Laos' export of farming products still underd
Laos' export of farming products still underd
Although there is strong regional demand for agricultural products, the volume of farming products exported by Laos remains underd.
A senior economist at the National Economic Research Institute, Dr Leeber Leebuapao, told Vientiane Times on Monday that people in Laos are used to growing crops solely for their own consumption, while selling any surplus to markets.
�To export to the region, we need to produce on large-scale farms so we can ensure that the quantity and quality of produce matches the demands and orders of consumers,� he said.
T he regional market opened up with the formation of the Asean Economic Community in 2015, triggering greater demand for agricultural produce.
But the quantity of crops grown by farmers and businesses remains small and scattered despite the government's policy to promote commercial production so that Laos can benefit from regional integration.
Another challenge is that neighbouring countries like Vietnam and Thailand are themselves major agriculture exporters so Laos needs to ensure its products are of high quality and large volume, and can compete in price.
�To accomplish this, we need to attract foreign investment into the farming sector which will result in the utilisation of modern machinery and techniques so that higher productivity will boost exports,� Dr Leeber said.
However the government needs to review its agriculture promotion policy, specifically how much tax relief should be granted to entrepreneurs so that Laos' farming products can be competitive in regional and world markets.
One of the most important things is that all government bodies need to sit down and agree on what should be done to help agribusiness grow.
Dr Leeber said Laos has huge potential to promote and boost agricultural productivity but the government needs to do more to assist the sector by finding markets for farmers as well as giving them more information about what crops they should grow.
Deputy Head of the Khammuan provincial Administrative Office, Mr Vannavong Vongphachanh, said Laos mainly exports mining commodities through Vung Ang Port to Vietnam and China, such as potassium and steel, which in time will eventually be exhausted.
Meanwhile Thailand exports farming products to China and imports electronic equipment in return.
�I agree that we have strong potential to increase our agricultural productivity and most importantly we need to work together to clearly define the exact causes of the problems and why our agriculture sector is so slow to develop,� Mr Vannavong said.
Over the past decades, the agriculture sector in Laos has grown by only 3 percent, accounting for 23.3 percent of GDP despite some 60-70 percent of the population relying on this sector.
In the meantime, the service sector grew by 8.5 percent, making up 39.8 percent of GDP, while industry grew by 9 percent, accounting for 28.8 percent of GDP.
