This project is supporting the development of innovative wood-processing industries to enhance markets for planted timber resources within Lao PDR and Australia. 

The wood manufacturing industries in Lao PDR are in their infancy compared with those in neighbouring countries. There is already some 215,000 ha of planted teak, rubber, eucalyptus and acacia for which there are limited markets, but the wood processing sector has not yet adopted new processing technologies widely used in Vietnam and China. 

Research and development are needed to support the development of new processing capability and a range of Engineered Wood Products (EWPs) that can be produced from small-diameter timbers. Specific skills and knowledge are lacking on the processing of wood for appearance, structural and housing construction purposes and on enhancing termite and decay resistance in the timber products. Further research is needed on aspects of the timber value chain between the plantation and processing industry to ensure an efficient supply of wood resources and provide necessary information to support investment in new processing facilities. 

Expected outcomes

  • An improved policy, regulatory and administrative environment for appropriate plantation development, more efficient value chains and the expansion of an internationally competitive Laos PDR forest industry.
  • Improved knowledge on plantation timber resources together with more effective policy adn regulatory arrangements facilitates new investments in innovative wood processing facilities in Lao PDR.
  • The Lao PDR forest industry becoming larger, more diverse and profitable, and benefiting from production of EWPs for domestic markets.
  • Australian wood processing industry expanding through the production of innovative EWPs.
  • Improved livelihoods of plantation growers, and greater and more secure opportunities for employment in the plantation wood processing sector.
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