Govt targets 8.3 percent economic growth next fiscal year
Govt targets 8.3 percent economic growth next fiscal year
The government is speeding up development of the agriculture and industry sectors, hoping these will be the mainstay of economic growth next fiscal year.
Minister of Planning and Investment Mr Somdy Duangdy told the National Assembly session on Wednesday the government was speeding up the development of the agriculture sector, aiming for a 3.3 increase in output. This would contribute to efforts to secure GDP growth of 8.3 percent next fiscal year.
The government is also accelerating growth in industry, aiming for a 15.5 increase in output next year.
Development in both these sectors has been slow this year due to the effects of flooding last year, which forced the government to revise its GDP growth target from 8.3 percent to 8 percent this fiscal year.
Mr Somdy said that to secure 8.3 percent economic growth in the next fiscal year, which begins in October, the government needs to mobilise investment funding of 26,800 billion kip (US$3.3 billion), accounting for 33.2 percent of GDP.
The government will contribute 2,600 billion kip (US$325 million), accounting for 9.7 percent of total planned investment funding. The government expects to mobilise Official Development Assistance of 6,200 billion kip (US$775 million), accounting for a further 23.1 percent.
It is envisaged that the private sector will contribute 14,300 billion kip (US$1.7 billion) accounting for 53.4 percent, and that banks will provide credit of 3,700 billion kip, accounting for 13.8 percent of the required investment funding.
Economists say the government will need to take serious action to improve the business climate after joining the WTO at the end of this year. This is necessary to attract domestic and foreign investment and boost GDP growth next fiscal year.
One of the main challenges the government faces is training a skilled workforce, which will be necessary to transform the natural-resource based economy into a knowledge-based economy in order to sustain development, they say.
The government has already increased the budget available for the education and health sectors.
Economists also say the government must improve its services. At present it is not easy to obtain a business licence, pay taxes or get a construction permit. Many business operators say they have to pay the officials concerned in order to make progress and get the help they need.
The government will give state officials a higher salary and additional living allowances in a bid to encourage them to be more attentive to their work.
vientiane times
