LAOS: Vietnam pours millions in rubber tree investment in Laos

The Dac Lat Rubber Company Limited of Vietnam has decided to spend more than US$50 million on rubber tree plantation and construction of a rubber processing factory to produce latex for export, Lao news agency (KPL) reported.

Deputy Director of the Dac Lat Rubber Company Limited, Nguyen Ngoc Ngyen has disclosed that presently rubber trees have been planted on almost 9,000 hectares and the company will continue to expand more in the future.

Meanwhile, the construction of a rubber processing factory is now under way and expected to complete in mid-2011 and the export of latex sheets will come at the end of this year, he said.

The factory with production capacity of 6,000 tonnes per year is located in Champassak province.

In the future, the company plans to build two more factories in southern provinces of Laos, with a combined production capacity of 6,000-10,000 tonnes yearly.

Ngyen further stated that the assessment of Vietnam's Rubber Association has found that rubber was in high demand on the world market till 2015.

There were many reports from the World Rubber Associations unveiling that the consumption of rubber is approximately 5 kg per person. But the rubber supplying is only 2 kg per person, proving that the world market still demands a huge volume of rubber.

"This is a good opportunity for our company to expand the rubber tree plantation and build more factories," said Ngyen.

He added that the Dac Lat Rubber Company Limited would focus on export the sheets of latex to US, European and Western markets.

The company started its rubber tree plantation in Laos in 2005.(Syed Rashid Ali, Karachi, Pakistan)