Potential for growth in organic product sector, say experts
05-06-2017 08:06:06+07:00
Potential for growth in organic product sector, say experts
Small-Medium Enterprises have the potential to expand the export of organic products overseas if they can develop further as an industry, sector officials say.
Ms Phaengsi Nuvong, a local entrepreneur, commented recently that Lao Small-Medium Enterprises (SMEs) could increase their chances to compete in regional markets through their strength in organic products, however, they still lacked the ability to promote their production as an industry.This has led to a lack of confidence among organic manufacturers in long- term production to supply organic markets.
Ms Phaengsi explained that Laos is rich in natural resources, which suited the development of a clean products industry which could then help support local producers by providing a sustainable income.
Moreover, five countries surround Laos, especially China, so its organic products could further grow a larger base for export, she added.
An economy expert suggests that currently, there were many Lao organic products, which were becoming more widely accepted on the international market, especially Lao organic rice which has been inspected by the Administration of Quality Supervision, Inspection and Quarantine in China and has therefore been granted approval for export to China or the EU.
This has allowed Lao organic rice to expand to an overseas market, increasing the number of its export countries year to year.
The Department of Agriculture reported last year that since 2000 Laos has exported over 300,000 tonnes of rice per year to Vietnam, Thailand, China and other countries and that Laos plans to produce about 5 million tonnes of rice by 2020 to also ensure food security in the country.
However, entrepreneurs agree that Lao SMEs are still behind the ability to compete with countries in the region in other sectors for export but that they could take advantage of the increased interest in its organic products to expand their market shares.
They now hope that the government will increase its support and aid in organic product manufacturing in order to expand SMEs overseas markets, with an aim to ensure sustainable economic growth in the country.
The Department of Production and Trade Promotion under the Ministry of Commerce and Industry reported that the agriculture sector remained the main income generator in Laos, generating 32 percent of the gross domestic product.
Though the Lao organic sector is expanding and the government has policies in place to boost organic production and is currently working with related officials to approve its strategies in the export of organic products.
