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Laos exports US$80m in timber products last fiscal year
Timber remains one of Laos' major foreign exchange earners despite the government taking action to stop the exploitation of forests.
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| Lao timber products on show at Lao ITECC in Vientiane. |
According to a study on timber supply in Laos carried out by the Global Forestry Service Inc, Laos exported about 640 billion kip (US$80 million) worth of semi- and finished timber based products last fiscal year.
The European Union funded survey shows that timber was still one of the top foreign exchange earners for Laos in fiscal year 2010/2011. Other top foreign exchange earners were mining products, electricity, tourism, garment products, and cash crops.
The survey, which was made possible with cooperation from the Ministry of Agriculture and Forestry, identified the major importers of Lao timber as Thailand with trading value of about US$22 million, Vietnam with trading value of US$11 million, and Japan with trading value of US$4.5 million.
The European Union and Australia also imported Lao timber products worth US$147,579 and US$151,691 respectively.
The survey did not provide data on the export value of unprocessed wood despite the ongoing illegal export of unprocessed timber to the wood processing industry in neighbouring countries.
The government has made it clear it wants to keep natural resources as raw materials for the Lao wood processing industry, hoping to encourage foreign businesses to move their production base here.
The government believes that the presence of more modern timber processing plants will not only add more value to Lao natural resources before export, but will also be a source of jobs for local people.
Some overseas businesses have moved their production base to Laos but most are still concerned about a stable supply of timber and the market for timber products, despite increasing demand for timber-based products in China.
Forestry and commerce officials say the supply of timber in Laos is based not on demand but on the capacity of forests to provide wood. This makes it difficult to forecast the exact timber quota available to the industry each year.
According to the study on timber supply, Laos has 9.5 million hectares of forests, covering 40.3 percent of total land area. Of this, 3.2 million hectares are categorised as production forest, 3.4 million hectares as conservation forest, and 2.8 million hectares as protected forest.
The government approved a timber quota of 229,450 cubic metres last fiscal year, down from 319,658 cubic metres in fiscal year 2009/2010, and the 613,055 cubic metres approved in fiscal year 2008/2009.
vientiane times
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