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Rubber factory construction underway in Luang Namtha
Yunmong Jinxing and Chenhuae Trading companies of China are investing US$3.5 million to build a rubber processing factory in Viengphoukha district, Luang Namtha province.
An ground breaking ceremony for the construction took place last weekend and was attended by officials from the provincial Planning and Investment Department and the provincial Industry and Commerce Department, along with representatives from Yunmong Jinxing Company.
Ownership of the factory will be split between the two companies on an 80/20 basis, with the majority belonging to the Yunmong Jinxing Company. Construction is scheduled to finish next year, accord ing to local media reports.
The project will help to improve the living standards of local people by providing jobs and regular incomes, according to provincial Deputy Governor Mr Simoun Thounphouvieng.
The province currently has three districts – Long, Viengphoukha and Nalae – that are regarded as poor, therefore provincial authorities have been encouraging foreign and domestic investors to set up businesses in the areas in an effort to boost development, he said.
The new factory is expected to make a significant contribution to the local economy while also improving the lives of locals.
The project will provide a boost to commercial production activities in the area, Mr Simoun said.
The new factory will also cut production costs for local rubber farmers, who will have less distance to travel when transporting their products for processing.
Mr Simoun urged the developers to closely adhere to the project plans by taking responsibility to ensure no shortcuts are taken with regards to quality and standards.
He also stressed that the impacts on the local community should be kept to a minimum during the construction period and recommended that any problems that arise be resolved quickly.
The deputy governor also called on the companies to respect local culture and traditions and to adopt employment policies which are suitable for managing Lao workers.
The provincial planning , investment, industry and commerce sectors are ready to cooperate with the Chinese company in order to ensure the success of the project, he added.
Luang Namtha province is regarded as a model for commercial rubber farming in Laos, where rubber production is already improving the living conditions of locals.
Provincial farmers began planting rubber trees in 1994 and the first profits were made in 2002-2003.
The province has almost 30,000 hectares of rubber plantations, owned by both domestic and foreign companies, but due to objections from some local people the provincial authorities have now stopped approving land concessions to foreign companies for rubber plantations.
vientiane times
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