Vientiane economy remains healthy
Vientiane economy remains healthy
Continued high economic growth and expanding investment in Vientiane have kept the Lao capital's economy healthy despite lower-than-expected government revenue collection, according to a report.
Gross domestic product (GDP) in Vientiane for the 2012-2013 fiscal year reached 25,315 billion kip, up 12.7 percent from the previous year, according to Vientiane Mai newspaper, which cited a report from last week's Vientiane Party Committee meeting.
Industry led the way in the capital, contributing 45.4 percent to GDP, followed by the service sector at 35.2 percent and agriculture and forestry at 19.4 percent.
Per capita income rose to US$3,325 or 26 million kip, more than double the national level of about US$1,300.
Over the past year the Vientiane authorities recorded 10,938 billion kip of investment in the city, exceeding the target figure by just over 9 percent.
The city saw remarkable growth in investment financed by foreign loans and grants, which reached almost 670 billion kip – 16 times the planned figure.
Investment financed by the domestic and foreign private sectors hit 8,634 billion kip, 1.25 percent more than was targeted.
However state investment failed to reach its planned levels, sitting at 454.36 billion kip or just 92 percent of the target figure. Investment through bank loans achieved only 87.61 percent of the planned amount.
The Vientiane authorities also fell short on revenue collection targets, but still managed to spend more than was initially allocated.
The report showed revenue collection reached 91.19 percent of the target, at 688 billion kip, while spending rose to 809 billion kip, or 121.86 percent of the target figure.
According to the report, the capital owes 237.22 billion kip (more than US$30 million) to investors who funded 118 projects, mainly in infrastructure development.
Vientiane harvested 241,642 tonnes of rice in the rainy season, an increase of 16 percent compared to the yield a year before, while the dry season rice harvest was 84,567 tonnes, a decrease of 19 percent.
Another 97,986 tonnes of vegetables and other crops as well as 52,685 tonnes of meat, fish and eggs were produced.
Socio-economic development meant the number of impoverished families in Vientiane dropped to just 76.
Last week's meeting also focused on the Party Committee and Vientiane authorities' need to boost efforts to address social issues and properly enforce the law.
The meeting set this fiscal year's target of 12.7 percent GDP growth for the capital, which would see the figure rise to 29,912 billion kip and income per capita to reach US$3,400 or 27 million kip.
vientiane times
