Economic growth soars in Xekong

Economic growth soars in Xekong

Xekong province is becoming one of the fastest growing regions in the country, after the government provided funds to develop infrastructure in the remote area.

The province plans to develop its economy at a growth rate of around 14 percent, according to the provincial Planning and Investment Department.

The department Director Mr Nouphone Kemmalay told Vientiane Times last week that the long term projects to be improved include the relocation of the Kaleum district capital at an amount of 930 billion kip, as well as road construction from Xekong province to Vietnam amounting to 100 billion kip.

The province is also set to develop its agriculture and industry and service sectors, he said.

In order to reach the target, the province will promote funds in development at an amount of 765 billion kip, which will comprise around 44 percent of provincial gross domestic product, Mr Nouphone said.

Around 45.5 billion kip or 8 percent of the fund is from the government, with 155 billion kip or 15 percent coming from grant assistance, 138 billion kip or 18 percent from domestic and foreign private investment and 443 billion kip or 57.8 percent from bank credit.

Last year, the province saw gross investment of about 550 billion kip of which 100 billion kip was from the government. Meanwhile some 67 billion kip was from loans and grants, 48 billion kip from domestic and private investments and 320 billion kip from bank credit.

Xekong is one of the poorest provinces in the country. Most people are still making a living from nature while some are planting rice and other commercial crops to secure family income. Mr Nouphone said despite the provincial economic growth being high, the value of revenue was still low in comparison with developed provinces such as Vientiane, Savannakhet, Luang Prabang and Champassak.

Although Xekong province's economy has continues to grow, the country's overall economy is slowing somewhat due to the financial crisis.

In 2012, the country's economic growth was about 8.3 percent followed by about 8 percent in 2013.

However, this year it has decreased to about 7.6 percent and is expected to drop to around 7.5 percent next year, according to the Ministry of Planning and Investment.

The major contributors to growth are hydropower, mining and construction.

vientiane times