Lao cassava flour makes way to China

VIENTIANE,OCT.29 (KPL) - The Nanning Guangxi Fei Luo Shi Trading Company, in Nanning, Guangxi province of China, has agreed to sign a contract for the purchase of cassava flour from the Lao leading cassava flour producing company, “the Lao-Indochina Group Ltd”.
Under the contract, the Fei Luo Shi Trading Company has agreed to purchase 25 tonnes, valued at US$13 million, from the Lao-Indochina Group Ltd, in 2011.
The signatories to the document were Mr Sengmaly Sengbatthana, President of the Lao-Indochina Group Ltd., and Ms. Liang Xue Zhen, President of the Nanning Guangxi Fei Luo Shi Trading Company.
The contract was signed in a ceremony held at the 7th China ASEAN Expo 2010, Nanning, Guangxi province, on 20 October, in the presence of Mr Thongmy Phomvisay, Deputy Minister of Planning and Investment, and both sides’ officials from Laos and China.
The cassava flour plant of the Lao-Indochina Group Ltd., the first ever set up in 2007, has a daily production capacity of 250-300 tonnes.
China is the main market of the Lao-Indochina Group Ltd, with the Nanning Guangxi Fei Luo Shi Trading Company as the major customer.
In 2009, the Nanning Guangxi Fei Luo Shi Trading Company bought 20 tonnes of cassava flour and increased the volume of purchase to 25 tonnes in 2010.
“This transaction not only benefits our company but Lao cassava growers as well,” said Mr Sengmaly.