Lao food market faces export challenges
Lao food market faces export challenges
Foreign consumers are fond of Lao food and beverages, as they are very tasty and organic, but there is still a long way to go before this potential will be turned into a profitable export market.
One of the main reasons is the lack of foreign business partners to help exporting Lao goods to foreign markets. It is very challenging for Lao food producers to rent shops in foreign countries to sell their products.
Dao-Heuang Group Marketing and Public Relations Manager, Mr Thanousinh, told Vientiane Times at the Asean Fair in Seoul last week that South Korean tourists found Lao coffee tasty when travelling in Laos, adding that these people brought a lot of the goods back home.
However, the group has not exported goods directly to the South Korean market as the company lacks South Korean business partners.
“I've made an appointment with Korean businessmen to discuss the partnership. I will meet them this afternoon,” he said.
An official from the Lao Ministry of Industry and Commerce Mr Saykham Phommakhod, who led the Lao business people to take part in the trade fair admitted that foreign customers like Lao food and beverages thanks to their premium quality and organic ingredients. However, he said that Lao businessmen need partners.
“The Lao government promotes Lao business people to exhibit their goods at the trade fair so that they can find business partners,” Mr Thanousinh said.
Another challenge for the Lao food exporters is their lack of knowledge on regulations in foreign markets.
A Lao businesswoman, Ms Thongsawanh Bounleuth, who took part in the fair, said foreigners like Lao food and herbs. But this does not automatically mean that goods can be exported in order to meet the demands of the foreign markets.
She added she lacks knowledge on South Korean import and export regulations and therefore it is challenging for her to export goods to the South Korean market.
“I used to export dried herbs to South Korea. It was very difficult if we exported more than 100 kg,” she explained.
Asean-Korea Centre is one of the active organisations, trying to help foreign business partners, in particular from Asean countries, to study import and export regulations of South Korea. However, it will take some time for Lao businesses to learn all the regulations.
According to experienced businessmen, many foreign countries welcome goods from Laos. However, they are very strict when it comes to inspecting the quality of imported goods, and food in particular. The goods should be packed nicely and the package should mention all the ingredients used.
English is also a key factor in success, because it makes it easier to start negotiations with foreign business partners.
Ms Thongsawanh admitted that language was one of the barriers for exporting, adding that a number of customers visited her shops while exhibiting her goods in Seoul where she found it challenging to explain the benefits of her herbs.
