Vietnamese company eyes agriculture investments in Champassak
Vietnamese company eyes agriculture investments in Champassak
Champassak province is studying a proposal by Vietnamese investors for a land concession to establish fruit tree plantations and commercial crops in the region.
The proposal was made by a Vietnamese company by the name of Souk Houngheuang, which is operating businesses in Laos and has its office located in the capital Vientiane.
The project was proposed during the company delegation's visit to the Champassak provincial Governor, Dr Bounthong Divixay in the province last week.
The company requires about 5,000 hectares of land concession in Pakxong district to invest in fruit and commercial crops for export and domestic supply.
The fruit and commercial crops include oranges, coconuts, avocados, guava, dragon fruit, longan, sweet potato, melon, tomato, sweet corn, coffee, and grasses.
The company is interested in the district as the land area is suitable for agricultural production.
The provincial Natural Resources and Environment Department is cooperating with district authorities to study the land to ensure there are minimal social and environment impacts before reporting to the government.
However, the provincial authorities are able to approve only 150 hectares of land, while larger areas should undergo central government consideration.
In the first period, the company requested about 3,000 hectares of land and 2,000 hectares for the second phase of project operation.
The company also plans to establish an agricultural research centre for fruit trees in order to provide appropriate techniques for fruit trees in Laos.
The project could be commenced as early as the end of this year if the government and provincial authorities consider the matter as a priority.
The company is also consulting with the provincial authorities to provide good policy and conditions for importing agricultural products.
Champassak province is one of the biggest agricultural production areas in Laos and its other notable potentials include tourism, minerals, natural resources and agroforestry.
Champassak is working in cooperation with many provinces of Vietnam. Currently, a total of 44 project s by Vietnamese companies have been launched in the province, with a combined worth of over US$326 million, according to provincial investment promotion section.
The projects have contributed greatly to Champ assak's socio-economic development, generating jobs for many local people and augmenting the provincial budget.
Vietnam's investments in Laos now total US$5.3 billion in registered capital, and more than 350 Vietnamese businesses have invested in sectors such as energy, mining, agriculture, forestry and banking.
