Banks to push production growth in Xekong
Banks to push production growth in Xekong
The banking sector in Xekong province expects to issue loans of more than 443 billion kip (US$55.37 million) for small and medium d enterprises (SMEs) in the 2014-15 fiscal year.
The loans will be mainly for the SMEs to increase their production capacity for export to the Vietnamese, Thai and Chinese markets. The enterprises will include the sectors of agriculture and services.
The loans will be expected to cover about 57.8 percent of the total investments in the province, according to a report from the provincial Planning and Investment Department recently.
The province plans to have investments of around 760 billion kip (US$95 million) from both local and international sectors.
The 760 billion kip will include state direct investment of about 45.5 billion kip, as well as grants and loans of about 115 billion kip, bank assets of around 443 billion kip and investment from local and foreign companies of around 138 billion kip.
The banking sector will issue loans mainly for the production sector as it aims to help drive the growth of provincial gross domestic product (PGDP) next fiscal year.
Xekong reports that socio economic development growth will be more than 14 percent in the 2014-15 fiscal year; and GDP is predicted to be about 1,758 billion kip (US$219.75 million).
The 1,758 billion kip will include about 36.8 percent from the agriculture and forestry sector, which will be about a 9 percent increase from this fiscal year (2013-14). The industrial and handicraft sector will cover about 26.5 percent, which will be an increase of around 18 percent while the trade and service sector will provide the balance of 36.7 percent.
The province is now focusing on the promotion of agriculture to further increase the sector's growth, focusing on bulk crops and livestock.
The main bulk crops are coffee, mark naeng (cardamom), maize for animal feed, cassava, Chinese cabbage, peanuts and bananas. Livestock production involves mainly the breeding of cattle, buffaloes, goats, pigs, fish and poultry.
The province is promoting livestock breeding by establishing cooperative groups. Currently the province has 23 livestock farms, 13 pig farms, three poultry farms and seven fish farms. Crop production and industrial tree plantations are also becoming popular in the province.
In the first six months of this fiscal year, the province had a total plantation area of 19,823 hectares and harvested more than 35,570 tonnes of crops.
The 19,823 hectares covered orchards of fruit trees and fields of coffee, cardamom, vegetables and other crops, as well as rubber tree plantations.
The province will become a large agricultural production area, especially in the production of rubber, maize, vegetables and other crops that are attracting both local and foreign investors.
The authorities in Xekong are currently encouraging businesspeople to invest in the agricultural sector as the produce can be supplied to local and foreign markets and create a better income for local farmers. The sector will be the largest contributor to provincial socio-economic development.
vientiane times
