Stricter legal measures needed to grow wood business
Stricter legal measures needed to grow wood business
The Lao Furniture Association (LFA) has called on the government to work on improvements to its legal measures as part of efforts to achieve more effective control of unauthorised businesses in Laos.
“A better legal system will be able to establish closer control of local businesses because some of them are operating quite independently and breaking the existing laws,” said LFA President Mr Khamphay Somsana at a recent consultative meeting in Vientiane.
He noted that over the past few years the government had already provided local businesses with a good legal system but it still needs stricter legal processes to help push forward the contribution of the association's members.
“By doing so, the control of members within the association will become more effective adding to their contribution in accomplishing the plans set and following the guidelines of the government,” Mr Khamphay said.
Recently the Lao government has warned that companies are forbidden from buying rare timber from local residents.
At the same time, unfinished wood products including logs, timber, sawn timber, tree roots, semi-finished wood products and ornamental plants are not permitted to be exported.
“This is good news for Lao people across the country as it helps to protect our forests and local wooden furniture makers will have a sustainable source of raw materials for further socio-economic development,” he said.
During the meeting, he also called on the government to reconsider th e provision of bank loans to various furniture businesses that have shown a good performance while conforming to the guidelines of the government.
“The government and the banks should carefully review those furniture businesses with a bank loan policy so they can continue their business operations, excluding ones that have performed badly or are producing products of substandard quality,” Mr Khamphay said.
With the objective of establishing greater control of the timber trade and to prevent revenue loss through the illegal export of timber from Laos, the government has also set stricter punishment for both domestic and international persons and b usinesses who fail to respect and comply with local regulations.
Early this year the Ministry of Industry and Commerce reported that the value of imports and exports climbed to more than 33.82 trillion kip (US$4.22 billion) in the first six months of the year, 11.8 percent more than in the same period last year.
The US$4.22 billion figure included exports worth over 14.35 trillion kip (US$1.79 billion), or 43.1 percent of the annual plan – a decrease of 0.3 percent from the same period last year.
Meanwhile the export of wooden products also added to the rise in export value along with other essential national revenue earners such as minerals, electricity, garments and agricultural pr oducts.
