Laos' export value set to grow by 14 percent
Laos' export value set to grow by 14 percent
The Lao government expects the export value of the country to grow by 14 percent this fiscal year as development of the industrial sector accelerates.
The government expects that export value of the country this fiscal year will be US$2.1 billion, up from US$1.8 billion last fiscal year, according to a prime ministerial decree on the implementation of the 2013-14 socio-economic development plan.
In 2012-13 fiscal year, Laos saw a 21 percent growth in export value driven by mining and hydropower development. Rapid growth of the manufacturing industry including garments, sugar and coffee also contributed to the growth.
Officials said the anticipated 14 percent rise in the 2013-14 fiscal will be possible thanks to a booming industrial sector, including hydropower plants, garment factories, sugar and rubber processing plants and coffee processing.
The government expects the sector as a whole to grow 12 percent this fiscal year, which would make it the fastest growing component of the economy.
Despite this the industrial sector remains the second largest in Laos behind the service sector, which will see only 9 percent growth but is expected to account for 39 percent of the Lao economic base this fiscal year.
Export of rice will also increase under a government policy to boost rice production so as it can export to world markets, including in China and Europe.
Provinces in central Laos have been marked as future rice cultivation growth areas. Xayaboury is one of the provinces, which is already actively producing rice and other crops for export.
Tourism is one of the service sectors that will boost the export value of Laos. The government expects tourist arrivals to number 3.5-4 million people this fiscal year, which will generate foreign exchange of about US$518 million.
According to the decree, the government expects that import value of goods will be about US$2.7 billion, which will result in trade deficit of about US$552 million. The import value is expected to increase from US$2.8 billion last fiscal year.
The import of construction materials for new investment projects will become a main driving force of export growth while the import of fuel and cars will also contribute as the government has allowed car dealers to offer installment sales.
vientiane times
