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Govt urges tapioca maker to continue farmer support
Lao Vice President Bounnhang Vorachit has praised a major local tapioca producer, the Lao Indochina Group Tapioca Factory, for its cooperation with farmers on raw material production and processing for export.
Mr Vorachit yesterday visited the factory in Pakngum district, Vientiane, during a trip to the district to witness the living conditions of local people and their production activities, as well as the impact of recent flooding and the progress of healthcare, security and development projects.
“The company has grown very fast since its establishment only a short time ago,” he said, adding that the company's operations follow the guidelines and policies of the Party and government.
Mr Bounnhang urged the company to continue to help local farmers with technical assistance and training so they can enjoy more productivity and more employment opportunities.
He said the company's cassava plantation promotion project has helped to improve the living conditions of local people and contributed to the reduction of poverty in line with the government's plan.
The company provides the capital for the project along with technical training and market access, while local people provide the land and labour, the Vice President explained.
“The project helps more people to get jobs and earn an income,” he said, adding “it also helps to put a stop to people crossing the border to find work.”
Lao Indochina Group Tapioca Factory Chairman Mr Sengmaly Sengvatthana said the company has 7,689 hectares of cassava crops, providing employment opportunities for over 2,200 families in 141 villages in Vientiane and Borikhamxay provinces and the capital. It plans to expand cultivation to 10,500 hectares next year.
Some 90 percent of its products are exported to China while the rest is sold locally. “The Chinese market requires over 300,000 tonnes of tapioca per year,” Mr Sengmaly said. However, the plant can currently produce only about 320 tonnes each day.
The privately-owned company is now preparing for listing on the Lao Securities Exchange. “We have taken one year to prepare for this and we expect to sell our initial public offering (IPO) next month,” he said.
Cassava powder is an ingredient in noodles, snack foods and seasonings. It is also used in the production of clothes, glue, paint, paper, medicine, false teeth and prosthetic limbs.
Other factories producing cassava powder in Laos are located in Lau-ngam district in Saravan province and Meun district in Vientiane province and both produce for local and overseas customers. Another tapioca factory is in Champassak province, the KPN Tapioca Factory.
vientiane times
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