VIENTIANE: Authorities in Attapeu province have awarded concessions to three Lao companies, enabling them to grow durian on hundreds of hectares of land as part of the government’s broader effort to boost the cultivation of fruit on a commercial basis.
The move could support Laos’ ambition to become a supplier of durian to neighbouring China, where investors are seeking to expand durian plantations in Laos so that more fruit can be grown and sold to China to help meet spiralling demand.
The concession agreements were signed on April 7 at the Attapeu provincial Planning and Investment Department. The province’s Deputy Governor, Tanouxay Banxalith, witnessed the signing of the agreements by representatives of the department and the three companies.
Under the 30-year concessions, each company has been awarded 100 hectares of land. The bulk of the area to be used for durian cultivation while wooded areas will be preserved.
Combined, more than 273 hectares of land have been made available for durian cultivation by the three companies, according to Lao National Radio.
Following the signing of the agreements, the companies are required to submit applications requesting investment licences and must fulfil other obligations in line with the relevant legislation, including the payment of taxes and other charges.
The project aligns with the province and government’s broader policy to encourage private sector involvement in forest preservation and agricultural production.
Durian plantations in Laos are rapidly expanding, driven primarily by Chinese investment and the increasing demand for the fruit in China.
Several Chinese businesses have expressed interest in growing the popular tropical fruit in Laos and shipping large quantities to China to meet the surge in demand there.
China accounts for 91 per cent of global durian consumption, with most of the fruit imported from Thailand.
But Chinese fruit growers are now looking to neighbouring Laos as a potential supplier of the crop. Last October, a group of companies from China met with members of the Lao National Chamber of Commerce and Industry and officials from the Ministry of Agriculture and Forestry and Ministry of Industry and Commerce to discuss the matter.
The Chinese group asked the Lao side to set up the Lao Durian Business Association, the Lao Durian Vocational Association, and a Lao durian research centre to oversee all the processes involved, from species selection to cultivation knowhow, quality control, pricing, and logistics.
The Lao side supported these proposals as being important steps on the road to enabling Laos to sell durian to China. The fruit is not currently on the list of 17 kinds of fruit and other agricultural produce authorised for export to China. - Vientiane Times/ANN
