Laos raw wood exports continue
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Laos has a policy to add more value to Lao timber products before exporting them but it is not easy to put the policy into practice as most of the local wood processing firms do not want to change their ways.
According to a World Bank survey, most of the wood-processing firms in Laos have very strong links with the wood processing industry in a neighbouring country, which has strong interest in using Laos as a source of raw materials.
In most cases, companies from neighbouring countries provide the necessary working capital for Lao firms to secure log quotas, as was highlighted in the Laos’ Investment Climate Assessment for 2011.
The government announced several years ago that it would stop the export of unprocessed timber, aiming to extract more value from natural resources before exporting them. However, enforcement of the policy is ineffective as unprocessed product continues to leave the country in substantial quantities.
About US$200 million worth of Lao timber products are exported annually, of which less than five million are secondary processed timber products.
