Energy sector to be ‘big contributor to Laos’ GDP’

His ministry is confident that economic growth will reach 7 per cent next year thanks to the growth of the industrial sector.
It is envisaged that industry will grow by 8.9 per cent and will contribute 37.2 per cent of gross domestic product.
“The energy sector will be the major source that will push up economic growth to 7 per cent,” Souphanh told the National Assembly on Wednesday.
Many power plants are now fully operational, including the Hongsa Mine Mouth Power Project, which has installed capacity of 1,787 megawatts. 
At least eight other major power plants will come online soon, including Xekaman 1 with 322MW, Nam Ou 5 with 240MW and the Nam Lik and Nam Phay hydro plants.
The industrial sector will include the growth of the processing industry because, based on the investment law, the government has promoted investment in economic zones.
The service sector expects growth of 7.8 per cent to contribute 34.7 per cent of GDP. The service sector includes finance.
The mining sector expects to maintain the same rate because the price of gold and copper ore will not increase on the global market, which will be only 70 per cent of the production cost.
The construction sector will also grow, especially through the construction of a railway that will begin next year.
The government’s investment projects will also maintain the same growth rate or a little lower.
Agriculture is expected to see growth of 3.1 per cent covering 18.8 per cent of GDP, and more attention will be paid to crop quality, including rice. 
“We hope to have about 4.35 million tonnes of rice,” Souphanh said.
“That is why the 7-per-cent growth next year will be possible, or it may be about 7.2 or 7.3 per cent.” 
In 2017, GDP is expected to grow by 7 per cent to 129,683 billion kip (Bt558 billion), with GDP per capita equivalent to US$2,341 (more than 19 million kip, or Bt82,146) and gross national income per capita reaching $1,850.
The government is promoting the rapid development of power plants for local supply in a bid to cut electricity imports.
According to Energy and Mines Minister Dr Khammany Inthirath, as of 2015 Laos had built 38 power plants at a cost of more than 81.7 trillion kip with a total installed capacity of 6,265MW. 
Combined, they can generate 33.315 billion kilowatt-hours of electricity a year.
There are 45 power plants under construction and more will be developed.
Laos is aiming for a total installed capacity of about 12,000MW by 2025, the Ministry of Energy and Mines reported.
The abundant resources of the Mekong River and its tributaries give Laos the potential to produce more than 25,000MW of electricity.
In 1975, only 19,000 Laotian families or 3 per cent of the total population had access to electricity, but today 89.6 per cent of the population can access the power grid.