Wood export ban won't affect furniture market
Wood export ban won't affect furniture market
Furniture makers won't be affected by the Prime Minister's ban on the export of all forms of logs and timber, according to the Lao Furniture Association.
Association officials said the ban includes the logging quota previously approved by the government and requires that all wood must be processed and converted into finished products before being exported.
Officials explained that furniture will now undergo closer inspections to prevent illegal trading. This will result in better quality furniture for export as well as for sale on the domestic market.
But furniture makers say they need more wood and a larger timber quota so they can expand production. Attempts to address this supply problem two years ago were unsuccessful.
Furniture traders hope the new government will provide them with enough wood to expand production so they will have a competitive edge within the Asean Economic Community, which enables the free import of foreign furniture.
Those in the industry say exports to Laos' largest market China have fallen since 2014 due to the economic slowdown.
The Sithon furniture factory saw its exports to China fall by almost 90 percent last year, but business has picked up this year.
Factory s taff say the ban on the export of logs and timber should mean that more wood is available for Lao furniture makers, but this will only be known when the government submits its annual logging quota to the National Assembly.
