Economic growth in Savannakhet remains high despite global slowdown
Economic growth in Savannakhet remains high despite global slowdown
The economy of Savannakhet province is projected to grow at 12.5 percent this year driven by both domestic and foreign investment, according to the provincial report on Tuesday.
The industrial sector is expected to increase by 17.2 percent; the agriculture sector is forecast to rise 7.35 percent and the service sector is to rise by 13.75 percent, generating income per capita of US$1,048.
Savannakhet Provincial Governor Dr Souphan Keomixay reported the progress of economic growth as well as development challenges to Prime Minister Thongsing Thammavong during his visit to the province yesterday.
The governor said although the province has been affected by the global economic slowdown, its economy continued to grow, particularly in the area of trade, investment and tourism.
Over the past 10 months of this financial year, the revenue of the province reached 757.2 billion kip, equal to 90 percent of the yearly plan and about a 25 percent increase compared to the same period last year.
Meanwhile, the value of exports grew to US$879.8 million, equaling 87.5 percent of the yearly plan and a 14.3 percent increase compared to last year.
Imports also rose, reaching US$373.2 million, about a 1.3 percent increase compared to last year. The province forecasts that imports in the whole year will reach about US$416.6 million.
So far, there are 142 projects worth US$1.6 billion being operated by foreign investors in Savannakhet province. Of this 13 projects worth US$47.8 million were approved during this financial year.
The commercial production of local people has been growing, triggered by strong market demand in Laos and overseas. Villagers always use new techniques to produce rice and other crops to improve the yield and respond to market demand.
The crops that villagers grow for commercial purposes include rice, sweet corn, banana, watermelon and sugarcane, among others.
The main challenges that delayed commercial production included water insufficiency, poor production techniques and a lack of good seeds. There are not enough technical experts to help farmers in dealing with these problems.
The industrial sector has been growing quite fast since the establishment of the Savan Seno Special Economic Zone in the province, attracting foreign investors to set up factories there for goods export to other countries.
In the service sector new hotels, trade centres and restaurants have been built in the province to facilitate tourism and transform Savannakhet from a transit province to a place where tourists want to visit and stay.
Dr Souphan said the province has also spent a lot of money on improving infrastructure in the town to create a livable environment for tourists.
Over the past 10 months of the year, the number of tourist arrivals in the province reached more than 607,000 people equal to 73.4 percent of the yearly plan.
vientiane times
