a single market and production base, leading to a highly competitive economic region that is conductive to equitable development, and a region that occupies a significant place within the global economy.
Mr Vilath said he has no concerns about the AEC and looks forward to it as the competition it brings will be an added challenge. It will also be a chance to take a look at competitors' products and to upgrade his workers' skills.
“The AEC will enable me to see the true market demand and what kind of market my competitors have,” he added.
vientiane times
