Lao, Japanese investors fire up charcoal trade
Lao, Japanese investors fire up charcoal trade
Lao Union Development Agriculture Company Limited (UD Farm) and Japanese Kei Zan Company Limited have joined forces to produce white charc oal for export to Japan.
The Lao and Japanese companies signed a Memorandum of Understanding (MoU) on cooperation in sustainable charcoal manufacturing last week in Phonhong district's Mai village, Vientiane province.
UD Farm President Mr Nitsavanh Luangkhotpravongvienkham and Kei Zan Company President Mr Keichi Asano signed the MoU.
Under the MoU, the Japanese side will provide the necessary technical expertise and capital to UD Farm and be responsible for marketing. The Lao company will be responsible for allocating thousands of hectares in Vientiane province and possibly other areas for planting mai tiew trees (Cratoxylon prunitfolium) from which the charcoal is made.
Mr Nitsavanh said it would take about five years for the mai tiew trees to reach maturity.
He said UD Farm was working with the Japanese company because they processed charcoal from industrial plantations while also replenishing the trees.
The project would also pass on farming techniques and charcoal processing methods from qualified and skilled experts to local residents and entrepreneurs.
Mr Asano said he was pleased to sign the cooperation agreement with a large company like UD Farm because it had large plantations and other facilities to produce white charcoal.
He said his company, which has been operating in Laos for several years, had already exported 700 tonnes of mai tiew white charcoal to Japan.
Deputy Minister of A griculture and Forestry Dr Phet Phomphiphak, Vientiane province Deputy Governor Ms Singkham Khongsavanh, Japanese Ambassador to Laos, Lao Ambassador to Japan, local authorities, residents and students from secondary and primary schools attended the signing ceremony, which was followed by a tree planting activity to mark National Arbor Day.
The agreement on cooperation between the Lao and Japanese investors comes as the two countries celebrate the 60th anniversary of their diplomatic ties.
