Rice producer eyes Chinese markets
Rice producer eyes Chinese markets
An organic rice producer in Vientiane is keen to produce and supply some 30,000 tonnes of rice to the Chinese market per transaction, but access to fina nce remains a serious challenge, a company deputy director said.
Deputy Director of Khamphengphet Chengsavang Export-Import Company Limited Ms Chanpheng Sengthavy told Vientiane Times on Friday that her company looks forward to supplying growing demand for organic rice products in China.
The company was one of several hundred exhibitors at the 13th Lao Handicraft Festival, which concluded yesterday.
“We actually produce organic rice parcels and sell them to local markets and in some other countries such as China, the Republic of Korea and Vietnam, but it is not yet in the amounts that our customers wanted,” she said.
The company, located in Naxaithong district, Vientiane has received the “One District One Product” (ODOP) plaque from the Ministry of Industry and Commerce in recognition for its outstanding products.
Ms Chanpheng said the company was determined to demonstrate the previously hidden potential of Lao agriculture by entering regional and international markets under its own trademark.
“Nowadays we have to consider getting bank loans directly. We would the prefer financial backing from the relevant government sector which gives us lower interest and longer period for repayments, but it seems to take too long to get approval,” Ms Chanpheng said.
In the lead-up to the Asean Economic Community integration next year, the government is seeking to strengthen the business sector, especially Small and Medium Enterprises (SMEs).
Nevertheless a number of entrepreneurs still face problems with access to funds for business operations while relatively high-interest loans from banks remains a barrier for borrowers.
Speaking at a recent press conference, Governor of the Bank of the Lao PDR Dr Somphao Phaysith said the bank intended to provide loans for SMEs and other business operations in Laos but such borrowers needed to be able to display their proven repayment ability and business accounts must be accurate and up to date.
“Some entrepreneurs are required to take a longer time to prove credit-worthiness, following the procedures of the bank. It sometimes means people can't receive funding as quickly as they want,” he said.
Meanwhile some industry operators have asked for the government to carefully consider their approach to business operators who have been given loans but they do not carry out the business in compliance with their loan appl ications.
A senior representative from the business association also asked the government's relevant sectors to implement improvements as outlined in various related laws, regulations and decrees.
This would ensure these can be tools for more effective business operations in Laos and ready the country for greater international competition.
Meanwhile, Khamphengphet Chengsavang Export-Import Company Limited is keen to raise around US$20 million in the hope of buying more modern rice mills and other necessary equipment for use in production.
“We've submitted our request to the Vientiane authorities and other relevant government sectors a very long time ago but things se em to be quiet in terms of response,” she said.
She said if loans could be approved, the quantity of rice produced would be able to meet the demand in global markets.
vientiane times
