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Laos, Hungary join forces to boost agricultural exports
Publication Date : 26-08-2013
The Sahamit Development Corporation Company will team up with a Hungarian business group to produce agricultural goods for local markets and export.
A memorandum of understanding was signed in Vientiane on Friday between the President of the Sahamit Development Corporation Company, Khuanchai Siphakanlaya, and President of the Hungarian Aquaculture Association, Laszlo Varadi.
Under the agreement, the two sides will cooperate in the development of agriculture and aquaculture, the food industry, an integrated poultry industry, technical assistance for feed mills, and fisheries cooperation.
The signing of the MOU was witnessed by a member of the Board of Directors of Sahamit Development Corporation Company, Somphet Maopaseuth, and Chief Executive Officer of Master Good Ltd., Barany Laszlo, along with the Chief Executive Officer of Vitafort ZRT, Zoltan Kulik, and the Managing Director of Hoitsy and Rieger Co., Ltd., Gyorgy Hoitsy.
The signing ceremony was attended by Deputy Prime Minister Somsavat Lengsavad, Deputy Minister of Agriculture and Forestry, Dr Phouangparisak Pravongviengkham, Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong, other Lao government officials and Hungarian representatives.
Recognising the important role agriculture plays in providing the people of Laos with an income and improving living conditions, the Sahamit Development Corporation Company partnered with the Hungarian business group to develop agriculture in Laos.
Their goal is to bring the sector in line with international standards so that more products can be exported to Southeast Asian countries and the region.
The parties involved will develop agricultural products so that Laos has export markets when the Asean Economic Community comes into effect in 2015. The extra income earned will also contribute to Laos graduating from Least Developed Country status in 2020 as targeted, said Khuanchai.
The first project will focus on livestock feeds management in Nongtaeng village in Sikhottabong district, Vientiane, and in Oudomxay and Luang Prabang provinces.
Development of an integrated poultry industry is expected to require initial funding of about 16 million euros. This will be used to obtain raw materials, provide storage, build a feed mill, acquire parent stock, build a hatchery, and set up broiler production and a slaughterhouse.
The project will also include a salmon breeding study in Oudomxay province.
The two parties will also identify suitable areas for the cultivation of maize, cassava and soybeans to supply the feed factory. The two countries' cooperation provides a solid framework for the development of poultry production, feed manufacture and aquaculture in Laos for the mutual benefit of the Lao and Hungarian partners, said Varadi.
Laos is considered an important partner for Hungary in the Asean region and a gateway to the large markets available in Asia, he added.
He was confident that, based on longstanding collaboration, mutual understanding and friendship combined with hard work, the two sides would see considerable business in the coming years.
Barany said the plan is not only to provide food for Laos but also for sale and export.
Hungary and Master Good Ltd. stand ready to help Laos in this endeavour and will back the project throughout its duration, he promised.