Agarwood investors meet to discuss future plans
Agarwood investors meet to discuss future plans
A consortium of investors from throughout Asia met in Vientiane recently to discuss the promotion and development of the agarwood industry in Laos, seeking to boost a sector which has previously suffered from lack of technical knowledge and capacity.
Self Holding Co., Limited (SHD), in cooperation with foreign investors from Singapore, Malaysia, Taiwan and China, ventured into the Lao agarwood industry one and a half years ago, to support the development project with farmers in Laos.
The initiative had the endorsement of the Ministry of Agriculture and Forestry and support from the Department of Home Affairs, Ministry of Home Affairs and the Vientiane Agriculture and Promotion Association.
To mark its progress so far, the company organised a dinner party on Tuesday night in Vientiane to warmly welcome participants in the venture from financial institutions, banking partners and the financial group Link Capital Pte. Ltd.
They were joined by insurance experts from Singapore together with the heads of agriculture and forestry, and underwriters from London to study the company's agarwood project and take it to another level with added protection for investment and insurance in the interests of investors and growers.
The meeting was also attended by special guests including former official from the Ministry of National Defence, Brigadier General Bouasiang Champaphanh, Deputy Director General of the Forestry Department Mr Boualy Phameuang and Deputy Director General of the Home Affairs Department Mr Vilakhone Mahavong.
During the ensuing discussions, Mr Boualy mentioned that over the past five years, Lao agarwood growers had suffered many problems due to a lack of knowledge of growing and marketing methods as well as the ability to engage in the improvement of the relevant technology.
The company has since seen results from its dedicated efforts in the past one and half years sampling agarwood growth in the existing inoculated agarwood trees from its plantations in Laos.
The positive results have brought forth confidence in the company's vision to progress the project to yet another level through research and product development to create awareness of Lao agarwood at an international level with an Initial Public Offering planned within the next three years.
The company expressed its appreciation to Mr Boualy for his strong endorsement and encouragement of the project and also the support of the Department of Home Affairs as well as the Agriculture Promotion Association, for making this project successful for the farmers of Laos.
SHD was established in Laos in 2013. It is one of the very few companies in the world to offer insurance coverage for its investors.
The company has also engaged lawyers from several countries to assist investors in their claims with the insurance company should the need arise.
The company signed contracts with agarwood tree plantations around the country for 30 million of the trees, prized for their dark aromatic resin.
The company has also promoted organic rice production in Laos.
In 2014, the company invited investors from China, Malaysia, Taiwan and Singapore to Laos to explore investment opportunities in agarwood, rice production, road construction and property development.
In 2015, SHD signed a joint venture contract with Taiwan Simson Agriculture Co., Ltd. and Agriculture Promotion Association for 2 million agarwood trees under the Quality Improvement Joint Development Project.
The contract aimed to improve the quality of agarwood in Laos and improve farmers' earning conditions.
