The Ministry of Industry and Commerce has urged provincial authorities to provide greater cooperation in enforcing the government’s ban on the export of unprocessed timber, as more wood is needed to supply the domestic timber industry.

The ministry renewed the call for support at the annual conference of the industry and commerce sector held in Vientiane last week, attended by a number of provincial leaders.

As the industry modernises, some wood processing companies have invested in new technology and hired skilled workers from other countries. They have also entered into contracts to supply w ooden furniture and therefore need a reliable supply of raw materials, the ministry said in a statement at the meeting.

According to a report from the Ministry of Planning and Investment on the implementation of the first six months of the 2010/2011 socio-economic development plan, about six wood processing industries have set up in Laos based on the government’s ban on the export of unprocessed timber.

The Ministry of Industry and Commerce believes the development of the timber processing industry as a top foreign exchange earner will not be possible without cooperation from local authorities and other bodies.

The ministry said it needed close cooperation from provincial authorities, the Ministry of Agriculture and Forestry and the Ministry of Public Security to strictly enforce a prime ministerial decree banning the export of unprocessed timber. The ministry had learned that the export of this valuable natural resource was still continuing, despite the ban.

The continuing export of unprocessed timber is a severe obstacle to the government’s policy to develop and modernise the timber processing industry, which holds great potential.

The government introduced the ban on the export of unprocessed timber a few years ago, with the aim of securing a larger supply for domestic processing plants and adding more value to the natural resource prior to export.

Ending the supply of timber to other countries is also aimed at forcing foreign wood processors to move their production base to Laos where they can directly access the raw material.

The development of an international timber industry in Laos would not only create jobs but also enable local processors to learn new skills and technologies, enabling more sustainable use of the country’s abundant wood supply.

The Ministry of Industry and Commerce will continue to support potential wood processing companies under a pilot project to modernise the industry.

In recent years, industry and commerce officials have worked to improve standards in wood processing factories nationwide.

Some 890 of 1,157 factories have been given permission to continue their operations following inspections. Other factories are in the process of improving their production methods towards the more efficient use of wood.