The Chinese company De Xan Rubber has been authorised by Luang Namtha Province to build a rubber processing factory worth more than 30 billion kip (over US$3.7 million) in the northern province following the signing of an agreement with local authorities.
The document authorising the Chinese company to invest in the rubber industry was signed on Jan 10 between Deputy Director General of the Provincial Planning and Investment Department of Luang Namtha Mr Khonethong Laeungkhamma, and Director of De Shan Rubber Mr De Shan, in the presence of Head of the Provincial Administration Office of Luang Namtha Mr Khamlai Sipaserth and relevant officials.
The factory will be located in Sompan village, Long district, Luang Namtha Province.
Over recent years, following decreasing prices of rubber latex in export markets, many rubber farmers in northern provinces including Luang Namtha have cut down their growing rubber trees. Some have returned to farming fruit trees, vegetables and bananas because they claim that these agricultural products are in high market demand and require a shorter farming duration.
Source: Lao News Agency