The Lao division of the Japanese company Tsumura will invest about 49.3 billion kip (US$ 6 million) in a medicinal herb plantation in Saravan province, with a land concession agreement signed in Vientiane on Tuesday. The company agreed on the first installment of about 14.8 billion kip (US$ 1.8 million) with the government in February. The government has agreed to provide two plots of land in Laongam district’s Phonhin and Borkhem village, measuring 156 hectares and 1.400 square metres respectively, under a 30-year concession agreement. The agreement was signed between the company’s general manager, Mr Tsuyoshi Iwasawa and Deputy Minister of the Prime Minister’s Office and National Land Management Authority Deputy Head, Dr Akhom Tounalom. The company has so far cleared more than 60 hectares of land on which they are already growing medicinal plants. Plans to expand the concession to a further 844 hectares are currently awaiting government approval. A memorandum of understanding for a survey of land conditions was signed in November 2008 and the government approved the establishment of the company’s Lao division this year. Lao Tsumara is the first company to grow medicinal plants in Laos for export to Japan. Last year Tsumura Company in Japan made about US$ 1 billion in sales and expects even higher earning next year due to increased demand and a better supply of raw materials.
Source: Vientiane Times
