Govt eyes further growth of service sector
Govt eyes further growth of service sector
The government expects that the total trade value in the services sector this fiscal year will increase 27.5 percent on the annual plan thanks to a trading expansion.
The government set a plan to reach 32,788 billion kip in total trading value this year but now believes it will achieve 41,809 billion kip at the end of this year, including wholesale and retail sales as well as service costs.
This is a significant increase on the total figure predicted in modelling and the government's plan.
According to a government report, trade in foodstuffs will increase 13 percent, while there will be an increase of 15 percent in construction equipment, a rise of 7 percent for petrol and gas products, 9 percent for handicraft and woven products, 9.8 percent for agricultural products, and 11.6 percent for electricity and home products.
In the first nine months of this year, Laos' total trade value reached 30,118 billion kip compared to the same period last year, an increase of 9.9 percent.
This rise was attributed to an increase in trading, while the rising numbers of tourists and hotels, guesthouses and restaurants is helping the service sector to expand.
The service sector is now the third biggest source of national income, and offers significant opportunities for local pe ople engaged in the tourism and hospitality sector.
The number of tourists visiting Laos recently reached 4.9 million people with total tourism revenue reported at US$282 million.
The country has 1,957 official tourist sites, of which 1,145 are natural attractions, 534 are of cultural interest, and 278 are historical.
To attract more visitors, the industry and commerce as well as the information, culture a nd tourism sectors are displaying products at trade fairs overseas as well as sharing trade experiences and tourism information.
Next year, the government will try to develop the service sector to grow by 7.8 percent, covering 34.7 percent of GDP.
It will focus on transportation, posts and telecommunications, banking services and government administration.
The government will also try to increase GDP growth to about 7 percent next year or 129,683 billion kip, which would put average per capita income at about US$2,341 or US$1,850 as a percentage of GNI.
The service sector is an important contributor to GDP growth and socio-economic development.
However, the sector's development requires more cooperation and assistance from domestic and overseas agencies.
Development also needs more action by local authorities and different policy measures to adapt and relate with international standards and actual conditions on the ground.
The service sector is still struggling with many issues especially product quality, low level skill sets among workers, and limited promotion.
