Scoping Mission for Import and Export Procedures to Savannakhet, Day 1, Visit the SunPaper Factory in Xepon District, Savannakhet


March 29, 2022

  • MOIC/DIMEX raised the importance of introducing systems like Lao National Single Window (LNSW) to support companies like SunPaper with the efficiency of import/export procedures
  • MOIC/DIMEX suggested testing LNSW and due diligence criteria for TLAS with SunPaper as a pilot factory as they both import (Thailand, Vietnam) and export (China, Indonesia) – SunPaper’s COO agreed to participate in the testing
  • 70% of raw materials is imported material, of which ca. 30% Acacia species from Vietnam and 70 % of Eucalyptus species from Thailand both as chip wood.
  • SunPaper is domestically purchasing from SilvaCarbon/Stora Enso, a smallholder Eucalyptus plantation. In addition, SunPaper also had taken over the Eucalyptus plantation of Bela Lao Plantation, and 3,822 hectares of their own new-planted Eucalyptus.
  • To ensure the quality of seedling that is going to plant in the new areas, SunPaper has set up their nursery with a capacity of 20 billion seedlings per year with tissue technology.
  • COO mentioned that Laos is losing benefit as supply of raw material to SunPaper canot be guaranteed even the factory is in Laos, import at higher prices are currently required. Plantation in Laos would be a great business even for the smallholder plantation.
  • However, securing the raw materials feeding into their factory is still challenging in terms of price increases and difficulties to find timber suppliers.
  • SunPaper will share the internal management system of timber input and output to MOIC/DIMEX for information as well as for DIMEX to learn how the critical control points have been set up