Laos eyes on promoting domestic products to boost economy

VIENTIANE (Xinhua): The Lao government is keen to promote domestic production and reduce the importation of products that can be produced domestically to boost the Lao economy.

"If domestic production levels can be raised sufficiently to replace the need for imported goods, this would greatly improve Laos' balance of trade," Ardsaphangthong Siphandone, the mayor of Vientiane, said at a meeting in Lao capital Vientiane recently.

The meeting was held to discuss what types of goods and equipment could be manufactured by Lao companies, as part of efforts to stabilize the economy, boost production levels, and lower the rate of inflation.

Lao authorities plan to reduce the volume of imported goods by encouraging manufacturers to boost output levels so that more Laos-made goods are available for purchase.

"Higher production levels are essential for the socio-economic development of Laos, especially Vientiane, and at the same time will create job opportunities and make use of available resources for maximum results," the mayor said.

Depreciation of the Lao currency kip is one of the main factors driving inflation, as one-third of the goods used to calculate price rises are imported.

Laos' inflation rate eased to 28.64 percent in June, marking the fourth straight month of decrease in the country, according to the latest figures from the Lao Statistics Bureau.

However, the figure remains sky-high, causing real household incomes to fall for many people, weakening consumption and investment.

Meanwhile, Lao Ministry of Industry and Commerce announced a number of measures to promote domestic production and reduce imports during the fifth ordinary session of the National Assembly (NA) of Laos, which wrapped up on July 18.

Businesses in Laos are encouraged to sell domestically produced products instead of imported goods, said Deputy Minister of Industry and Commerce Chansouk Sengphachanh.

For further support for micro, small, and medium-sized enterprises (MSMEs), Chansouk said loans will be provided with low-interest rates and offer technical assistance to help MSMEs improve their production quality.

Furthermore, the ministry will strengthen cooperation with Laos' central bank to register all importers and exporters, allowing for better regulation of two-way trade in the country.

In June, Laos recorded a trade deficit of US$126 million. The total value of trade was recorded at over US$1 billion, of which US$458 million were exports and US$584 million were imports, according to the latest figures from the Lao Trade Portal website. - Xinhua