Lao lubricants market to see double-digit growth
Thailand-based Siam Machinery Intertrade (SMI), a distributor of Shell Lubricants in Laos, expects double-digit growth for the Lao lubricants market this year.
SMI Deputy Managing Director Kittisak Sakulkoo said rising private investments and a growing vehicle market are expected to boost growth not only in lubricants consumption, but also in fuels consumption.
Last year, SMI supplied 3.5 million litres of lubricants in Laos, with 500,000 litres alone for mining and hydropower projects. This year, Sakulkoo expects sales to reach four million litres.
With the number of motorcycles growing rapidly in Laos, especially in the capital of Vientiane with more than 500,000 motorcycles on the road, SMI also expects to boost sales of motorcycle oils.
SMI also plans to expand operations in the northern provinces of Laos, including Xiangkhouang, Oudomxay and Luang Prabang.
Shell Thailand also supplies fuels in Laos, through PetroVietnam Oil Lao Co. Ltd., which is part of Vietnam’s PetroVietnam Oil Corporation. Currently, four companies are supplying fuel to the local market, including Lao State Fuel Company, PetroVietnam Oil Lao Co. Ltd., Thailand’s PTT and PetroTrade.