Lao Government Pursues Increased Investment to Tackle Financial Challenges

Patuxay, Vientiane Capital. (Photo: Nouthaphone Simmavong).

The Lao government has expressed an interest to attract more domestic and international investments to relieve the country’s financial woes during the ongoing 5th Ordinary Session of the 9th National Assembly Legislature.

Prime Minister Sonexay Siphandone revealed at the NA Session on Monday that the total investment value in Laos will reach LAK 159 trillion (over USD 8 million) in the first six months of this year.

Around 8,673 projects with a total value of about LAK 155 trillion (about USD 9 billion) were approved in the first five months of this year, while the SEZs drew more than 42 organizations, including Lao, foreign and joint venture companies until May.

Minister of Planning and Investment, Mr. Khamjane Vongphosy, said that the Lao government is also seeking to improve regulations and mechanisms to make investment management more effective by implementing the Law on Investment Promotion.

“We are also seeking to improve the regulations governing Public-Private Partnership investment to reduce the burden on the government’s budget,” said Mr. Khamjane.

According to the minister, the government plans to increase investment by attracting more Belt and Road Initiative projects, alongside those that could be implemented at provincial levels.

Amid pertinent challenges like soaring inflation, high levels of foreign debt, and low foreign currency reserves, the economy of Laos is anticipated to expand by 4.9% in the second half of the year. The GDP of Laos is projected to reach LAK 118 trillion (USD 6.1 billion) by the end of 2023.