Expanding Rubber Coverage in Laos and Cambodia

The policy to develop 100,000 hectares of rubber trees in Cambodia has been passed by the two governments of Cambodia and Vietnam. According to the policy, Vietnam Rubber Group (VRG) is the main force to get the policy implemented. Up to now, there have been four units directly belonging to the Group, including Phu Rieng-Kratie, Tan Bien-Kampong Thom, Dong Phu –Kratie and Dong Nai-Kratie, which have been granted with licences. The scale of projects is 20,000 hectares of land. The Group is continuing its work so that Cambodia will grant a further 20,000 hectares of land to ensure that each project will be provided with 10,000 hectares of land. To get the projects implemented according to roadmap and to ensure effectiveness, the Group has established a steering committee for the development of rubber trees in Cambodia. Furthermore, the Group has set up a representative office in Phnom Penh. The office is responsible for keeping an eye on the development of rubber trees in Cambodia and helping members the group complete procedures according to Cambodia’s laws, etc.

 

In 2007, Phu Rieng-Kratie Rubber Joint Stock (PRK) and Tan Bien-Kompong Thom got the first 270 hectares of rubber trees planted in Cambodia. From achieved results in 2007, in the year of 2008, PRK strives for reclaiming soil for planting 1,500 hectares of rubber trees and Tan Bien-Kompong Thom, 1,000 hectares. The company also aims to establish a breeding garden, etc. Dong Phu-Kratie also covers 30 hectares and targets at 60 hectares in 2008, etc. Dak Lak Rubber Company has received a licence to make investment in 10,000 hectares of rubber trees in Cambodia.

 

Current largest obstacle of companies in Cambodia is the import of equipment, materials and fertilizer. Despite achieving courageous results, investors conducting projects in Cambodia still run into heaps of difficulties. Cambodian labour with obsolete working habits results in low productivity. In addition, though reclaiming soil and planting new rubber trees are seasonal, these activities are heavily influenced by following series of procedures.

 

Apart from projects which are already granted with licences, VRG continues to seek appropriate land fund for new projects. The remaining area of 100,000 hectares will get implemented in the years to come. The Group will invite such large partners as Song Da General Corporation, Vinachem or Vietnam Cement Corporation, etc. to take part in this project.

 

Land, climate and farming habits of Southern Laos have lots of familiarities with those of Vietnam’s Central Highlands. The area is, therefore, very suitable for the development of rubber trees. According to the economic co-operative programme between the governments of Laos and Vietnam, Vietnam will make investment in planting 100,000 hectares of rubber trees in Laos. Currently, there are many enterprises in Dak Lak, Binh Duong, Binh Dinh, Gia Lai, Ho Chi Minh City and Quang Tri, etc. to have made such investments in Laos.

 

Viet-Lao Rubber Joint Stock Company got granted with a licence to operate since 18 January 2005 by Laos’ Planning and Investment Committee. The company aims at planting, taking care of and exploiting 10,000 hectares of rubber trees. It also gets a factory which processes rubber latex with a designed capacity of 18,000 tonnes/year built. Within two years of 2005 and 2006, the company got 7,400 hectares of rubber trees planted. In 2008, nearly 1,100 hectares of trees have been newly planted, bringing the newly planting area to 10,000 hectares. 

 

Dak Lak Rubber Company has planted 8,000 hectares of rubber trees in Laos so far. In 2009, the company will prepare to plant a further 1,500 hectares. With this pace, the project to plant industrial trees in Southern Laos will get completed one year ahead of schedule.

 

Dau Tieng – Viet Lao Rubber Joint Stock Company, a joint venture between Dau Tieng Rubber Company and Binh Duong province started planting rubber trees in Laos in 2007. The company plans to cover 4,000 hectares in 2008, and 10,000 hectares by the beginning of 2009.

 

Also in early 2007, Laos government has licenced Quasa-Geruco Company to plant 8,650 hectares of rubber trees and establish a processing factory in Savanakhet province. From now to 2009, Quasa-Geruco will cover a further 4,900 hectares of rubber trees in Savanakhet. After 2010, the company will get some 8,858 hectares of rubber trees planted in Laos.

 

Hoang Anh Quang Minh Joint Stock Company was established in 2007 with two big shareholders namely Hoang Anh Gia Lai Company and Chu Pah Rubber Company. The Joint Stock aims at developing rubber trees in the Central Highlands and Laos.