Laos sees surge in exports, Q1 trade surplus
Laos sees surge in exports, Q1 trade surplus
The value of goods exported and imported in the first three months of this year (Q1) earned Laos a trade surplus of US$95 million, the National Assembly (NA) has reported.
The value of exports during Q1 was US$1.21 trillion or 27.2 percent of the target for the year, while imports were valued at almost US$1.12 trillion, Minister of Planning and Investment Dr Souphanh Keomixay told the National Assembly’s ongoing ordinary session this week.
Last year, the government predicted the value of exports and imports to register a trade deficit of about US$1.56 trillion but in fact a trade surplus of about US$308 million was recorded, Dr Souphanh reported.
The value of exports reached US$4.52 trillion, 22.2 percent more than targeted in the plan approved by the NA, while the value of imports reached US$4.2 trillion or 80 percent of the target.
Dr Souphanh explained that the higher value of exports was largely due to greater sales of electricity and increased output in the processing industry in Special Economic Zones. Meanwhile the value of imports, such as high-cost motors, vehicles and electrical equipment decreased, while the price of petrol also dropped.
The value of imports also declined as several large industrial plants became operational and began supplying products for the domestic market.
Laos has suffered a trade deficit for many years, so the welcome news of a trade surplus this year should help to grow the economy and give the government much-needed extra revenue. Ultimately there should be a trickle-down effect and the general population should start to benefit, thereby alleviating poverty in line with government targets.
Laos exports to and imports from many countries around the world and has signed a Trade and Investment Framework Agreement with countries in Asia, Europe and the Americas.
But while the trade value between Laos and Asean countries is increasing, the value of trade between Laos, Europe and America is decreasing.
Large quantities of goods are exported to and imported from neighbouring countries, especially Thailand and Vietnam, along the Mekong River. These countries remain Laos’ top trading partners within Asean.
Laos could benefit further from the export of more agricultural products, an independent economics and business advisor, Dr Mana Southichack, said.
He advised the government to encourage more investment in this field, saying most farmers are still using basic methods of production.
Most farmers also have limited skills in terms of turning out quality products on a large scale and lack marketing experience, Dr Mana said.
