Lao Prime Minister Sonexay Siphandone met with leaders of the Vietnam Rubber Group (VRG) in Ho Chi Minh City on February 22 (Photo: VOV)

Siphandone, who was in Ho Chi Minh City for a tripartite meeting with the Vietnamese and Cambodian Prime Ministers, appreciated Vietnamese firms’ investments in Laos, helping to boost local socio-economic development.

He welcomed VRG’s expansion plan, particularly in deep-processing rubber industries, and encouraged further investments in industrial and energy sectors to boost economic growth and employment in Laos.

He emphasized that VRG’s land expansion should align with local benefits, while suggesting a cooperative model to optimize land use for Lao citizens.

VRG chairman Tran Cong Kha thanked the government and people of Laos for their strong support to VRG’s operations. Currently, six VRG companies operate in Laos across the provinces of Champasak, Savanakhet, Salavan, Bolykhamxay, and Oudomxay, with a total registered investment of more than 254 million USD, of which 164 million USD has been disbursed.

VRG manages over 26,644 hectares of rubber plantations in Laos, with more than 23,000 hectares under exploitation. The group has established three rubber processing plants with a total capacity of 34,000 tons per year. Since the projects began, VRG has harvested more than 344,000 tons of rubber, generating over 554 million USD in revenue and nearly 75 million USD in pre-tax profits.

Total exports have exceeded 547 million USD, with tax contributions reaching 29 million USD, including 5.23 million USD in 2024 alone.

The six Vietnamese rubber firms employ over 5,500 workers, including 4,800 Lao nationals, with an average monthly income of 350 USD.

VRG has also invested 9 million USD in infrastructure and social welfare projects, including roads, schools, health centers, electricity, and clean water systems.

The VRG leader requested Lao government support to expand its rubber plantations, saying through field trips, VRG has identified suitable land in other Lao provinces. The group has outlined six investment fields, namely rubber plantation and processing, high-tech agriculture, wood processing, industrial rubber products, infrastructure investment, and renewable energy.

PM Siphandone stated that the Lao government would assign relevant ministries and agencies to study and consider VRG’s investment expansion in Laos.