Lao province raises the bar on economic development

L AOS’ Oudomxay prov ince a ims to achieve a n a nnual economic grow t h rate of 7.7 per cent, bu i ld i ng on t he growth rate of 6.8 per cent over t he f irst si x months of t his year, which is higher than the national average.

The target was cited in the province’s development plan, which was introduced to the just ended provincial People’s Council last week.

The Socio-Economic newspaper referred to a report from the province’s Department of Planning and Investment, which stated that Oudomxay achieved a gross domestic product (GDP) of 3.9 trillion kip ($446 million) over the past six months, resulting in average per capita income of $1,394.

Whi le t he ser v ic e sec tor accou nted for t he sma l lest component of GDP at 25.6 per cent, t his sector recorded t he most grow th.

Agriculture and forestry grew at a rate of 4.2 per cent and contributed 39 per cent of GDP, while industry recorded a growth rate of 3.1 per cent and contributed 31.7 per cent of GDP.

Taxes collected from Lao and foreign businesses contributed 3.6 per cent to GDP, with this component registering a growth rate of 3.9 per cent.

Oudomxay produced a rice su r plu s i n t he d r y sea son a f ter ha r vest ing 723 tonnes which y ielded a surplus of 64 per cent in excess of t he target. The amount of rice harvested this year is three times the amount har vested in last year’s dr y season.

Ot her f o o d c r op y ie ld s amounted to 19,000 tonnes, which accounted for 98 per cent of t he target f ig ure over t he past half of t he year.

The prov ince g rew 30,000 tonnes of commercial crops, equa lling 83 per cent of t he ta rget f ig ure.

Trees were replanted on 30,000ha of land.

The i ndust r y a nd ha ndicraf ts sector earned 112 billion k ip, while t he prov ince’s ex por ts were va lued at 36.1 billion kip with imports totalling only 5.1 billion k ip.

According to the report delivered at the meeting, Oudomxay will focus on economic development but will also work to improve social development and environmental protection, and alleviate poverty.

By raising economic growth to 7.7 per cent, GDP is on track to be f ou r t r i l l ion k ip a nd average per capita i ncome would be $1,501.

To achieve these goals, the service sector will have to grow by 15.2 per cent and contribute 24.3 per cent of GDP, agriculture must grow by 7.3 per cent and account for 42.4 per cent of GDP, while industry must grow by 5.2 per cent and contribute 30.5 per cent of GDP.

Taxes on Lao and foreign businesses and imports must increase by 9.3 per cent and comprise 2.6 per cent of GDP.