Due to a high demand for beef in Vietnam, Vietnamese authorities have put forth a request for Laos to supply them with up to 400 cattle per day.
However, with the already insufficient cattle supply in Vientiane inadequately providing the domestic market, requiring cattle being brought from other provinces like Saravan and Attapeu, Vientiane authorities have requested more time in supplying the livestock to Vietnam.
Vientiane alone needs more than 500 cattle daily to supply its slaughterhouses, while local cattle farms have only been able to satisfy 10 percent of the market’s consumption.
Since the supply can’t match the market’s demand, beef prices in Vientiane have hit a high of 70,000-75,000 kip a kg, while pork is only around 3,500 kip a kg.
The Vientiane Cattle Breeding and Entrepreneurs Association intends on supplying both domestic and neighboring markets by importing 2,000 cows from Australia to breed in Vientiane.
Though the Association possesses the technical skill, staffing, land and natural resources needed to begin, they must secure funds that will be directed towards purchasing the cows, seeds, grass and technological equipment before implementing the project.
Mr Viengsavanh Southivong, a member of the Association’s technical staff stated, “With the support from the government and the cooperation of local residents, we are allocating 1,500 hectares of farmland along the That Luang marsh channel to grow the grass needed for cattle breeding.”
The Association presently has 27 member cattle farms, and though that number is expected to increase soon, current members need to improve on technical breeding assistance in order to expand their businesses so that they can compete with neighboring entrepreneurs.
Since establishing diplomatic relations in 1962 and signing the Friendship and Cooperation Treaty in 1977, Laos and Vietnam remains a strong entity, with exports from Laos to Vietnam exceeding US$568.64 million in 2016. Meanwhile, the value of imports from Vietnam to Laos amounted to US$432.2 million.
Since 2005, the Ministry of Industry and Commerce of both countries have signed and agreed to a 50 percent tariff reduction based on reduced import tax and a resulting push for trade between the two countries.