1. ສ້ າງເງືື່ ອນໄຂໃຫ້ ແກື່ ການລົ ງທື ນໃນຂະແໜງອຸ ດສະຫະ
ກາໂຮງງານແປຮູ ບໄມ້ ປື່ ອງ ທີື່ ມີ ຢູື່ ໃຫ້ ເຂ້ ມແຂງ
ກອງປະຊຸ ມປຶ ກສາຫາລື
By:
Phetsoulaphonh N. Choulatida,
SNV-Strategy Development Advisor
14 February 2012
Multi-stakeholder Consultation Workshop
on Bamboo Business Climate
Creating Enabling Bamboo investment
Environment & Strengthening existing bamboo
factories in Houaphanh
2. 2Multi-stakeholder Consultation Workshop
Overall
• Houaphanh province located in the North-East of Lao PDR
• 16,500 square kilometres of land area
• Population of 285,766 people
• 76% of land area covered by forest
• Bamboo forests cover more than 500,000 hectares
• More over 20 bamboo species are mixed growth naturally
• The bamboo is classified as one item of NTFPs
• A large potential of becoming a green gold of rural incomes
• Lao economic reforms adopted in 1988 improves investment climate
• Decree No.73/PO of 2004 promotes foreign investment directly in any
business sectors in Lao PDR
• Lao economic is heavily dependent on foreign investment
Consequently, the bamboo is rarely invested and it has limited growth.
3. 3Multi-stakeholder Consultation Workshop
Bamboo industrial development sector in Houaphanh
Factory
name
Type of
Business
% of
business
holding
Location Value chain
Type of
bamboo
Contact
details
Mr.
Vongthone
LeXuanTeng
bamboo
processing
company
Combination
of
Vietnamese
and Lao
capital
Ban Phoun
Kang in
ViengXay
Pre-
processing
bamboo
strips and
rough cut
nan
Mai Kuan,
Mai Hia
+856(030)
5161347
+856(020)
98364009
Mr.
LeMinhChau
LeMinhChau
bamboo
processing
conpany
100% owned
by
Vietnamese
Ban Deuy in
ViengXay
Bamboo
strips, chop
stick and
rough cut
nan
Mai Kuan,
MaiLouang,
Mai Hia
+856(020)
23484603
Mr. Teng Souphaphone
bamboo
processing
co.,Ltd
Combination
of
Vietnamese
and Lao
capital
Ban VangHai
in ViengXay
Bamboo
strips, chop
stick and
laminated
panels
Mai Kuan,
Mai Hia
+856(064)
312315
+856(020)
55665017
Mr. Long Sobbao paper
pulp factory
Co.,Ltd
100% owned
by
Vietnamese
Ban
MuangHom
in Sobbao
Paper pulp Any type of
bamboo
+84 931
204 674
Note:
• Paper pulp factory started operation in 2007 and closed in 2009
• Teng-Souphaphone bamboo factory started operation in 2008 and closed 2009
• LeMinhChau and Vongthone factories started their bamboo business since 2009
and 2010 respectively.
4. 4Multi-stakeholder Consultation Workshop
Vongthone factory
(Operating)
LeMinhChau factory
(Operating)
Teng-Souphaphone factory
(Closed/re-operating)
Bamboo Suppliers
Six villages of Phoun Neua, PhounKang,
Natarn, Ban Chad, Ban Heow, and
PhounSanh
But PongXang village(surveying)
Productivity
1,200 Tons/year of rough cut nan
Job creation
having 70 workers
Bamboo Suppliers
Ban Kian, Ban Dan, Ban Deuy, Ban
Soi+DonKhoun, Ban Khoun, and NaHor
villages
Productivity
640 Tons/year of rough cut nan
Job creation
having 100 workers
Bamboo Suppliers
Four village clusters namely
MuangPhanh, MuangPua, Tong and
Sonephet.
Productivity
Chop-sticks: 100 Tons/month
Bamboo strips: 30 Tons/month
Laminated bb panels: 50 Tons/month
Job creation
want 50 workers (ethnic minority)
5. 5Multi-stakeholder Consultation Workshop
Bamboo harvesting to factories
Bamboo harvesting group
12 villages in ViengXay district
4 villages in Sobbao district
Bamboo harvesting season
There are 3 batches: January to
March, August to September;
November to December
closed season from 31 May to 31
October as a Prime Ministers Orders
(October 15th - 2001)
Farmer’s capability
Average 200 kg or 29
culms/day/person
(at least 2 persons/HH)
One culm is averaged 10 m length
= 7 kg of rough cut nan
Price scheme payment Services
Vongthone factory:
180 kip/kg of rough cut nan for
constructing new road to the forest
200-220 kip/kg for repairing road
250 kip/kg for existing main road.
