Lao PM advises northern provinces on ways to tackle economic crisis

Prime Minister Sonexay Siphandone and his officials visit a mulberry tree project in Xay district, Oudomxay province. - VT

VIENTIANE (Vientiane Times/Asia News Network): Prime Minister Sonexay Siphandone last week chaired a meeting in Oudomxay province to discuss ways to tackle Laos’ economic slump, which is fuelled by inflation, unfavourable currency exchange rates, spiralling prices, and foreign debt.

The meeting was attended by authorities from Oudomxay and five other northern provinces.

Dr Sonexay instructed provincial authorities to do more to promote the production of goods for domestic use and export, in order to reduce the amount of goods imported.

He advised provincial governors to better manage revenue collection and promote domestic and foreign investment, using lessons learned from foreign countries to attract more investment and bring more foreign currency into Laos.

Provincial leaders should ensure that all foreign investment is channelled through the Lao banking system. Foreign investors must open a Lao bank account in line with Lao law, to promote use of the kip in financial transactions, the Prime Minister instructed.

The premier also advised provincial authorities to encourage greater production and consumption of Lao-made products, and to do more in the way of processing to add value to commodities.

In addition, there must be close management and monitoring of mining operations to ensure they comply with government regulations, he added.

With regard to transport, local authorities were advised to partner with related sectors to improve and upgrade roads and other infrastructure to enable easier and swifter transport of goods.

In preparation for Visit Laos Year 2024, Dr Sonexay instructed local authorities to tap all forms of tourism potential, to attract more tourists from abroad.

Provincial authorities reported on the progress of socio-economic development plans and efforts to fulfil the government’s two priority national agendas.

They made suggestions for consideration by government leaders and asked for guidance on ways to improve their administration in the future.

Prime Minister Sonexay and his delegation also visited factories and companies in Xay district, as well as development projects being undertaken by local and foreign businesses.