KPL) Two foreign companies have reached an agreement to develop agarwood products to international standards for export markets.
The agreement was signed on March 31 in Vientiane Capital between the Chairman of First Capital Laos, Mr Rex Wong, and the CEO of Brightz Agarwood Pte, Mr Caleb Lim.
The CEO of Chin Don Biotechology, Mr Chian Victor, and investors from Malaysia, Thailand and China witnessed the event.
“After few years of technical improvements in agarwood cultivation and inoculation, we are ready for the global market,” said Mr Rex Wong.
“This exclusive partnership brings forth funding and investment from overseas to develop agarwood in Laos with the most advanced and effective technical assistance and marketing for export,” Mr Wong added.
He said that the partnership also serves to provide coordination between the investors, the government and local farmers for their mutual benefit.
“We would like to promote agarwood products in Laos and its access to international market,” said Mr Sean Goh, CEO of First Capital.
“First Capital Laos (FCL) is an International Financing company headquartered in Thailand, with a strong presence in Asean. FCL is committed to green technology, forestry financing and environment projects. FCL’s vision is to build sustainable long term benefits for mankind and the environment, based on equitable sharing of resources and commitment for our next generations,” said Mr Goh.
“First Capital Laos agreed last week to an exclusive partnership with Brightz Agarwood Pte of Singapore in quality improvement and joint development of agarwood project in Laos, including the allocation of six million agarwood trees to kickstart phase 1 of the exclusive partnership in six months, with at least 1 million agarwood trees to produce premium Lao agarwood oil, positioning Lao oil competitively in the international market,” said Mr Sean.
“Some 10 years ago, millions of agarwood trees were planted in Laos but there was no improvement due to limited funding,” said Mr Caleb Lim.
“Growers became discouraged as the trees grew slowly with low quality yield, resulting in no sustainable market supply,” Mr Lim said.
Mr. Lim strongly believes that this project is important for the Lao agarwood industry’s improvement to international standards and will help increase growers’ incomes and contribute to Laos’ GDP.
He hopes that through the project, the improvement will also promote Laos as one of the agarwood exporting countries in the future, creating a reputation for Lao agarwood.
Over the years, Brightz Agarwood Pte has put in dedicated efforts and focus on the studies of technology and related equipment to be used to improve the extraction of oil from the agarwood trees in central Laos, especially in Borikhamxay and Vientiane provinces, as well as in Vientiane Capital. The implementation has seen good progress and real achievements.
Source: Lao News Agency