Organic products could be key to drive SMEs export growth
Organic products could be key to drive SMEs export growth
Small-Medium Enterprises (SMEs) in the country should be focusing on increasing their organic products which could be a strong point in competition in regional markets which could in-turn drive export growth.
Increasing products was the suggestion delivered by an official working in SME promotion that preferred not to be named commenting recently during a brainstorm around SME strategy development.
Experts believe that SMEs have high potential to expand the export of organic products overseas if the industry can be developed.
In addition, Laos is surrounded by five countries, especially sharing a border with China, so its products can grow even further in export.
The Lao organic rice market in China is considered a significant opportunity for Lao rice to access one of the world's biggest markets, which will guarantee a market in the future for Lao farmers.
Since 2000, Laos has exported over 300,000 tonnes of rice a year to Vietnam, Thailand, China and other countries, according to the Department of Agriculture.
Laos also plans to produce about 5 million tonnes of rice by 2020 to ensure food security in the country.
Last year, Laos' rice production reached 4.12 million tonnes and is predicted to increase to 4.35 million tonnes next year.
The SME promotion official suggested that SMEs are still behind in competing with countries in the region for other sectors to export but that they could take advantage of increasing organic production to expand their market shares.
Laos was still full of natural sources which suited clean industry development to drive its economy.
He hoped that the government would increase its support and aid in organic production to expand overseas markets aimed to ensure a more sustainable economy.
The Department of Production and Trade Promotion under the Ministry of Industry and Commerce reported that the agriculture sector remained the main income generator in Laos, generating 32 percent of the country's gross domestic product.
This figure serves to remind officials that agricultural production continues to play an important role in national economic development.
Although the organic sector is expanding and the government does have policies in place to boost organic production while it has also been working with the Ministry of Industry and Commerce to approve strategies for the export of organic products.
Today the ministry is expected to outline its proposal to develop the organic agricultural sector at a government meeting.
