Govt pledges to fulfil economic goals in next five years

The government will carry out economic reforms from now until 2025 to ensure sustainable and quality growth of Gross Domestic Product (GDP).
An economic growth rate of 4-5 percent annually has been set as the target for 2021-2015, with inflation of not more than 6 percent annually.
Deputy Prime Minister and Minister of Planning and Investment, Dr Sonexay Siphandone, told the National Assembly recently that there were several goals to be achieved in the next five years.
The Deputy PM stressed the importance of boosting national revenue and minimising loopholes for financial leaks as well as wisely using natural resources.

The government also said it will properly manage public debt while ensuring efficient budget expenditure on state investment projects.
One of the government’s most important policies is to improve mechanisms and measures to address economic difficulties and ensure quality growth and stability of the macro-economy.
Dr Sonexay said the government will also improve the structure of the economy, with a focus on SMEs and economic development along the Laos-China economic corridor and East-West and North-South economic corridors. Development of SEZs, dry ports and modern cities is also planned.
It was vital to continue to tap potential in areas related to hydropower, tourism and connectivity along economic corridors, he added.
The government will strive to boost the revenue it earns from land and will focus on agricultural processing, the construction industry, and the potential of young people.
“We will empower local entrepreneurs to ensure they are part of regional and international supply chains. The government will also try to attract more domestic and foreign investment to boost GDP,” he said.
It is also essential to reform state investment to ensure the budget is used effectively and efficiently. In addition, the development of infrastructure and health services must be done in a focused manner to ensure Lao people have a better quality of life.
Laos also has huge potential to generate more income from tourism due to the abundance of its natural, historical and cultural places of interest.
This year, the economy is projected to grow by 3.3 percent because the Covid-19 pandemic has disrupted economic activities and slowed the growth of the service sector.
The pandemic has resulted in rising unemployment, with the rate currently standing at about 20 percent, and the government has pledged to address this issue.
One of the main challenges for Laos is the rising debt burden and fluctuating currency exchange rates, which are driving up inflation and the cost of living.
The government has vowed to remove more barriers and improve the business climate in a bid to attract more investment from within Laos and from foreign countries to further boost economic growth.
In addition, the government will encourage foreign investors to train and employ Lao people in the development projects or commercial operations they undertake.

By Somsack Pongkhao
(Latest Update December 9, 2020)