Vientiane province needs11 trillion kip investment
Vientiane province needs11 trillion kip investment
Vientiane province will need to have about 11 trillion kip invested in development to ensure its economy will grow at 8.3 percent annually over the next five years.
The need for capital has been identified in the province's socio-economic development plan for the period from 2016 to 2020. This means the province will need 2.2 billion kip every year, which is equivalent to 34 percent of its GDP.
To fulfill the investment plan the province expects to receive 900 billion kip from the state budget, 1.6 trillion from grants and loans, 5.6 trillion from domestic and foreign investment, and 3 trillion from bank credit releases.
The province also plans for revenue to be increased at 19 percent annually over the next five years, the amount to reach at least 1.3 trillion kip over the period.
From 13 to 15 percent is the annual increase in exports from the province, which plans to achieve 548 billion in export volume over the five years, which will come from wood, agricultural, industrial and forest products.
In the past five years the province has been able to generate about 8 trillion kip for its ongoing development. Of this amount 520 billion kip came from a state budget allocation, 858 billion kip from grants and loans, four trillion kip from private sector investment and 2.5 trillion from bank credit releases and individual investment.
Investment has seen the growth rate become eight percent annually in the past few years and has changed the provincial economic structure with services gradually gaining greater dominance, while the proportion of GDP generated by agriculture has decreased.
The relevant figures are that agriculture contributed 47.6 percent of GDP in 2011 but this went down to 41 percent this year. The services sector produced 19.2 percent of GDP in 2011 which has grown to 29.1 percent this year. The contribution of the industrial sector has decreased from 33.1 percent to 29.8 percent over the same period.
The provincial Department of Planning and Investment Director Mr Oudong Phongphaypadith confirmed that new investment has seen comm ercial agricultural production and the appearance of model families operating farms create an increase in a gricultural produce processing industries.
Exports from the province have also increased by 13 percent compared to 2011. More than 740 service business units have also been added.
Main infrastructure facilities have been built such as the new capital town of the province, new offices in some districts, the new Nam Ngum bridge, roads links between Hinheup and Xanakham, Kasy and Maed districts, water supply and other projects, some of which have been completed with some still underway.
