LBC needs more products for AEC: management
LBC needs more products for AEC: management
Lao Brewery Company Limited (LBC) is undertaking a strategic plan to diversify from just beer and soft drinks ahead of increased competition with the looming Asean Economic Community.
LBC Managing Director Mr Kissana Vongsay recently told local media that LBC currently has a 98 percent share of the local market but the free flow of foreign products may cause future uncertainty for local products.
“We have to be more active in thinking of producing a variety of beverage products to provide more options to local customers,” he said.
“LBC has already arranged its strategic plan by hiring foreign consultants to outline the short term and long term plans,” he said, noting that human resource development was also one of the company's key priorities for future plans.
The company has hired some foreign experts assist local employees to learn best international practice.
“We have also sent some of our staff to be trained in foreign countries in the hope of helping them to broaden their skills,” Mr Kissana said.
The AEC will boast a total population of 600 million; but with increased customer numbers there is extra business competition.
One of the biggest challenges in regional business integration for Laos is that it has no access to the ocean which increases transport costs of imported raw materials and processed export goods.
Mr Kissana also pointed out that LBC currently exports beer to more than 20 countries around the world but only in small quantities to foreign markets.
“If we take a look at the AEC, it will be one single market and one production base. So, it can be also good opportunity for us because our brand products can be produced in other countries by a joint venture deal with local companies,” he said.
He also said that LBC may be the biggest company in Laos but if compared to other countries, the company remained medium d with over 2,300 employees working at three factories nationwide.
Over the past three years, the company paid more than 4.5 trillion kip to the government in tax and it expects to pay around 2 trillion kip this year.
