Laos PM welcomes further Vietnam Rubber Group investment

Ho Chi Minh City – The prime minister of Laos Sonexay Siphandone recently invited Vietnam Rubber Group (VRG) to invest in processing rubber industrial products in Laos, the industry body has reported.

According to the VRG’s statement, the Lao leader issued the invitation at a 22 Feb meeting with leaders of the Vietnam rubber industry body – during an official visit Ho Chi Minh City.

At the meeting, VRG chairman Tran Cong Kha, thanked the PM for the support provided to the group member companies and their investment activities in Laos over recent years.

The VRG's development of rubber planting investment in Laos has to date “achieved many positive results,” said Tran Cong Kha.

Currently, noted the official, the rubber group has established six companies in Laos in five provinces: Champasak, Savanaket, Salavan, Bolykhamxay, Oudomxay.

Total registered capital for outward investment in projects in Laos is $255 million, while the total invested capital has so far reached $164 million, according to the VRG. 

The total rubber area in Laos is 26,644.66 hectares, added VRG, noting that it had invested in three rubber latex processing factories in Laos, with a total processing capacity of 34,000 tons/year.

Total rubber output exploited since the project was put into operation reached 344,150 tons, the group statement continued.

Total revenue achieved since the start of the projects is $555 million, mainly through exports, while total pre-tax profit has reached $75 million, it added,

The total number of employees at the projects is more than 5,500 people, of which nearly 4,800 are Lao workers, with an average income of $350 /month.

At the meeting, chairman Tran Cong Kha said that VRG had also surveyed a number of other localities in Laos and identified suitable rubber land areas.

He requested support for VRG's aims to further expand the rubber planting area in Laos, when investment in rubber planting is currently facing difficulties due to a government directive.

The Laos PM said “it would be very welcome if VRG invested in the production of rubber industrial products such as tires, in order to exploit the value of deep processing and create jobs for people,” said the VRG statement.

Image: VRG leaders presented souvenirs to Sonexay Siphandone, prime minister of Lao PDR. (Source: VRG)