LeMinhChau factory:
170 kip/kg-180 kip/kg for
constructing new road to the forest
200-250 kip/kg for repairing road
300 kip/kg for buying bamboo at
factory gate plus 30,000 kip/Ton for
gasoline as premium price introduce
to truck owner
Factory’s policy
Factory provides tool (knife and
saw)
5 LKIP/kg compensates for
administrative work of village leader
30,000 LKIP/T
pays for loading and unloading
Benefit to government
45 LKIP/kg pays for quota
permission
expenditures of committees occur
during inspection
5-10% of export tax
7. 7Multi-stakeholder Consultation Workshop
The crisis of factory (Vongthone & HiaHane)
Initially HiaHane ordered purchase rough cut nan 48 cm upward
Second order purchase was 65 cm upward (unable to supply for HiaHane)
One culm is 10 m length, if ordered 65 cm upward uses luxuriously materials
Bamboo price is declining from Thailand, HiaHane cannot buy from BounChanh at 6,180
LKIP/kg or 14 Bath/kg since Bounchanh bought 5,000 LKIP/kg from Vongthone. Hence,
Vongthone sold out to Vietnam at 17,000 Dong/kg or 6,400 LKIP/kg
8. 8Multi-stakeholder Consultation Workshop
Enabling Vongthone-LeXuanTeng factory environment
Strategy To his factory To government To community To project
Option1
Continuingly work with
Mr. BounChanh-
HiaHane if Rough cut
nan accept from 48 cm
upward like contract
before (be fair on price
and equally share
benefit)
Export tax
exemption
Quota system is
simplified and
fast
Miscellaneous
levies are absent
gradually or
apply one stop
shop
Facilitate to
solve conflicts
Harvesting
group should be
formalized
Price information
will update
monthly
Schedule
themselves to
cut culms after
rice farming
activity
Manage bamboo
forest and divide
to each
household
Aware economic
calculation to
villagers
Set up
harvesting group
(committee,
regulation, and
saving, etc)
Facilitate
contract farming
Option2
Vongthone-
LeXuanTeng work
independently whole
value chain
Option3
Still connect with Mr.
BounChanh-HiaHane
for Thailand market
9. 9Multi-stakeholder Consultation Workshop
Enabling HiaHane’s Business environment
Strategy To his shared-holder To government To project
Option1
Act as trader to buy semi
and final products from
Houphanh bamboo factory
No ad-hoc and tariff, it should
be applied one stop shop
(preferable)
• Push one stop shop policy
operation and make it
applicable for bamboo
Option2
Buy Vongthone-
LeXuanTeng factory for 20
years
Government will appoints 7
villages of Phoun Neua,
PhounKang, Natarn,
BanChad, BanHeow,
PhounSanh and BanPongXang
• Manage bamboo forest and
divide to each household
• Set up harvesting group
Option3
Rent/buy Teng-
Souphaphone factory but
not co-managerial system
any more
Four villages clusters of
VangHai, MuangPan,
MuangPua, Tong and
Sonephet will be prioritized
• Manage bamboo forest and
divide to each household
• Set up harvesting group
Option4
Move facilities to
Xanakham district,
Vientiane province to install
with 5 factories in
Xanakham
Identify villages in Xanakham
where is belonging to each
factory
• Manage bamboo forest and
divide to each household
• Set up harvesting group
10. 10Multi-stakeholder Consultation Workshop
Enabling Teng-Souphaphone factory environment
on supportive policies
Strategy To government To community To project
Option1
Grant him 5
hectares of
bamboo forest
land concession
per village
• Identify bamboo area for
each household who register
for harvesting group
member
• Village tax should collect
from household who access
bamboo forest area for
village saving fund
• Divide family labour cutting
culms continuingly to
factory
• Rotate household in each
month cutting bamboo for
factory regularly
• Set up village collector
• Coordinate with
government to facilitate
factory
• Formalise harvesting
group to supply bamboo
rough nan to factory
• Mobilize communities
cutting Maximum 10
months a year
• Educate community
having commitment and
saving fund
• Economic benefit return
should be computed and
aware to community
Option2
Allow factory
import
Vietnamese
labours 50-100
people with no tax
salary
Option3
Allocate bamboo
forest area to
each household
for managing
bamboo forest
11. 11Multi-stakeholder Consultation Workshop
Constraints
The key constraint of the bamboo sector in Houaphanh province is under-
commercialization.
Villagers Traders
• Villager is busy during farming
period March – June and August –
November because the main
constraint is competition with other
farming activities
• Trader introduces low price
• Villager is not initiative, waiting
others success than follow
• Villagers have low bargaining
capacity
• Bamboo is lower income comparing
with other crops
• Short-term income
• Villager does not rely on contract
• There is insufficient raw materials
supplying to factory
• Factory operates full capacity less than
four months a year because villagers are
available in December, February and July.
During this period of time they can cut
bamboo stems feeding factories
• Lao worker is lower quality and not
professional one
• Do not have permanent workers
• Quota permit is time consuming
• Complexity of inspection procedure is
costly which lead to higher cost of
production and raw materials
• Investors are not sure about investment
policy, it does not support seriously
12. 12Multi-stakeholder Consultation Workshop
Key interventions
• Forest management should be
prioritized at villages belongs to
factories and allocate bamboo
forest area to each household to
harvest and maintain sustainably
by themselves
• Harvesting group has to
formulate in order to rotate
family labour cutting bamboo
culms to factories continuingly
• Establish bamboo saving by
collect tax fees from household
who have been allocated bamboo
• Provide related information about
short and long term benefit from
bamboo
• Strengthen villagers on
negotiation skills
• The factory could have a field
animator to mobilise communities
cutting bamboo
• If possible, village assembler
could be formulated voluntary by
local people with clear role and
equally share benefit
• In long term, bamboo plantation
could be started from now at
factory to avoid shortage of raw
materials. Since government
shifts and empower private sector
leads extension work
• Build trust between traders and
villagers through good
partnership
• Advocate traders be honest on
pricing scheme development with
beneficiaries
• Visit Vietnamese bamboo sector for
experience exchange
• Identify role to whom will be a
watchdog to follow up and support
bamboo enterprise seriously
• Review policies that can be
applicable and develop policy from
the gaps for real use
• Develop bamboo harvesting
guideline for community and factory
• reduce quota levy in order to
increase price for farmer
• Perhaps, government could consider
the bamboo as a commercial item
independently excluding from NTFPs
• One Stop Shop is an initiative policy
to assist new emergence of small
enterprise for increasing incentive to
investors and traders
To village level To enterprise side To government
13. 13Multi-stakeholder Consultation Workshop
This report looks at 7 parameters
• Bamboo natural resources
• Technology
• Market accessibility
• Management
• Governance
• Policy
• Finance and infrastructure
