Economic progress review proves positive
Economic progress review proves positive
Laos' economy saw robust growth of between 7.8 and 8 percent per annum from 2009-2012 along with increasing interest from foreign investors, according to a recently published report.
The information was highlighted in the sixth annual report revealed by the Lao National Chamber of Commerce and Industry at a meeting in Vientiane yesterday.
Speaking at the meeting, Chamber President Mr Kissana Vongxay said the strengthening economic climate in Laos has been recognised by the international community, especially now that the country has become a member of the World Trade Organisation.
The Lao government introduced its economic reform policy in 1986 and has since adopted market-oriented policies to loosen government control over the economy and create conditions conducive to private sector activity and foreign investment.
These reforms have led to a significant increase in foreign direct investment, especially in the areas of mining, hydropower and agriculture.
Although the economy has inevitably encountered some challenges in the last two decades due to global and regional economic downturns, Laos' GDP growth rate has remained relatively high in comparison to its neighbours.
Mr Kissana said the resource sectors of energy (hydropower), minerals and agro-forestry are primarily driving the country's economic growth, with construction and services (wholesale trading, tourism, transport and telecommunications) also providing valuable contributions.
Additionally, manufacturing is expected to benefit from an increased demand for cement, construction and food and beverages. Out of the 8.6 percent growth recorded in 2011, about 3.6 percent came from the resource sectors, with about 1 percent each from manufacturing and agriculture, 0.5 percent from construction and 2.5 percent from services.
In the government's 7th National Socio-economic Development Plan (2011-2015) the overriding development policy agenda aims to achieve sustainable economic growth and reduce poverty and inequality in line with the Millennium Development Goals and the longer term objective of graduating from least developed country status by 2020.
To achieve this, the plan sets an annual target of at least 8 percent GDP growth, together with comprehensive reforms to broaden the country's productive base to be done through, amongst other things, economic diversification, human capital investment, enhanced labour productivity and a greater inclusion of vulnerable and geographically remote groups.
Mr Kissana said Laos needs to prepare for the challenges of developing technology, inflation and climate change, which may slow socio-economic growth.
Presiding over the meeting yesterday was Deputy Prime Minister Somsavat Lengsavad, which was attended by Minister of Commerce and Industry Dr Nam Vinhaket, officials from line ministries and other invited guests.
vientiane times
