18 September 2015, Vientianetimes news - The government has prohibited the export of logs and instructed that timbers must be processed in Laos before exporting to foreign countries.
Previously, the government banned the export of logs but exceptions were allowed when the government approved the export of the logs.
The Government Office issued the new announcement No 1360 dated August 8, 2015 that imposes the prohibition. The prohibition means the government will not approve any kind of request for log exports, a senior government official has said.
The prohibition was approved at the request of the Import-Export Department under the Ministry of Industry and Commerce. The Import-Export Department declined to give comment over the issue.
Issuing the previous prohibition, the government said the ban was to add value to wooden products by processing the timbers before exporting them, while supplying more logs to fulfill increasing demand for raw materials to local wood processing and furniture plants. Some domestic furniture business operators have already suffered from the shortage of timber.
The Lao Furniture Association told Vientiane Times in recent months that some furniture businesses around the country have given up their operations after being unable to source enough wood to fulfill orders.
In light of the issue, the association has asked for 30 percent of the government's annual wood quota to sustain their business but this has not been approved yet, association official Mr Bounpheng Phengsisavath said.
Most of the furniture makers that are still operating, especially those in Vientiane, are having to buy wood from timber yards instead of using wood supplied und er government-allocated quotas.
He said the shortage is creating problems for the association as it tries to expand the market b ecause of concerns about product supply. The demand for wooden furniture is high in both the Lao and foreign markets but supply is limited. There is a strong Chinese market demand for Lao furniture if the association is a ble supply products in sufficient quantities.
2011 data from the Ministry of Industry and Commerce showed that there were 1,175 sawmills, wooden furniture factories and wood processing plants across the country.
According to recent reports, information regarding the amount of wood exported is not available as the government has been unable to collect the information from local authorities.
Reports have emerged that high demand for timber and wooden products has resulted in widespread illegal logging and the illegal operation of sawmills.
Despite the fact the government has taken action to regulate the illegal sawmills and wood processing plants, the issue remains in existence.
The illegal trade in timber topped all cases uncovered in 2014 by the economic police or police in charge of economic-case affairs, according to a report from the economic police.
In 2014, the economic police registered 391 illegal cases nationwide including 169 that involved the illegal trade of timber.
