Vangvieng district is making a modest yet meaningful contribution to the tourism revenues of Vientiane province. --Photo Bounfaeng

Vientiane province’s economy records 3.8 percent growth in first half of 2025

Vientiane province has recorded 3.8 percent economic growth in the first six months of the year, with a total economic output of 9,065 billion kip at current values.
The figure represents 68.18 percent of the province’s annual target of 13,294 billion kip, according to a report presented at a mid-year review meeting on July 28.
The meeting was held to review the implementation of the province’s socio-economic development plan and state budget for the first half of the year, and to outline key priorities for the remainder of 2025.
The Deputy Governor of Vientiane province, Dr Phouthanouphet Xaysombat, chaired the meeting that was attended by local authorities and representatives of different sectors.
According to the report, the province’s per capita gross domestic product (GDP) reached US$836, reflecting modest but stable economic progress amid ongoing efforts to boost production and attract investment.
Economic growth during the reporting period was driven by the collective performance of the agriculture, industry and services sectors.
The agricultural sector grew by 2.8 percent, contributing 29.70 percent to the province’s GDP. This growth was underpinned by the cultivation of key crops, livestock production, and steady demand for agricultural exports.
The industrial sector experienced the highest growth among all sectors at 4.5 per-cent, accounting for 33.77 percent of the GDP. Key drivers included agroprocessing, manufacturing and infrastructure development, particularly in transport and energy.
The services sector expanded by 3.8 percent, making up 34.07 percent of the GDP. The growth in services was supported by a rebound in tourism, an uptick in trade activities, and stronger performance in transport and logistics.
Improved connectivity and increased visitor arrivals contributed to rising demand for accommodation, food services, and retail trade across Vientiane province.
Net product taxes rose by 1.5 percent and accounted for 2.46 percent of the GDP, reflecting improved tax collection and economic activity.
The meeting also reviewed budget performance and outlined measures to accelerate key development projects, enhance local revenue collection, and support small and medium enterprises during the second half of 2025.

by Times Reporters
 (Latest Update July 31, 2025)