Lao timber industry eyeing EU market
Lao timber industry eyeing EU market
Imports make up 15-20 percent of the total European market for timber furniture representing 23 billion euro per year in turnover, which now represents opportunities for the Lao industry.
That's according to a recent meeting on the “Introduction to European Timber Products Market,” in Vientiane, a press release from the European Chamber of Commerce and Industry in Laos said.
The meeting opened up the opportunity for Lao government officials to engage with the EU to negotiate a Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (FLEGT).
“For Laos to take a share of the EU market comprising 28 Member States, we need to ensure that our timber products comply with the requirements of the EU Timber Regulation (EUTR), apart from standard requirements on product safety, chemicals and contamination checks,” said Deputy Director General of the Department of Industry and Handicraft of the Ministry of Industry and Commerce, Mr Manohack Rasachack.
Mr Manohack explained these requirements, the EUTR in particular, such as prohibiting the placing of illegally harvested timber on the European market, and serving as a mechanism to promote the trade of legal timber products while strengthening sustainable forest management and good governance in the forestry sector.
Chief Executive Officer at Stern, Mr Juergen Brackmann, whose German company specialises in outdoor furniture for the European market, said Laos had political stability, which was a great entry point for timber buyers who were seeking a long-term relationship with suppliers.
Mr Brackmann added that for EU buyers reliability of supply was crucial, such as on time delivery and consistent quality.
Professionalism and reputation of suppliers were also important to the buyer, visualised mainly through human resource management and corporate social responsibility policies, as buyers can use these to promote their companies to customers in the EU.
Since, March 3, 2013, the EUTR, as part of the EU's FLEGT Action Plan, has required timber operators to put in place systems of ‘due diligence' to minimise their risk of handling illegal timber.
“Through the FLEGT, the wood processing sector will gain access to the EU market - 28 EU Member States - as well as to other countries implementing legality requirements, such as the USA, Australia, Japan, and other markets,” Executive Director of the European Chamber of Commerce and Industry in Laos, Mr Ramon Bruesseler, said.
“Through the process, companies in Laos could also realise various benefits, particularly strengthening value-adding wood processing, growing the export of timber products especially to the European Market, employment opportunities, promoting fair competition between companies and markets, as well as improving sustainable forest management,” he added.
