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Furniture group aims to boost raw materials supply
The Lao Furniture Association (LFA) will try to improve itself by operating as a wood bank to ensure the sustainable supply of raw materials to furniture makers.
A table made from recovered wood on display at the Furniture and Home Appliances Exhibition at Lao-ITECC in Vientiane recently.
The wood bank will operate by buying timber from government projects to supply local wood product manufacturers.
“Where there are projects that require the cutting down of trees, such as dam construction and mining, the LFA will buy wood from the government,” LFA President Khamphay Somsana said.
Speaking at the opening ceremony of the fourth Furniture and Home Appliances Exhibition at Lao-ITECC in Vientiane two weeks ago, Mr Khamphay said the government should provide the LFA with credit.
The move will add export value to Lao wooden furniture products, which is something the government is working hard to achieve.
Despite Laos having large stocks of unprocessed wood, the LFA suffers from a lack of supply, Mr Khamhay added.
Laos has many banks, which are ready to provide funding for businesspeople or enterprises with markets and trade agreements, he added.
Mr Khamphay said Industry and Commerce Minister Dr Nam Vinhaket recently advised the LFA to put together a project proposal for discussion.
The proposal will inform the government on the importance of the move, namely the value it will add to Lao furniture products. In the long run, it will help the LFA to grow, through support from the ministry and government.
“The government is ready to work and cooperate with us,” Mr Khamphay said.
The LFA also plans to merge with the Wood Product Association in the near future. LFA Deputy President Mr Kongmala Phommalay said “The two associations produce similar products, but they operate separately under different management at present. This is not ideal in light of the decreasing supply of raw materials.”
Another important issue for the LFA is training unemployed people to become skilled workers in the field.
Laos currently has many general labourers, but very few skilled ones. Skilled workers receive much higher wages than unskilled, causing unskilled workers to be at a disadvantage when working for a company or project.
The Ministry of Education's National Training Council Office Head Mr Khamchan Sengchansouliya said recently “A skilled worker earns about 15,900,000 kip per month, while unskilled workers make about 1 million kip.”
The ministry is now focusing on training in four main vocational skill areas: furniture, construction, auto repair, and business administration and management.
It is becoming increasingly recognised that skilled workers are essential to economic growth and regional and global integration.
vientiane times
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