Laos and Vietnam have recently taken a significant step in boosting the rubber industry by signing a Memorandum of Understanding (MOU) aimed at elevating the quality of exported rubber. This MOU signifies a strong commitment from both nations to jointly develop the rubber industry in a sustainable and effective manner.
Challenges in the Laotian Rubber Market:
The Lao rubber industry plays a crucial role in Laos' list of major exported goods, with the year 2022 witnessing a milestone success of generating over 650 million USD from this sector. According to information from the Laos Rubber Association, the total area for rubber cultivation nationwide exceeds 300,000 hectares, indicating significant potential in this industry.
However, despite substantial cultivation areas and revenue from rubber, all of Laos' rubber products are currently exported as raw materials. Laos has yet to implement specific standards for rubber quality and lacks laboratories to test and certify the quality of its rubber products.
To address this issue, the Laos Rubber Association and the Vietnam Rubber Association have collaborated by signing the MOU. The goal of this MOU focuses on developing the rubber industry sustainably in both countries and enhancing the quality of exported products.
Enhanced Support and Development of Rubber in Laos:
Laos has experienced rapid development in the rubber tree industry from 2000 to 2010, and currently, there are approximately 300,000 hectares dedicated to rubber cultivation. Presently, 46% of these lands are managed by foreign companies under leasing agreements. However, only about 85% of the total rubber trees are ready for harvesting, indicating significant potential for further growth.
The primary export markets for Laotian rubber are China and Vietnam. Rubber has been identified as one of the four major projects by the Laos government in its Economic and Social Development Plan for the periods of 2016-2021 and the vision up to 2025-2030. Currently, rubber stands among the top 10 leading export commodities in Laos.
The workers of Vietnam Laos Rubber Company in Attapeu Province are tapping rubber latex
Conclusion:
The highlight of this agreement lies in sharing developmental experiences and supporting Vietnamese rubber businesses operating in Laos to produce sustainable rubber that meets standards. The MOU also emphasizes the necessity of increased support and attraction of rubber processing companies that adhere to standards, catering to export requirements for both Vietnam and other markets.
The collaboration between Laos and Vietnam through this MOU is not just a significant step but also opens up immense prospects for enhancing the value and quality of the rubber industry, contributing to the sustainable development of both nations.
Source: Vietstock
