Laos records trade deficit of US$336 million in 11 months of 2021; economy to grow by 4.2% in 2022

VIENTIANE, Dec. 16 (Xinhua): Laos recorded a trade deficit of US$336 million in the first 11 months of 2021, according to the latest information from the Lao Trade Portal website.

The value of exports was recorded at US$4.9 billion (excluding electricity), while goods worth US$5.24 billion dollars were imported, according to the data.

The main exported products were copper and products made of copper, bananas, mixed gold (gold bars), clothes, cassava, coffee beans, sugar, rice, rubber and fruit (watermelons, passion fruit and tamarind), livestock and processed wood.

Meanwhile, the main imported products were vehicles (other than motorcycles and tractors), electrical devices and equipment, premium grade and regular fuel, diesel (for use other than in motor vehicles), steel products, plastic products, chemical equipment and food factory waste.

Laos' main markets continue to be Thailand, China and Vietnam, with China leading the export market.

Despite the Covid-19 pandemic, the Lao government is making efforts to bolster trade, especially through better transport links.

The government is working with the private sector to improve the business environment to attract more foreign trading partners and investors through the removal of unnecessary obstacles and the provision of incentives, policies and proper regulations.

Meanwhile, the Lao economy is projected to grow by 4.2 per cent in 2022, driven by commercial production for exports and opportunities and benefits arising from the China-Laos Railway.

The rail link, which became operational recently, will enable Lao products, notably agricultural goods, to have better access to the Chinese market, according to the latest report from the Lao National Economic Research Institute.

The railway put Laos in the global spotlight, providing much-needed rail connectivity and using the country's landlocked location to develop strong overland transport links, local daily Vientiane Times reported on Thursday (Dec 16).

The Lao government aims to make the country a regional hub and offer transit services. The country will also seek to capitalize on all the potential provided by the railway, officials said.

In 2021, the Lao economy is projected to grow at a rate of 3 percent, lower than the figure of 4 percent approved by the National Assembly.

The slower growth is being linked to the prolonged lockdown imposed to contain the spread of Covid-19. The pandemic interrupted economic activities and forced companies, retail and wholesale shops and factories to shut down, impacting employment rates.

The report said that the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade deal which will become effective from Jan. 1, 2022, will create favorable conditions for more trade, foreign investment and tourism in Laos. - Xinhua