Laos' service sector shows rapid growth
Laos' service sector shows rapid growth
Laos expects that growth in the service sector will reach 9 percent by the end of this year, accounting for 40 percent of Gross Domestic Product (GDP).
Deputy Minister of Planning and Investment, Dr Khamlien Pholsena, said recently that in the first nine months of this year growth in the sector had reached 8 percent, accounting for 39. 8 percent of GDP, an increase of 10 percent compared to the same period in 2015.
Dr Khamlien also said the value of Laos' trade with other countries had now exceeded US$59 million.
The growth in trade has accelerated with increased exports of bananas, tobacco products, electricity, electronic equipment such as cameras, bronze, and sweetcorn.
Banks have provided credit for investment in the production of various goods to the extent of 5.2 billion kip, or 80 percent of the government's plan.
Laos expects GDP to grow by 7.5 percent by the end of this year as planned, which is the main driver of economic growth next year.
The tourism sector is also expected to reach the growth target of 4.7 percent by the end of this year. The Tourism Development Department of the Ministry of Information, Culture and Tourism reports that Laos received 4.3 million visitors in 2015, an increase of 4 percent over 2014.
Some 70 percent of tourists come from within the region, mostly from Thailand, while the other 30 percent come from Europe, America, Japan, Republic of Korea, Australia, Africa and the Middle East.
The growth in tourism and the overall economy will help to spur investment in the service sector, especially in hotels and restaurants.
According to the Lao National Committee for Special Economic Zones (SEZs), almost 300 companies from Laos and overseas are now investing in SEZs in Laos, with total registered capital of almost US$8 billion, of which US$1.62 billion has been spent.
SEZs have become the main driver of growth in the industrial and service sectors, laying the foundation for the diversification of the nation's economy.
