Korean companies to invest in black ginger plantation
Korean companies to invest in black ginger plantation
The government has granted 20 hectares of land to Korean companies to invest in a black ginger plantation in Sangthong district of Vientiane for domestic supply and also for export.
The land concession agreement for the black ginger plantation project and establishment of the Lao-Korea Black Ginger Development Joint Venture State Co., Ltd was signed on Wednesday in Vientiane between Vientiane Planning and Investment Department, Sangthong district, and the concerned Korean companies.
In attendance were Department Director Mr Phoukhong Bannavong, Sangthong district Deputy Governor Mr Buakham Sisongkham, President of Lao-Korea College Sole Co., Ltd Mr Lee Jung Hwan and KRD-Kingdam of Herb Co., Ltd Director Mr Jin Hang Suk.
According to the agreement, the Lao government will hold a 20 percent share and the Korean investors will hold an 80 percent share.
The companies will encourage farmers in Yainachalern village in Sangthong district to grow black ginger on an area of 20 hectares of the project and sell it to the Lao-Korea Black Ginger Development Joint Venture State Co., Ltd for processing into ginger products and sale both domestically and abroad.
The concerned companies were granted a 30 year land concession, with the companies to invest an initial 8 billion kip (about US$1 million) for the black ginger plantation.
The companies will plant black ginger in Yainachalern village as a model project and we plan to expand the project into other districts in the northern provinces of Laos in the future, said Mr Lee Jung Hwan.
“We have Korean ginseng and it is a very popular herbal supplement in Korea; there are many health benefits of black ginger that many people may not know about.”
So we decided to invest in the black ginger plantation in Laos for domestic supply and also to sell abroad, he said.
Mr Lee Jung Hwan added that this project will help contracted farmers in the project to obtain jobs and generate income for their families.
