Gross exports expected to reach only US$3.5 billion
Gross exports expected to reach only US$3.5 billion
Gross exports from Laos this fiscal year will not meet the targets set as exports of key commodities such as copper, gold and other minerals have shrunk, a senior government official reported.
The Ministry of Commerce and Industry recently unveiled that the value of exports is forecast to reach only US$3.5 billion this fiscal year or about 83 percent of the annual plan, while import values are expected to exceed the plan.
In the 2013-2014 fiscal year, the total value of exports and imports is expected to reach more than US$8 billion, an increase of 11.5 percent compared to last year, which was only US$7.2 billion.
Export values are anticipated to reach over US$3.5 billion or 83.3 percent of the annual plan, a decline of 1.75 percent compared to last year.
Meanwhile the import value is expected to reach US$4.5 billion exceeding the plan by 11.4 percent and increasing to 24.8 percent compared to last year.
The reason exports have failed to reach the plan is falling production in key commodities such as copper, gold, and other minerals, said Ms Khemmani Pholsena, the Minister of Industry and Commerce.
Ms Khemmani made the comments at the three-day meeting between the government cabinet, Vientiane Mayor and provincial governors last week in Vientiane.
Copper and other mineral products previously covered 36.4 percent of total exports but this has fallen to 26.3 percent this year, due to the suspension of many mining projects and also falling commodity prices.
Beforehand, the ministry revealed that export values had reached US$2.6 billion in the first nine months of this year, a reduction of 7.6 percent, made up largely of mineral commodities such as copper and gold, electricity, clothing and electronic items.
The majority of the products were exported to Thailand at a cost of more than US$1.1 billion accounting for 45.5 percent of the total, an increase of 0.25 percent compared to the same period last fiscal year.
Meanwhile exports to China were valued at US$420 million or 16.2 percent of the total and an increase of 65.6 percent.
Exports to Vietnam were valued at US$419 million, or16.1 percent of the total and an increase of 64.7 percent.
In addition, some US$276 million in commodities were exported to Australia, making up 10.6 percent of the total but representing a reduction of 55.2 percent.
Ms Khemmani stressed that all concerned officials should pay close attention to promote exports in the future as we move towards the realisation of the Asean Economic Community (AEC).
In particular, the focus for the future should include exports of processed and semi-processed products to ensure maximum value is gained for farmers, businesses and the country.
In addition, we should focus on the development of the processing industry related to the market to promote agricultural production actively, have strong measures to reduce exports of natural resources and promote foreign direct investment in goods production, she added.
vientiane times
