Economists, private sector upbeat about strong Lao economy this year

This year, the government has set the growth target at 7 per cent, only 0.1 per cent more than the 6.9 per cent achieved last year. Last year's growth rate fell short of the targeted figure of 7.5 per cent.
Chairman of the Lao National Chamber for Commerce and Industry, Oudeth Souvannavong, told Vientiane Times on Tuesday the government's Gross Domestic Product (GDP) projection was appropriate and the percentage increase was not high compared to the previous figure.
Commodity prices in the resource sector are currently trending upwards on the global market, and if this continues it bodes well for the economy as Laos exports minerals such as copper. In addition, some hydropower projects are expected to be complete this year and they will help to stimulate the growth of other sectors, Oudeth said.
The prediction for the farming sector is a growth rate of 3.1 per cent, up 0.1 per cent on last year, while the railway that will be built to link Laos and China will be crucial in boosting development and bringing in more supplies. In addition, the railway will generate jobs and income for local people.
However, the private sector is hoping for a better business climate in 2017 and will continue to work with state organisations to address various obstacles.
He said some issues will take a long time to resolve, especially those related to the improvement of regulations and the amendment of laws.
At the end of January, the private and public sectors will hold a meeting about ways to facilitate business operations. On the agenda will be easier registration by companies, the facilitation of tax payments and eradication of unnecessary trade barriers, and lowering the price of goods.
Director General of the National Economic Research Institute under the Ministry of Planning and Investment, Dr Leeber Leebouapao, said Wednesday that economic expectations are based on existing projects such as those in agriculture, industry and other investments, including new investment projects. It may be possible for expectations to be exceeded, but not by much.
Leeber said the most important thing now was judicious management of the macroeconomy, domestic goods prices, and currency exchange rates. In addition, the investment climate and natural disasters were issues that needed special attention, in terms of improvemen t and monitoring respectively.
He said investment policies had improved in theory, but their practice left a lot to be desired. At the same time, Associate Professor and Vice Dean of the Faculty of Economics and Business Management at the National University of Laos, Dr Phouphet Kyophilavong, made some comments on the economic situation in 2016 and the lessons learnt for 2017. He said Laos' GDP was continuing to increase and the country had one of the fastest growing economies in Asean. However, the main driver of economic growth is the resource sector, particularly hydropower.
Inflation remained low and the kip exchange rate was stable against the US dollar. Export earnings had declined due to lower demand and falling commodity prices.