Loans to bolster Huaphan’s agriculture, service provision
Loans to bolster Huaphan’s agriculture, service provision
Two sectors - agriculture, and trade and services - are set to benefit from loans by four banks in the last quarter of this fiscal year, in the wake of booming investment in these areas in Huaphan province.
The province’s Planning and Investment Department reported recently the banking sector expects to issue loans of about 546.15 billion kip (US$68.27 million) for use in trade and services, agriculture, construction and industry.
The money will be issued by the Lao Development Bank (LDB), Agricultural Promotion Bank (APB), Banque pour le Commerce Exterieur Lao Public (BCEL), and Nayoby Bank.
The 546.15 billion kip will include more than 125.43 billion kip for investment in trade and services, while over 101.28 billion will go to agriculture.
Nayoby Bank hopes to issue loans of over 122.24 billion kip (US$15.28 million) in the last quarter, including more than 77.46 billion kip for agriculture and over 23.20 billion kip for trade and services. The balance will go to the processing industry and construction sectors.
The 77.46 billion kip allotted to agriculture will comprise about 10.6 billion kip for crop production and around 66.86 billion kip for livestock breeding.
APB expects to issue loans of more than 127.2 billion kip (US$15.9 million) in the last quarter, including 66.15 billion kip for the trade and services sector, and 16.02 billion kip for agriculture.
BCEL plans to issue loans of over 117 billion kip (US$14.62 million) in the fourth quarter, including about 8.77 billion kip for the trade and services sector, and 7.8 billion kip for agriculture.
LDB will disburse about 179.71 billion kip (US$22.46 million), including 12.81 billion kip in short term loans, 163.38 billion kip in medium term loans, and 1.26 billion kip in long term loans.
Agriculture falls within the production sector through the production of crops and livestock, and handmade and processed goods for export. The agriculture sector is supported by large loans to boost investment and production in the local and export markets.
Last year Huaphan province sold goods worth US$23.05 million to Vietnam, with agricultural produce and forestry products making up 85.03 percent of the total.
The main agricultural products exported were maize and paddy rice. Maize is used in animal feed and also as a snack while paddy rice is consumed only as a snack product. Maize is the main export crop and is grown in all districts of the province.
Huaphan is aiming for an increase in agricultural production, hoping the sector will account for a larger share of social and economic development next fiscal year due to the province’s potential for crop and meat production.
Huaphan tourism, as part of the service sector, is hoping to yield additional income of more than 3.71 billion kip in the last three months of the current fiscal year, after recording large earnings in the first nine months.
To achieve this, the sector needs to attract more than 9,800 visitors in the last three months of this fiscal year, on top of 25,900 tourists in the first nine months.
To attract such a large number of visitors, the related sectors will have to work harder in regards to tourism promotion and improving management in the private sector, especially through investment in restaurants, entertainment venues, hotels, guesthouses, vehicle provision, and tour operators.
vientiane times
