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Furniture maker carves larger market niche
A furniture exporter, Khamthanaphone Wooden Art Co Ltd, is set to build a large showroom in Vientiane and a second factory in Attapeu province before the end of the year.
“The two projects will cost about 2.4 billion kip (US$300,000),” company Director Mr Vilath Panyalath said during a New Year party hosted by the company in Vientiane on Sunday.
The company will build the new factory to meet the demand for their products which is increasing every year, particularly from China where there is a high demand for products made from hardwood.
“I will expand production to the south because of the availability of the timber that our production process requires,” Mr Vilath said.
Eighty percent of the company's products are exported, with the rest sold locally.
There are also plans to build a three storey showroom in Hadxaifong district for buyers and visitors.
The company currently employs over 200 people. “I plan to hire 100 additional employees this year to boost output,” Mr Vilath said.
The company uses waste wood to make elaborately carved animals, gods, and other natural or spiritual forms that are used as decorative items.
Demand is increasing each year and the present production capacity cannot keep pace. “We can now only meet around 50 percent of demand because we don't have enough timber or employees,” he said.
Sales this year are expected to be higher than last year by as much as 50 percent. As the market grows, the company estimates it will need 3,000 to 4,000 cubic metres of timber this year.
“We currently have large orders from both local and Chinese customers and we cannot keep pace with demand. We're hoping the Lao Furniture Association will be able to obtain an increase in the wood quota from the government,” he said.
Association President Mr Khamphay Somsana recently told members not to be concerned about the current shortage of supply because he had submitted a proposal to the government requesting an increase in the supply of timber. The state sector has since agreed to provide all the wood necessary for full scale production at factories.
The association signed a business cooperation agreement with a Chinese furniture import group in October. The agreement will see the production of furniture worth up to 2.6 trillion kip (US$333 million) per year to supply the Chinese market for the next 20 years.
vientiane times
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