Foreign fish farms provide healthy competition
Foreign fish farms provide healthy competition
A senior economist has expressed his support of Vientiane authorities' decision in allowing foreign investors to invest in fish farms.
The National University of Laos' Economic and Business Management Faculty's Research Division Director Assoc Prof. Dr Phouphet Kyophilavong said this would provide healthy competition and allow Lao fish breeders to improve their capacity.
Dr Phouphet told Vientiane Times last week that the government was promoting foreign investment, so the country needs to place suitable limits on it.
This policy is put in place to promote Laos' integration into the Asean Economic Community next year.
Through opening up the country to foreign investors and businessmen, it would push Lao operators to develop their businesses further and prepare themselves for overseas competition.
The quality of the products would also improve and this would be a benefit to their consumers as they could buy goods at a cheaper price, Dr Phouphet said. However, he urged the government to provide Lao breeders with support on technical breeding, marketing and receiving loans.
He said some businesses may collapse if they did not have a good management plan drawn up or if they did not improve their capacity.
Lao fish breeders have been struggling with competition from foreign farmers operating illegally in the past few years due to the poor management of local authorities.
Local fish farmers said they could not compete with foreign breeders as they had invested larger amounts of capital but lacked knowledge on efficient breeding and marketing techniques.
Most Lao farmers had to import fingerlings and fish feed from neighbouring countries, which also added to the cost of their operations.
Amid stiff competition and a lack of good management, Vientiane Fish Farm Breeding Group said that in the years ahead many Lao fish farmers may go out of business.
Foreign breeders have more access to funding, fingerlings and fish feed, as well as good marketing experience.
In the past, many fish breeders had to stop their business operation due to the owners' financial issues and poor marketing management.
However, some fish farms are still thriving and operating their businesses.
Most of them are raising fish along Nam Ngum and Mekong Rivers, according to the Vientiane Fish Farm Breeding Group.
Fish farm production is currently supplying a surplus of about 20 tonnes per day to the Vientiane market.
vientiane times
