Laos eyes US$2.1 billion exports next fiscal year
Laos eyes US$2.1 billion exports next fiscal year
The government expects a major surge in the export value of Lao goods next fiscal year as a number of hydropower projects are scheduled to be completed and come on line later this year and early next year.
According to a report from the Ministry of Planning and Investment to the National Assembly conference this month, the government projects that the export value of Lao goods will reach US$2.1 billion in the 2013/2014 fiscal year, which begins on October 1.
The value of Laos' total exports reached US$880 million in the first half of 2012/2013 fiscal year and the government expects that the exports for the entire fiscal year will reach US$1.8 billion.
The surge in export values next fiscal year will be made possible thanks to mining royalties and revenues flowing from hydropower projects.
The government expects that electricity exports in the 2013/2014 fiscal year will reach US$557 million. A number of hydropower plants are now under construction and expected to be completed within the next fiscal year.
Exports of mineral ores will also be one of the main driving forces of export growth. The government expects that the total output of mining products will be valued at more than US$2 billion, most of which will be exported to generate foreign exchange.
Other top foreign exchange earners for Laos next fiscal year will be agricultural products, garments and handicrafts, tourism and some industrial products.
The government expects that next year, import values will reach US$2.7 billion, which will result in a trade deficit of about US$552 million.
In the first half of this fiscal year, the value of total imports was US$1.6 billion, which resulted in a trade deficit of about US$281 million.
Most of the imported materials over the first half of the current fiscal year were vehicles, industrial and construction materials and processed foods.
Rising import values are attributed to the rapid increase of investment projects and economic growth. The government has approved 29 domestic and foreign investment projects with a combined investment cost of US$1.6 billion.
Lao economic growth saw at least eight percent growth over the first six months of this fiscal year, creating higher purchasing power among sections of the population.
vientiane times
