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Vietnamese businesses collaborate with Attapeu province in Laos to combat poverty.

Báo Đắk NôngBáo Đắk Nông16/05/2023


Doanh nghiep Viet Nam cung tinh Attapeu cua Lao xoa doi giam ngheo hinh anh 1 Workers at Khanxay Company, part of Hoang Anh Gia Lai Group, in Attapeu province, transport bananas to the processing plant after harvesting. (Photo: Pham Kien/VNA)

Over the years, the consumption of organic food products worldwide has been on a strong upward trend and is becoming increasingly popular with consumers.

Recognizing this demand, many Vietnamese investors in Laos have been investing in the production of organic agricultural products.

This not only helps them find a good market for their products, but also provides a stable and relatively high income compared to the average income of the Lao people. In particular, it helps people in remote areas of Laos change their farming practices and habits, become familiar with high-tech agricultural production, thereby supporting long-term livelihood stability.

With over 1,000 hectares of high-tech organic banana plantations located in Xaysettha district, Attapeu province, Khanxay Agricultural Development Company Limited, a subsidiary of Hoang Anh Gia Lai Group, is producing clean agricultural products worth approximately over 30 million USD annually.

Speaking with a Vietnam News Agency (VNA) reporter in Laos, Mr. Nguyen Chi Thang, Director of Khanxay Agricultural Development Company Limited, said that in the context of increasing demand for organic products in the Chinese and global markets, and insufficient supply to meet demand, the Lao government is encouraging and creating the best possible conditions for businesses, including Vietnamese businesses, to invest in high-tech agriculture.

Meanwhile, in Laos, with its vast land and sparse population, the people have historically had little habit of using chemicals in agricultural production. There is also a large amount of clean, contiguous land available, making it very suitable for the development of organic farming.

Furthermore, investing in clean agriculture helps the company produce high-value organic products while protecting land, water resources, and the living environment of the people, in line with the Lao government's sustainable agricultural development policy.

According to Mr. Nguyen Chi Thang, the hot weather in Attapeu province allows for two banana harvests per year. With a planting density of approximately 2,500 banana trees per hectare on the current 1,200 hectares of banana plantations, Khanxay Agricultural Development Company Limited can export about 60,000 tons of organic bananas annually.

With an average price of around $450 per ton, banana exports alone bring the company nearly $27 million annually.

For the remaining approximately 40% of bananas that do not meet export standards, the company processes them into animal feed for export and uses them to feed cattle, free-range chickens, and pigs, generating an additional income of about $6 million per year.

Given the growing potential and demand of the market for organic products, Khanxay Agricultural Development Co., Ltd. is currently requesting an additional 500 hectares of land from the provincial government to expand its organic farming area.

The company's new direction has contributed to creating higher and more stable incomes for local workers.

The case of Keo Khounlakhone, from Samakhixay district, Attapeu province, is a typical example. She returned home after nine years of wandering, traveling almost 1,000km to the capital Vientiane to work as a factory worker in a French garment company, earning approximately 3 million kip per month.

When the COVID-19 pandemic broke out, the company closed down and she had to return to her hometown. However, Keo Khounlakhone could never have imagined that there were jobs in her hometown with an income equivalent to or even higher than in the capital.

Doanh nghiep Viet Nam cung tinh Attapeu cua Lao xoa doi giam ngheo hinh anh 2 Production activities at the Khanxay Company's organic banana processing plant, part of the Hoang Anh Gia Lai Group, in Attapeu province, Southern Laos. (Photo: Pham Kien/VNA)

Speaking to a VNA reporter, Ms. Keo said that during her nine years in Vientiane, she only dared to return home occasionally due to the long distance and high costs.

Now, having returned to her hometown to work at the banana processing factory of Khanxay Agricultural Development Co., Ltd., she enjoys both a high income and the opportunity to be close to her family.

She confided, "Working here is great; it's close to home, and the salary is over 3 million kip per month, just like working for the French company in Vientiane. In addition, the Vietnamese company provides food and rice monthly for the workers. I'm very happy."

Having spent his entire life working in the fields and on the farms, toiling year-round with unstable income and a life of hardship, Mr. Xong Xayavong from Xekamane district feels incredibly happy because since starting work at the company, with the average income he has, he not only covers his own living expenses but also has money to help his family.

Mr. Xong Xayavong said that after working for the company for more than a year, his life has improved significantly and he now only wishes to work for the company long-term, because in addition to salary, the Vietnamese company's leaders also provide rice and food monthly, offer accommodation for families, and are very concerned about the lives of the workers.

Similarly to Mr. Xong Xayavong, Mr. and Mrs. Sai Vanouvong in Hatxan village, Xaysettha district, also previously only knew how to cultivate fields, and their lives were very difficult.

Since working for Khanxay Agricultural Development Limited, with a combined income of over 6 million kip per month for the couple, their family's life has changed dramatically.

Mr. Sai confided: “Before, life in the village was just farming, which was very difficult. Working here is very enjoyable and reassuring. The Vietnamese company's leadership is very good. Our income is much higher than when we worked in the village.”

Having previously worked as a freelance construction worker, moving from place to place with and without work, Keo Kittixay from Khong district, Champasak province (about 300km from Xaysettha district, Attapeu province) expressed that since joining Khanxay Agricultural Development Co., Ltd. as a banana harvester, he has had a stable job, been provided accommodation for his family, and earned a steady income of 3.5 million to 5 million kip per month. Therefore, he is very happy and wants to stay with the company long-term.

According to Director Nguyen Chi Thang, the company currently provides stable employment for approximately 900 local workers with an average income of 3-5 million kip.

In addition to policies supporting food, accommodation, and transportation, the company also provides free medical treatment for cases of illness or work-related accidents.

Patients with mild symptoms will be treated at Attapeu Hospital, also sponsored by Hoang Anh Gia Lai Group, while those with severe symptoms will be transferred to Hoang Anh Gia Lai Hospital in Gia Lai province. This is also why many local workers are eager to work long-term with the company.

Speaking with reporters from the Vietnam News Agency (VNA), Mr. Thanousay Bansalth, Deputy Governor of Attapeu province, highly appreciated the effectiveness of Vietnamese investment projects in the province, especially high-tech agricultural projects.

He emphasized that these projects not only help people change their farming habits and make significant contributions to creating stable income and jobs for the people, but also produce many export-quality products for the province and for Laos.

Commenting on this issue, the Lao Minister of Planning and Investment, Mr. Khamjane Vongphosi, said that in recent years, Vietnam has supported Laos in researching and developing agricultural development policies, promoting cooperation and investment in high-tech agriculture to produce clean and sustainable agricultural products to meet domestic and export needs, including the mixed agricultural development project of Hoang Anh Attapeu Company, the cattle farming project in Xiengkhuang province, and many other projects, which have yielded very good results….

The aforementioned projects are not only of great socio-economic and political significance, but also contribute significantly to poverty reduction efforts among the ethnic groups of Laos.

Pham Kien-Ba Thanh (VNA/Vietnam+)



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