The initiative was inaugurated in Laos last week at a Memorandum of Agreement Signing Ceremony on Sale-Purchase of Rice between Myanmar’s ABA NARES Company and Laos’ Homxay Agriculture Export-Import and Services Sole Company in cooperation with Thailand’s Siam Golden Horse Company.

The agreement was signed by the Honorary President of Laos’ Homxay Agriculture Export-Import and Services Sole Company, Prof. Dr Xong Tong Chia; President of Homxay Agriculture Export-Import and Services Sole Company, Mr Homxay Boutviseth; President of Myanmar’s ABA NARES Company, Mr Kyaw Swar Soe; and President of Thailand’s Siam Golden Horse Company, Mr Nattapan Chaowanasiri.

The objective of the agreement is to help farmers in the three countries to earn more money from rice cultivation so they can improve their living standards in the years to come.

Under the agreement, Laos’ Homxay Agriculture Export-Import and Services Sole Company in cooperation with Thailand’s Siam Golden Horse Company will buy rice from Myanmar’s ABA NARES Company. This rice will then be sold to Japan, Vietnam and the Philippines.

The three companies have agreed to buy good quality rice from Myanmar totaling about 10 million tonnes over a period of eight years, starting from January 2020. It is estimated that the Lao and Thai companies will import about 980,000 tonnes of rice from Myanmar in the first six months, according to the target figure.

Prof. Dr Xong Tong Chia said the agreement was a new step in developing the economies and agriculture of Laos, Myanmar and Thailand. The agreement will encourage farmers in the three countries to produce good-quality rice for sale. Lao farmers in particular will have an opportunity for agricultural development.

“We will support Lao farmers around the country to produce rice and sell it to our company. We will bring agricultural technicians from Thailand and Europe to train farmers how to grow good quality rice in line with the companies’ requirements,” said Prof. Dr Xong Ton Chia.

In addition, it will be an initial step in expanding cooperation on trade in Asean and further afield. The cooperation will cover a variety of products including rice, food and vegetation.

The agreement between the three companies will not only expand private sector cooperation at a high level but also spur economic growth in Laos, Myanmar and Thailand as well as driving the Asean economy.

Additionally, cooperation is an important strategy for providing food security in countries that are affected by climate change. Private sector cooperation is supported by the government in the fields of trade, agriculture, and industry. This partnership also indicates the importance of expanding the private sector as an important business unit to gradually strengthen and expand economies.   

President of Myanmar’s ABA NARES Company, Mr Kyaw Swar Soe, said this was the first time his company had partnered with a Lao company in business.

“If Laos and Myanmar companies have good cooperation, I believe that we will lead the way in Asean in the sale and purchase of rice in the years to come,” he said. “I will do all I can to make a success of this business cooperation with Lao and Thai companies.”