Savannakhet exports nosedive
Savannakhet exports nosedive
The value of Savannakhet province’s exports has not reached 65 percent of annual plan this fiscal year because of a major cutback in mining output.
The province initially expected to achieve about 10.91 trillion kip (US$1.39 billion) in exports for 2013-14.
Instead, a provincial Industry and Commerce Department official said yesterday, the figure was only about 7.02 trillion kip (US$877 million) for the first 11 months.
“The figure is much lower than expected because of a cessation of gold exports and the export of copper is also much lower than in previous years,” a department official said on Monday.
“The export of gold stopped early this year in March or April,” the official said.
“However mineral ore exports are still the main income earner for the province, worth around US$639 million.”
The ore is mainly exported to Vietnam, worth about US$509 million, Thailand around US$37 million, China about US$82 million and Australia about US$11 million.
The province also has other industrial and agricultural production for export to Japan, the Republic of Korea, Singapore and Malaysia. These products include rice, textiles, electronic products, vehicle spare parts, sugar and wooden artefacts.
The US$877 million included about US$607 million in exports to Vietnam, US$162 million to Thailand, US$83 million to China, US$11 million to Australia, more than US$200,000 to Japan and over US$196,000 to the Republic of Korea.
The total export value in the last fiscal year was down 4.66 percent from 2011-12 and finished 30.68 percent lower than expected, according to a report at the end of last year.
Lower than expected mining exports were largely to blame for the reduction, reaching just 5.59 trillion kip (US$717.41 million) or 76.08 percent of target.
Wood product exports reached 75.06 billion kip (US$9.62 million), which was a 34.46 percent decline on the previous year, while industrial and agricultural exports were down 59.3 percent to 150.42 billion kip (US$19.28 million).
Those three sectors combined made up more than 90 percent of the province’s total exports.
Currently the province has more than 2,000 industrial and handicraft producers, not including those in the special economic zone.
The 2,000 companies include 285 factories producing wooden artefacts with an investment of more than 2 trillion kip and which employ over 14,000 local and foreign people.
The province also has an industrial zone, the Savan-Seno Special Economic Zone that is a booming investment zone for local and foreign investors.
By May there were 37 companies established in the zone with production facilities as well as administration offices and there has been a total investment of about 1.293 trillion kip (US$161.7 million) in the zone with a registered capital of about 341.6 billion kip (US$42.7 million).
The 37 companies consist of 10 backed by local investors, 20 with foreign investment and the remaining seven companies being joint ventures between local and foreign investors.
By the end of this year, the zone will have attracted an additional 10 local and foreign companies to establish their businesses there.
Laos is boosting the production of goods for export to take advantage of the Generalised System of Preferences, which cuts tariffs on goods exported to more than 40 developed countries.
vientiane times
